How to get a mortgage on Dubai property

16 February, 2008

A lot of people ask me about getting mortgages on property in Dubai, so I thought I should shed a little light on the subject.

With so much freehold on the Dubai market, and something for all different types of income level, be it modest or very high, putting the finance in place to take advantage of the market is key. Over recent years the Dubai property market has benefitted not just from better regulation and property law, but also from increasing choice when taking out a mortgage.

The old situation
Early buyers looking for a mortgage were severely restricted in doing so because just about the only options were the financial subsidiaries of the two main developers Emaar and Nakheel. That was about it, as they were the first property developers on the market, and there was no stable law in place.

Fast forward to now
These days, the government has completely opened up the property mortgage market, making it a more competitive place and of huge benefit to buyers. A lot more banks are offering mortgages at competitive rates. The choice of lenders includes RakBank, HSBC, National Bank of Dubai, Mashreq Bank, Barclays and many, many more. Here is a great mortgage table which outlines some of the options.

If you are serious about making money from property investments, and you're lookingat Dubai speak to me and I will put you directly in touch with my mortgage experts who can help.

Dubai Land Department committed to property consumer protection

Dubai Land Department (DLD) yesterday signed an escrow account agreement with National Bank of Dubai (NBD).

The decision to establish an escrow framework for property developers further enhances the confidence of investors and end users in the long-term stability of the real estate sector in Dubai. Proactive steps to regulate the real estate industry underlines Dubai's committment to ensure the highest of standards are adhered to while raising the bar of the industry and encouraging both domestic and international investment.


The signing ceremony took place in the offices of DLD, where Juma'a Bin Humaidan, Assistant Director General, Dubai Land Department and Rajesh Thapar, Group Head of Corporate & Institutional Banking, National Bank of Dubai signed the agreement.

Through this agreement, NBD has been appointed as an official escrow account bank by the DLD. The signing appoints NBD as one of the few banks in Dubai to provide escrow accounts designed to protect consumer payments on new and in the pipeline properties in Dubai.

Under the recently promulgated Law No. 8, property developers in Dubai must place project receivables in escrow, or trust, until predetermined development milestones are achieved and independently verified by the escrow account bank. These escrow accounts are regulated by the Dubai Land Department.

NBD's Retail Banking is ranked amongst the top 3 mortgage finance providers in the UAE, offering a suite of mortgage finance solutions and a reputed panel of 14 developers to choose from. This appointment will complement NBD's leading position in the mortgage finance market, adding value both to its customers and its property development partners.

Property as a pension

For many people buy to let is becoming a mainstream alternative to traditional investments such as pensions and the stock market. Mintel reports that 3% of homeowners are considering buying another property to let by 2010, doubling the number of current landlords.

Despite the tax relief benefits of traditional pensions, many people today are exchanging their pension for property as a long term wealth strategy. With pensions not offering their previous returns and the real cost of living accelerating at an alarming rate, property investment continues to grow in popularity as an alternative investment vehicle which produces solid returns.

In the UK in 2006, buy to let accounted for 11% of all mortgage lending figures and the Council of Mortgage lenders (CML) revealed the buy-to-let sector turnover amounted to £38.4 billion of all mortgages processed. Mortgage lenders have grown more confident in the buy-to-let sector in the UK and abroad, and they are currently offering more attractive buy-to-let mortgage deals than ever.

Many investors are seeing the benefits of investing in bricks and mortar and good returns in the buy-to-let market continue to be achieved by the astute investor, as long as you manage your risks, and conduct thorough due diligence.

National Bank of Dubai expands mortgage lending to UK customers

National Bank of Dubai (NBD) has today announced a tie up with the leading United Kingdom based mortgage adviser, John Charcol, to provide finance to UK residents interested in purchasing residential properties in UAE.

NBD is one of Dubai’s leading banks and among the top mortgage finance providers in the UAE. The mutually exclusive tie up with John Charcol will not only provide mortgage finance to UK residents investing in UAE but will also provide re-financing to UK residents who have already invested in the Dubai residential property market. On offer are mortgages for residential properties, both completed and under construction, from 14 reputable developers who are approved by NBD.

“Today’s announcement represents NBD’s continuing commitment to the mortgage business in the UAE,” said Suvo Sarkar, Group Head – Retail Banking, NBD. “ As one of the leading retail banks in the country, this tie up with a John Charcol is part of NBD’s innovative approach to providing flexible products to a maturing home finance market, and to diversifying our customer base.” continued Mr. Sarkar.

John Charcol was established in 1974 and is currently the leading UK independent mortgage adviser with a choice of 4,000 mortgages from over 100 UK lenders.

Duncan Banks, Sales Director, John Charcol stated “This is an exciting advance for us. We are delighted to be working with NBD on delivering another innovative and unique solution for UK residents and their financial needs. It’s a great start to our new operation which will be opening in Dubai shortly and represents our first overseas expansion”.

Borrowers in UK will benefit from the consultation expertise of John Charcol and the real estate market experience of NBD. NBD’s mortgage products under this partnership have been specifically designed to fit the needs and requirements of the UK market borrower, with competitive pricing, financing up to 70%, fast application processing and customer service arrangements from within the UK.

John Charcol has won numerous awards during its 33 years in the industry including its most recent awards “Best Mortgage Broker 2007” awarded by Mortgage Strategy and “Best Overall Mortgage Broker 2007” by What Mortgage.

NBD was recently awarded the “Best Retail Bank in the UAE” award by The Asian Banker. It offers a comprehensive range of retail lending products including mortgage loans, auto loans, personal loans, credit cards and loans for business finance to UAE nationals. In the area of mortgages, it provides home loans, office loans, home re-finance loans and loans for self-construction of property.

Press Release – Dubai, UAE, 5 July 2007