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Buying a home in Dubai is an exciting milestone, but before you start viewing properties or making offers, there's one critical step that can make or break your journey - mortgage pre-approval.
In a competitive real estate market like Dubai, having a mortgage pre-approval not only helps you understand what you can afford but also puts you in a stronger position when negotiating with sellers or agents. This guide will walk you through what mortgage pre-approval means, how to get it and the documentation required.
What is Mortgage Pre-Approval?
Mortgage pre-approval is an official document issued by a bank or lender stating the amount they are willing to lend you based on a preliminary assessment of your income, creditworthiness, employment status, and financial documents.
It's not the same as final mortgage approval. Pre-approval comes before you finalize your property purchase and is used as proof that you are financially qualified to buy a home within a certain price range.
While not mandatory, mortgage pre-approval is highly recommended for anyone looking to buy property in Dubai. Here's why it matters:
Pre-approval tells you how much you can borrow. This means you won't waste time looking at homes outside your budget or making offers on properties you can't finance.
In a fast-moving market like Dubai, being pre-approved shows sellers and real estate agents that you're not just browsing - you're ready to buy. This can give you an edge over other potential buyers.
Once you find your ideal property, having pre-approval in place can significantly reduce the time it takes to close the deal since a large part of the mortgage process is already completed.
By identifying any red flags early on (like credit score issues or incomplete documentation), pre-approval gives you the chance to resolve them before you commit to a property.
Both UAE nationals and expatriates can apply for a mortgage in Dubai, but eligibility criteria and terms may differ.
Criteria | UAE Nationals | Expats |
---|---|---|
Minimum Monthly Salary | AED 10,000 | AED 15,000 (varies by bank) |
Employment Status | Employed or self-employed | Minimum 6 months in UAE preferred |
Residency | Must be a UAE resident | Must hold a valid UAE residence visa |
Age | 21-65 (at loan maturity) | 21-65 (at loan maturity) |
Credit History | Good repayment history required | Clean UAE credit record preferred |
Note: Self-employed individuals may be subject to stricter income documentation requirements.
Lenders require a set of documents to evaluate your financial profile. Missing or incorrect documents can delay or even derail your pre-approval.
Make sure your documents are up to date and clearly scanned. Some banks may request additional paperwork depending on your financial profile.
In the UAE, the Central Bank sets maximum LTV ratios, which determine the percentage of the property's value that the bank is willing to finance. The remaining amount must be paid as a down payment.
Buyer Type | Property Value | Maximum LTV | Minimum Down Payment |
---|---|---|---|
UAE Nationals | Up to AED 5M | 85% | 15% |
Expats | Up to AED 5M | 80% | 20% |
All Buyers | Above AED 5M | 70-75% | 25-30% |
Off-plan | Depends on lender | 50-60% avg. | 40-50% |
Understanding your LTV helps you plan how much you need for your down payment and what kind of property fits your budget.
How much you can borrow depends on your monthly income, financial obligations, and the bank's lending policies. A general rule is that your monthly mortgage payment should not exceed 50% of your monthly income, including all existing debt obligations (also known as debt-to-income ratio).
You can use a mortgage calculator in UAE to get an estimate of your loan eligibility.
Step-by-Step Guide to Getting Mortgage Pre-Approval in Dubai
Check whether you meet the basic criteria (income level, employment status, residency, credit history).
Prepare and organize your paperwork early. Missing documents are the most common reason for delays in mortgage processing. Use folders or digital uploads to ensure nothing is forgotten.
Different banks offer different interest rates, fees, and policies. It pays to compare:
Once you've chosen your lender, submit your application along with all required documents. Some banks allow you to apply online, while others may require an in-person meeting.
At this stage, the lender will assess your creditworthiness and calculate how much they are willing to lend you.
If your application is approved, you will receive a pre-approval letter stating:
This letter can now be used when negotiating with sellers or agents, making you a much stronger buyer.
While the pre-approval process is designed to be straightforward, challenges can arise. Here are common issues and how to address them:
A low credit score can hinder your pre-approval chances. Here's how to improve it:
Lenders prefer stability. If you have gaps in your employment history:
Incomplete or delayed documentation can slow the process. Use our platform to organize and submit all required documents efficiently.
At Holo, we simplify the complex pre-approval process with:
Getting pre-approved is not just a box to check, it's a smart move that gives you clarity, speed, and leverage in your home-buying journey. Whether you're a first-time buyer or investing in your next property, mortgage pre-approval helps you avoid surprises and shop with confidence.
With Holo, the entire pre-approval process becomes faster, easier, and tailored to your needs. Speak with one of our mortgage brokers to start your pre-approval today.