There are a number of lenders offering finance in Dubai, companies such as HSBC, Tamweel ( http://www.tamweel.ae/ ), and Amlak ( http://www.amlakfinance.com/ ). We do not represent these companies, nor do we make any warranty regarding them.

As with all real estate matters, seek professional advice when looking at finance options.

Interest rates

The UAE currency, the Dirham, is pegged to the US dollar at around 3.675: 1. As a result, interest rates follow US rates. However, rates in the UAE fluctuate and some local mortgage providers can alter interest as they wish (sometimes referred to as profit rates). Interest rates for mortgages depend also on what kind of property you are looking for.

The typical borrowing rate is about 7.5% if you are borrowing in UAE Dirhams.

Working with local banks

Some local banks will offer mortgage services, but check that they are not offering you too much loan. They will base the loan on a multiple of your current salary. Being able to repay this will depend on holding your job.

Using Offshore Companies

An option for buying a property in Dubai is to use an offshore company as a vehicle. These can be set up fairly cheaply, and an offshore company may make it easier to deal with costs when selling or leasing. This may also help avoid potential difficulties in the event of your death and the transfer of your property to your heirs.

At the present time, offshore companies cannot borrow from UAE-based lenders. However, this may change in future because of the demand levels for this facility.

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