Mortgages Become Easier to Get Again

After several years of tight lending, mortgages are becoming easier to obtain in Dubai. Banks are competing for borrowers with stable incomes, offering better rates and terms than were available during the crisis. For residents who want to buy, this is a significant change.

What has improved

• Rates: more competitive pricing for strong borrowers.
• Products: fixed and variable options, including Islamic finance.
• Speed: faster approval processes.
• Competition: more banks are active in home loans.

What has not changed

Banks remain more careful than during the boom. They check income and debts thoroughly, prefer completed properties and generally require meaningful deposits.

Borrowing responsibly

Borrowers should ensure their repayments are affordable even if rates rise, keep an emergency fund and avoid stretching for a property beyond their means.

Comparing offers

Borrowers should compare the full cost of a mortgage, including arrangement fees, insurance and early repayment charges, not just the headline rate.

Effect on the market

Improved mortgage availability broadens the pool of buyers, particularly residents buying their first home. This supports demand for mid-market properties and family villas.

Documents lenders usually require

Preparing documents in advance can speed up a mortgage application considerably. Salaried borrowers are typically asked for a passport and residence visa, a salary certificate from their employer, recent bank statements and pay slips. Self-employed borrowers usually need trade licences, company accounts and personal and business bank statements covering a longer period. Lenders will also ask about existing loans and credit cards. For the property itself, a sale agreement and a valuation by the bank's approved valuer are required. Pre-approval before searching gives buyers a clear budget and strengthens their position when negotiating. Keeping finances tidy in the months before applying, by avoiding new debts, improves the chances of approval on good terms.

Our view

Better access to finance is good news for end users. We help clients understand their options and choose financing that suits their circumstances.