Thinking of buying a home in Abu Dhabi? It’s a huge milestone, but let’s face it, securing a mortgage can feel a bit overwhelming at first. Don’t worry! With the right plan and a bit of guidance, the process can be much smoother than you might expect. Let’s break it down step by step, so you know exactly what to expect and how to prepare.
Who Can Apply for a Mortgage?
First things first—are you eligible? Here’s what most banks in Abu Dhabi are looking for:
- Age: You need to be between 21 and 65 years old.
- Income: A steady monthly income of 15,000 AED or more.
- Residency: Both UAE citizens and expats can apply, though the requirements may differ slightly depending on your status.
Sound good so far? Great! Let’s move on.
How Much Down Payment Will You Need?
Here’s where it gets a little more specific. The amount you need to pay upfront depends on two things: your residency and the value of the property.
- UAE Nationals:
- 15% for properties under 5M AED.
- 30% for properties over 5M AED.
- Expats:
- 20% for properties under 5M AED.
- 35% for properties above 5M AED.
- Off-Plan Properties: Be ready to pay at least 50% as a down payment.
To make things even easier, try our personalized mortgage calculator—it’s designed to guide you every step of the way. Got it ready? Great! Let’s keep moving.
How Do You Register Your Mortgage?
Congrats, your mortgage is approved! Now, let’s get it registered so it’s all official. This part’s straightforward, thanks to the TAMM portal.
Here’s how it works:
- Submit your application and mortgage contract online.
- Pay the registration fees:
- 0.09% of the mortgage value for private loans.
- 0.5% for government housing loans (capped at AED 1,000,000).
- Wait for approval—and voilà, your mortgage is registered!
Things to Think About Before You Apply
Before you dive in, here are some tips to make your mortgage journey a breeze:
- Compare Interest Rates
Not all rates are created equal. Check out different banks, and if you’re interested in Sharia-compliant financing, Abu Dhabi Islamic Bank is a solid choice. - Pick the Right Loan Tenure
Do you want lower monthly payments or a lower overall cost? Loan tenures in Abu Dhabi can go up to 25 years, so find the sweet spot that works for your budget. - Factor in Extra Costs
Don’t forget the fees—processing, valuation, and maybe even early settlement charges. They can add up quickly, so plan ahead. - Get Pre-Approved
Want to stand out to sellers? Get pre-approved. This way, you’ll know exactly how much you can borrow before you start house hunting. - Read the Fine Print
Fixed or variable rates? Flexible repayment options? Always know what you’re signing up for.
Cash vs. Mortgage—Which Is Right for You?
If you’ve got enough savings, paying upfront can be tempting to skip the long-term commitment. But for most people, a mortgage is the smarter move, letting you own your dream home while keeping your savings intact. Explore our Guide on property financing in Abu Dhabi to learn more!
Taking the leap toward homeownership is exciting, and we’re here to make sure it’s smooth sailing for you. Got more questions? Call us at 800-2732 or drop us an email at enquiries@cromptonpartners.com. Let’s turn your homebuying journey into a stress-free success!
