Mortgage & Finance

Mortgage Process Explained

From eligibility to approval — here's how it works.

Updated: September 2026 6 min read

The mortgage process in the UAE has six stages: check what you can afford, get pre-approval, agree on a property, have it valued, accept the bank's final offer, then complete the transfer and register the mortgage with the land department. This article walks through what happens at each stage and what to check. For the lending limits themselves, see our UAE Mortgage Guide.

1. Check what you can afford

Start with two numbers: the cash you need up front and the monthly payment you can carry. The deposit must come from your own money, not a personal loan or credit card, and it sits on top of the purchase costs such as the 4% DLD transfer fee. Banks test your monthly payment at 2 to 4 percentage points above the actual rate, so test it the same way yourself. The mortgage calculator on RealtyReview.ae gives the monthly payment for any price, deposit, rate and term.

2. Get pre-approval

Pre-approval (also called approval in principle) is the bank's conditional view of how much it may lend you, based on your income, existing debts and documents. It lets you make offers knowing your budget. It is not a final approval: the bank still has to value the property and complete its checks. How long it lasts and whether there is a fee is up to each bank, so ask.

Banks must collect a full history of your income and liabilities and verify it.
Applying to several banks is allowed. Compare the fee schedule, not only the rate.
A mortgage broker can apply on your behalf; ask how they are paid.

3. Agree on a property

For a resale property you make an offer and sign a memorandum of understanding (MOU) with the seller, usually with a deposit cheque. It is common practice to make the MOU conditional on your mortgage being approved; without that clause you risk losing the deposit if the loan falls through. For off-plan, you sign the developer's sale and purchase agreement (SPA). Off-plan loans are capped at 50% of the value, and the bank pays the developer only after your own share has been paid, against construction milestones confirmed by an independent party.

4. Valuation

Before it commits, the bank must have the property valued on site by a qualified valuer who is independent of you, the seller, the developer and the bank's lending decision. The maximum loan is a percentage of this valuation. If the valuation comes in below the agreed price, the bank lends against the lower figure and you pay the difference in cash, or renegotiate the price.

5. Read the final offer

Once the valuation and checks are done, the bank issues a final offer letter and loan documents. CBUAE rules say they must set out the loan amount, term, instalment, rate, insurance requirements, disbursement method and a clear prepayment policy, with all fees in a separate schedule and the total cost of the loan over its life. You sign each page and receive a copy signed by both sides.

What rate applies after any fixed or introductory period?
What is the early settlement fee? The Central Bank caps it at 1% of the balance or AED 10,000, whichever is less.
Which insurance policies are required, and can you use your own provider?
Are there conditions you must meet before the money is released?

6. Transfer and mortgage registration

On transfer day in Dubai, the bank issues its payment for the seller and the mortgage is registered in the bank's favour at the same time as the sale, either online by the bank or at a Real Estate Registration Trustee centre. The DLD asks for a letter from the bank and three copies of the mortgage contract signed by both parties. The registration fee is 0.25% of the loan amount plus AED 250 for the title deed. For off-plan, the developer registers the sale and mortgage together on Oqood.

If the seller still has a mortgage

This is common on resale properties. The seller gets a liability letter from their bank showing the outstanding amount. At the trustee centre, the debt is paid to the seller's bank by manager's cheque, the rest goes to the seller, and the sale is completed once the seller's bank issues a mortgage release letter. Your own mortgage is then registered.

After you complete

Repayments start on the schedule in your contract. The bank can't change your loan terms without your written consent and must give two months' notice of fee changes. When the loan is repaid, you apply to the DLD to release the mortgage, which costs AED 1,000 plus the title deed fee. Lending limits, eligibility and risks are covered in the UAE Mortgage Guide.

Frequently asked questions

What is mortgage pre-approval in the UAE?

Pre-approval, also called approval in principle, is the bank's conditional view of how much it may lend you, based on your income, existing debts and documents. It is not a final approval: the bank still has to value the property and complete its checks, and each bank sets how long it lasts and any fee.

What happens if the bank valuation is lower than the purchase price?

The bank lends against the lower valuation, so you pay the difference in cash or renegotiate the price. The valuation must be done on site by a qualified valuer independent of you, the seller, the developer and the bank's lending decision.

Can I buy a property that still has a mortgage on it?

Yes, this is common on resale properties. The seller gets a liability letter showing the outstanding amount, the debt is paid to the seller's bank by manager's cheque at the trustee centre, and the sale completes once that bank issues a mortgage release letter. Your own mortgage is then registered.

Should my MOU be subject to mortgage approval?

It is common practice to make the MOU conditional on your mortgage being approved. Without that clause, you risk losing the deposit if the loan falls through.

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