Dubai is like the superstar of cities, offering an incredible lifestyle with so much to do and see. Whether it is amazing attractions or endless activities, Dubai has it all.

So, if you have been dreaming of owning a piece of Dubai, now is your chance! it is a perfect time to jump into the property market and take advantage of the affordable mortgages available. But before you unlock the doors to your dream home, there is one crucial question to answer: What salary do you need to secure a mortgage loan against your property in Dubai?


What Is a Loan Against Property?

A loan against property, also known as a mortgage loan or home mortgage loan, is a type of loan where you use your property as collateral to borrow money from a bank or financial institution. Essentially, you are leveraging the value of your property to secure a loan, which can be used for various purposes such as buying a new home, funding a business venture, or even renovating your existing property.


How a Property-Based Loan Work?

In Dubai, expats have the advantage of being able to borrow up to 70% of the total value of their property when opting for a loan against it. This 70% allowance provides expatriates with significantly more financial flexibility compared to traditional loans, where banks typically limit borrowing to around 50-60% of the property’s estimated value.


Minimum and Maximum Salary for Expats in Dubai to Get Loan Against Property

In order to qualify for a loan against property in Dubai, if you are an expat then you must meet specific salary requirements set by lenders. The minimum salary threshold stands at AED 5,000 per month, ensuring that borrowers have a stable income to support their loan obligations. On the other end of the spectrum, if you are those seeking higher loan amounts, a maximum salary of AED 1,00,000 per month or more maybe necessary. However, it is important to note that these figures are not set in stone and can vary depending on the lender’s criteria, the type of loan being applied for, and individual financial circumstances.

Additionally, lenders typically require expatriates to have a stable employment history, usually working for a reputable company for at least 3 years. This demonstrates financial stability and reduces the risk for the lender. Factors such as credit score, financial history, and any additional assets that can be used as collateral will also be taken into consideration during the loan application process.


How Much of a Loan Can You Take Out to Buy a House in Dubai?

The amount of loan you can obtain to purchase a home in Dubai is influenced by various factors, including your salary, qualifications, and the value of the property you wish to purchase. For properties priced below AED 5 million, expats can typically borrow up to 80% of its value. However, for properties exceeding the AED 5 million mark, the loan-to-value (LTV) ratio decreases to 70%.


How Expat’s Finances Are Affected by the Loan Against Property

Taking out a loan against your property can have significant implications for your financial health. While it provides a convenient way to access funds for various purposes, it also comes with the responsibility of repaying the loan amount along with interest over a specified period.

Before committing to a mortgage loan, it is essential to carefully consider your ability to make timely payments and ensure that you are not overextending yourself financially. Failure to repay the loan can result in the loss of your property and have long-term consequences for your credit score and financial stability.

If you are considering buying a home in Dubai or need financial assistance, it is crucial to understand the requirements and implications of taking out a mortgage loan against your property. Consult with financial experts or mortgage advisors to explore your options and make informed decisions that align with your goals and financial capabilities.