Mortgage Pre-Approval in Dubai: How It Works and How Long It Lasts

A mortgage pre-approval is a bank’s written statement of how much it is prepared to lend you, based on your income, your debts and your credit report. You get it before you choose a property, so you search knowing your budget, and sellers and agents take your offer seriously.

It is not the mortgage itself. The bank still has to approve the specific property, and a few things can change between pre-approval and the final offer.

Why get one before you start viewing

• You know your real budget, not an online estimate.
• Your offer is stronger. A seller choosing between buyers prefers one whose finance is already in place.
• You find problems early. A credit issue or a debt that cuts your borrowing is better discovered before you have paid a deposit to secure a property.
• It shortens the time from offer to transfer, because most of the bank’s checks are already done.

Documents banks ask for

• Passport, residence visa and Emirates ID.
• Salary certificate addressed to the bank, and recent payslips.
• Bank statements for the last three to six months.
• Details of existing loans and credit cards.
• For the self-employed: trade licence, Memorandum of Association, and personal and company bank statements, usually for six to twelve months, with audited accounts at some banks.
• Non-residents: proof of income and bank statements from their home country, and a credit report where one exists.

The bank also pulls your report from the Al Etihad Credit Bureau (AECB). Missed payments, or a high balance on your cards, reduce what it will lend.

How long it lasts and what it costs

Most pre-approvals in Dubai are valid for 60 days, and some banks give 90. If yours expires before you find a property, it can usually be renewed with up-to-date bank statements and payslips.

Many banks issue pre-approval free of charge. Some charge a small processing fee, which may not be refundable. The larger arrangement fee is paid later, when you proceed to the full mortgage.

From pre-approval to final offer

1. Pre-approval issued with a maximum loan amount.
2. You agree a price and sign the sale agreement, usually with a 10% deposit cheque held by the agent.
3. The bank values the property.
4. The bank issues the final offer letter, which you sign.
5. The transfer takes place at the trustee office, where the bank pays the seller and the mortgage is registered.

Why a pre-approval can still fall through

• The valuation comes in below the price. The bank lends on its own valuation, so you cover the difference in cash.
• The property does not meet the bank’s criteria, for example because of the building, the developer or the property’s age.
• Your circumstances change. A new job, a pay cut, a new loan or a higher card limit after pre-approval can all reduce the offer.
• The pre-approval expires during a long negotiation.

One bank or several?

Every application shows on your credit report, so applying to bank after bank yourself is not a good idea. Going through an adviser lets your profile be compared across lenders first, so the pre-approval comes from the bank most likely to give you the best final terms.

Use our mortgage calculator to see a monthly payment for your budget. When you are ready, we compare banks against your income and circumstances, arrange the pre-approval and stay with the application until the transfer.