Already bought a property in the UAE as an expat? Are you now thinking about adding a second to your portfolio? Well, you'll likely want a mortgage for that. Here we walk you through the particulars of obtaining a second mortgage in the UAE.
It is absolutely possible for expats in the UAE to obtain a second mortgage, provided they can afford the repayments on both mortgages. Different lenders may also have different policies in place. At Holo, we search the market for you to find the second mortgage product that is right for you and your circumstances. As with your first mortgage, you'll be expected to submit proof of income and residency, and the success of obtaining a second mortgage will depend on your credit score and affordability.
If you are a salaried employee you'll be expected to submit
- Passport
- Visa and Emirates ID
- Salary Certificate
- Six months' bank statements
- Six months payslips
If you are self-employed you'll be asked to provide
- Passport
- Visa and Emirates ID
- Six months' bank statements
- Trade Licence
- MOA/AOA
- Audited financials for two years
- 12 months of business account statements
Lenders may view loaning to expats looking for a second mortgage as a higher risk than a UAE national. The UAE has a high expat population and due to this, it is very transient in nature. For this reason, lenders cap the amount you can borrow for a second mortgage at 60% regardless of the property value.
When you are securing a mortgage for the first time the amount you can borrow depends on whether the property is above or below AED 5 million. With a second mortgage, this is not the case. The maximum you can borrow is 60% regardless of the property value.
When applying for a second mortgage it's important to get the right advice. Working with a mortgage consultant who can give you impartial and expert counsel will help manage your expectations and keep the process as stress-free as possible.
Start researching your options with the Holo UAE Mortgage Calculator. This will give you an indication as to how much you might be able to borrow. Your next step is to give us a little bit more information about your current status.
In just six easy steps you can discover how much it would be possible for you to borrow. We'll ask you about your residential status and income, and we'll also want to understand whether you're looking at a fixed or variable, or a conventional or Islamic product. Don't worry you can also choose to see the best options for all types of mortgages. In less than two minutes we'll show you a selection of mortgages that meet your criteria.
If at this stage you're still uncertain or have more home mortgage questions, one of our expert expat mortgage consultants will give you a call to have a chat in more detail about what you're looking for and what we can do for you.
As well as being able to borrow a smaller amount on a second mortgage you may find that the rates for mortgages available to you differ. So do not assume that your mortgage EMI (equated monthly installment or repayment) will be at the same rate as your existing mortgage. Speak to us and we will find you the best deal in the market.
Our service is 100% free throughout the whole process of securing a second mortgage, our time will not cost you a penny.
Ready to get started for free? Head to Holo and let's get you going.
This blog is for educational purposes, but everyone's case is unique, and local guidelines and regulations may change. Our mortgage advisors can help you with any question you may have and have the latest advice. Get in touch.