There are a lot of misconceptions about buying a property & getting a mortgage in the UAE. We've listed the top four common misconceptions, and break down what is real and what is a myth.
You need to be a top earner
Property prices can be overwhelming, but it is possible to get a mortgage & secure your dream home even if you’re not a top 1% earner! As long as you’re earning over 10k AED a month you could still be eligible for a mortgage. However, your salary, along with any existing liabilities, will affect your borrowing capabilities.
Expats don’t qualify for a mortgage
Even if you live outside of the UAE, or are only a resident of the country, you can still buy a property & get a mortgage in the UAE. The process is slightly different for non-residents, residents, and UAE nationals, so you’ll need to be aware of your status and what that means for your buying and borrowing options. For example, minimum down payments for non-nationals is 20% whereas for UAE nationals it’s only 15%. You can find out more about the nuances of qualifying for a mortgage in our blog ‘Am I eligible for a mortgage?’
You need a perfect credit score
A healthy credit score is important for getting a mortgage, but if you have a lower score it doesn’t mean you’re completely out of the running. If your credit score isn’t where you want it to be, there are ways you can increase it. Take a look at our blog ‘4 tips to increase your credit score’ and see our tips on how to get your score where you need it to be.
It’s risky to invest in the UAE
As with any investment, there is risk involved. The UAE, however, has proven its worth in recent years for property investment as rental yields range from 5-9%, which is significantly higher than other major cities like London (2.7%), New York (2.9%), and Hong Kong (2.4%). The UAE also doesn’t have property tax or stamp duties, making it even more lucrative for those investing in the property market in the UAE.
It can be confusing navigating all the intricacies of getting a mortgage and buying a property in the UAE, especially with so much untrustworthy advice out there. Don’t worry, our experts have over 25 years of experience in the UAE and can help you answer your questions.