If you’re looking into non-resident home loans (mortgages) in the UAE, here’s a breakdown of how they work, typical interest-rates, eligibility, and key considerations — so you (in Ahmedabad) can assess whether this might suit you.
What’s available for non-residents
“Non-resident” here means someone who does not reside in the UAE (i.e., living abroad) but wants to purchase property in the UAE and takes a mortgage there. It’s possible. For instance:
- HSBC UAE offers mortgages to non-residents.
- First Abu Dhabi Bank (“FAB”) has a “Mortgage Loan for Non-UAE Residents” product.
- Abu Dhabi Commercial Bank (ADCB) notes their financing for non-residents is up to ~50% of property value (i.e., non-resident LTV lower) and interest rates from “4.74% from” in one excerpt.
So yes — non-residents can get home loans in UAE, though with more stringent criteria and often less favourable terms than for residents.
Typical interest rates & terms
Here are current/typical figures for interest (or profit rates) and other key term-factors:
Interest / profit rate levels
One HSBC example: loan amount AED 1,000,000 for 20yrs, interest rate “6.18%” (3-month EIBOR + margin) for a variable rate case.
The average mortgage interest rate for residential properties in Dubai as of 2025 is around 3.89% to 4.99% per annum.
For non-residents specifically, since banks often treat them as higher risk / less favourable, rates will likely be higher and LTV lower. For example, some sources say non-resident LTV ~50-60%.
Loan-to-Value (LTV) & down payment
- For non-residents the LTV is often lower: e.g., some banks offer up to ~50% financing (i.e., you need ~50% down) for non-residents.
- Some guidelines indicate a down payment of 35-40% for many non-resident mortgages
- For properties above certain value (e.g., AED 5 million) the down payment requirement may increase.
Tenure / repayment period
- Many banks allow up to up to 25 years for loan term even for non-residents (depending on age, property type) for residents; for non-residents the term might be shorter or age cut-offs stricter
- Banks may link interest to benchmark rates such as EIBOR (Emirates Inter-Bank Offered Rate) + margin.
Eligibility & special conditions
Here are typical eligibility and special conditions you should be aware of:
- You’ll need to show proof of income (salary or self-employment) from your home country (since you live abroad) and possibly more documentation.
- Some banks have lists of eligible countries for non-resident applicants.
- Age limits may apply (e.g., for loan end date).
- Property requirements: often the property must be freehold, completed, in approved projects/developers etc.
- Fees: processing, valuation, registration for mortgages in UAE will apply.
- For Islamic financing: profit-rate model rather than interest; e.g., Dubai Islamic Bank offers Non-Resident Program with EIBOR + margin
Important things to watch / pitfalls
Since you’re abroad (in India) and considering UAE property + mortgage, here are special caution items:
- The rate you get may be higher than resident rates, so compare across lenders.
- Currency risk: Your income may be in INR, payments will be in AED (or USD pegged). If your home-country income weakens or INR/AED shifts, repayments may get more burdensome.
- If the property is an investment (rent out) vs your own stay: Some rules differ for buy-to-let vs owner-occupier.
- Legal/regulatory: Understand property purchase laws for foreigners in the UAE, and mortgage law for non-residents.
- Exit strategy: If you default (or need to sell) what are the implications? Non-resident status may complicate things.
- Early settlement / refinancing penalties: Check these.
- Be clear on fixed vs variable rate: If you pick variable, your repayments could go up if EIBOR rises.
- Ensure property is eligible under the bank’s scheme (developer approved, freehold zone, etc)
- Talk to a UAE-based mortgage broker/advisor who is familiar with non-resident mortgages: makes it smoother.
Summary for your scenario (India → UAE)
Given you are in Ahmedabad (India), and you’re foreign / non-resident in UAE context:
- Yes you can apply for a UAE mortgage as non-resident.
- Expect you’ll need a higher down payment (e.g., 35-50% of the purchase price).
- Interest rates: competitive globally but possibly higher than for residents; currently the average around ~3.9-5% for residents; non-residents might see somewhat higher effective rates.
- Ensure your income documentation (India) is strong and acceptable by the UAE bank.
- Consider currency/exchange risk and local UAE legal/regulatory issues.
