The Mortgage Process in Dubai: Step by Step

1. Pre-Approval
   Banks provide pre-approval based on your income, creditworthiness, and liabilities. This gives you a budget range and makes property negotiations smoother.

2. Property Selection
   Choose a property registered with the Dubai Land Department (DLD) to avoid legal complications.

3. Formal Mortgage Application
   Once you finalize a property, submit a detailed application along with documents. The bank conducts a valuation to determine the financing amount.

4. Signing the Sales Agreement
   Buyer and seller sign an MoU, typically requiring a 10% deposit.

5. Final Approval and Loan Disbursement
   After final checks, the bank disburses the mortgage, and ownership is transferred at the DLD.

6. Post-Purchase Obligations
   You’ll need to register your mortgage with the DLD and set up regular repayment schedules.

Costs and Fees to Consider

In addition to the property price, buyers should budget for:

• Dubai Land Department fee: 4% of the property value

• Mortgage registration fee: 0.25% of loan amount plus admin charges

• Valuation fee: AED 2,500 – 3,000 (varies by lender)

• Agency commission: Usually 2% of purchase price

These costs can add up, so financial planning is essential. At Crown Finance, we help clients calculate total expenses before committing.

Corporate Tax in UAE and Its Connection to Mortgages

While Dubai doesn’t impose property tax, recent changes in corporate tax in UAE affect businesses and investors indirectly. For example:

• Companies that purchase properties under a business structure must declare rental income and capital gains as part of taxable profits.

• Mortgage payments made on company-owned properties can sometimes be deducted as business expenses, reducing taxable income.

• For individual buyers, corporate tax doesn’t apply directly, but understanding its impact is important for those investing through corporate entities.

By partnering with Crown Finance, clients gain access to not just mortgage expertise but also insights into how tax regulations may shape their investment strategy.

Tips for a Smooth Mortgage Journey

1. Work with Experienced Advisors
   Navigating banking rules, legal paperwork, and valuation processes is easier with guidance from experts like Crown Finance.

2. Compare Banks and Rates
   Interest rates, fees, and repayment terms vary significantly across lenders. Always compare before choosing.

3. Maintain a Strong Credit Score
   Pay off debts on time and avoid excessive credit card usage before applying.

4. Budget for Extra Costs
   Beyond mortgage payments, account for service charges, insurance, and transfer fees.

5. Think Long-Term
   Consider fixed vs. variable interest rates, refinancing options, and early repayment penalties.

Why Choose Crown Finance?

At Crown Finance, we specialize in guiding expats through the complex mortgage process in Dubai. Our services include:

• Eligibility assessments and tailored advice

• Comparing mortgage offers from multiple banks

• Assistance with documentation and compliance

• Guidance on financial planning, including the effects of corporate tax in UAE

• Ongoing support after purchase for refinancing or restructuring

We believe in transparency, efficiency, and making property ownership accessible to all.

Final Thoughts

Securing a mortgage in Dubai can feel complex, but with the right knowledge and professional support, it becomes an achievable step toward homeownership or investment. From eligibility criteria to required documents, every stage of the process demands preparation and attention to detail.

Whether you’re an expat buying your first home or a business exploring investment opportunities under the new corporate tax framework, Crown Finance ensures your journey is smooth, compliant, and financially sound.