FAQs About Mortgages

Scheduling a consultation with FCMB is easy. Simply fill out our pre-qualification form or reach out to us directly through our contact page. 
As a trusted, full-service mortgage advisory, we are available 24/7, 365 days a year to offer expert guidance. We’ve built trust and loyalty by providing reliable financial solutions, earning our clients’ confidence in managing their mortgage needs. We are here to make the process smooth, transparent, and stress-free for you.

The mortgage application process usually takes 2 to 3 weeks, depending on the bank and the facility. Sometimes, based on the complexity and individual bank requirements, these details may vary.
To ensure a smooth experience, we recommend reviewing the Pre-approval documents and gathering them in advance. Ideally, having all the necessary paperwork ready will help streamline the process. To start, the main documents will suffice initially, and the rest can be arranged over time

Yes, in the UAE, early mortgage settlement typically incurs a fee. Most banks charge 1% of the remaining loan balance or AED 10,000, whichever is lower. While this fee can vary by bank, it is important to evaluate whether paying off your mortgage early makes sense for your financial situation. At FCMB, we can help you assess these fees and determine if early repayment aligns with your financial goals.

When applying for a mortgage, consider factors like your credit score, income, liabilities, and the applicable interest rates (including the stress rate). For expats, banks typically allow borrowing up to 7 times the monthly salary, while UAE nationals can borrow up to 8 times. 

In the UAE, fixed-rate mortgages offer an interest rate that remains constant for a predetermined period, typically ranging from 1 to 5 years. After this fixed period, the rate usually transitions, often linked to the Emirates Interbank Offered Rate (EIBOR) plus bank margin.

On the other hand, variable-rate mortgages have interest rates that adjust periodically based on market conditions, directly influenced by EIBOR. This means your monthly payments can vary, potentially decreasing if rates fall or increasing if they rise.  Choosing between these options depends on your financial situation and risk tolerance. It's advisable to contact our mortgage advisors to determine the best fit for you.

The Loan-to-Value (LTV) ratio represents the percentage of a property’s value that can be financed through your mortgage. UAE nationals can qualify for up to 85%, expats typically qualify for up to 80%, and non-residents can generally borrow up to 75%. For Islamic financing, Finance-to-Value (FTV) ratio is used, which works similarly but follows Sharia-compliant guidelines.

Refinancing your mortgage offers several advantages, such as reducing your monthly payments, shortening your loan term, or securing a better interest rate. It can also help you access funds for property upgrades or renovations, purchase another property, eliminate recurring fees, or secure better loan terms. If you are unhappy with your current mortgage terms or service, refinancing can provide a fresh start with better conditions. For more information, visit our Refinancing Page.

An overpayment happens when you pay more than your usual monthly installment towards your mortgage. Different banks have different policies, so the allowed amount varies. This overpayment is calculated as a percentage of your principal loan, and exceeding this allowance might result in a fee. Get in touch with us, and we’ll help you determine the specific limits and policies for your mortgage.

Minimum salary requirements for a mortgage in the UAE typically start at AED 10,000 per month for UAE residents and AED 15,000 (after tax in equivalent currency) for non-residents.

To verify your salary, you'll typically need to provide documents such as a salary certificate, bank statements reflecting the salary deposits, and payslips addressed to the bank. In some cases, banks may also request proof of residency or a copy of your employment contract. For a detailed list of the required documents, please visit our Pre-Approval Documents.

The cooling-off period is a timeframe provided after signing a loan agreement, during which you have the opportunity to reconsider your decision and cancel the loan without penalty. This allows you time to review the loan terms and ensure they meet your expectations.

If you choose to waive the cooling-off period, the loan process can proceed immediately. However, once you use the cooling-off period, you are required to inform the bank of your decision at the end of this timeframe. Failure to do so will prevent the bank from moving ahead with the loan disbursement.

The Final Offer Letter (FOL) is issued by the bank after the property valuation is completed and all pre-approval requirements are fulfilled. This document outlines the binding terms and conditions set by the bank for the borrower to proceed with the mortgage. Once all conditions specified in the FOL are met and the borrower signs the letter along with the associated mortgage contracts, the case moves forward to the disbursement of funds.

Yes, non-residents can apply for mortgages in Dubai. However, the process and eligibility criteria may differ from bank to bank. Typically, non-residents are required to have a strong financial profile, and the maximum Loan-to-Value (LTV) ratio offered is around 75%.

Our team is dedicated to assisting non-residents by simplifying the mortgage application process, guiding you through the eligibility requirements, and finding the best mortgage options tailored to your needs. Whether you are investing from abroad or planning a future move, we ensure a smooth and seamless experience.

Fee financing allows a bank to include a portion of the mortgage-related fees in your loan amount. These fees include the Land Department Fee, Trustee Fee, Real Estate Fee, and Mortgage Registration Fee, however, this varies depending on bank policies. This option helps reduce the initial financial burden, making it easier to manage upfront costs.

If you are considering fee financing or have questions about how it works, feel free to contact us. Our team is here to help you navigate the process and find the best solution for your mortgage needs!

Starting your mortgage application with FCMB is straightforward. Begin by visiting our Pre-Approval Documents page to ensure all required documents are in order. Once this is complete, we recommend filling out our Pre-Qualified Questionnaire to help us better understand your requirements. You will then find one of our team members getting in touch with you to guide you through each step of the process moving forward.

The Emirates Interbank Offered Rate (EIBOR) is the rate at which banks in the UAE lend to each other. Since EIBOR reflects the cost of borrowing between banks, fluctuations in this rate can directly impact your mortgage payments. 

Changes in EIBOR can cause your payments to increase or decrease, as it influences both fixed and variable mortgage rates. At FCMB, we provide daily EIBOR rate updates to help you stay informed about market trends and make more informed mortgage decisions. To stay informed, we recommend signing up for our daily EIBOR updates to track rate changes.

FCMB's Mortgage Calculators are designed to provide you with accurate, real-time information to help you make informed financial decisions. It's simple and convenient, just by entering a few details, you will be receiving all the insights you need.
Quick Calculator: Provides an estimate of your monthly repayments and includes estimates for life and property insurance costs for the full tenure. It also gives a detailed breakdown of your mortgage payments.

Pro Mortgage Calculator:  Estimates your monthly repayment, offers a more detailed breakdown of your mortgage term, and shows how each payment affects your loan balance, interest, and total instalments. It also includes more comprehensive insurance cost estimates.

Loan-to-Value (LTV) Calculator: Determines the maximum loan amount you can secure and shows the maximum LTV percentage based on your property value and residency status.

A variable-rate mortgage is a loan where the interest rate of the loan is variable from the start. The value of the variable rate is determined by referencing a benchmark rate. In the UAE EIBOR is used as a benchmark to determine the variable rate. E.g. Variable rate = 3Month EIBOR rate + 2% markup. I.e. if the 3Month EIBOR rate is 0.4% then the variable rate will be 2.4%. Usually, the variable rate is determined by referencing the benchmark rate on the day the repayment is calculated.

A fixed-rate mortgage is a loan where a specific interest rate is applied for a portion of the loan tenor. In the UAE it is common to see fixed-rate mortgages where interest rates are fixed for 1-5years. After the fixed-rate tenor of the loan expires a variable rate formula will kick in. E.g. 2.5% fixed for 3 years, thereafter 2.1%+3Month EIBOR.

When your fixed-rate period ends, the agreed-upon variable rate will begin. If a high variable rate becomes a concern, it’s common for borrowers to explore a buyout refinancing deal with another bank. 
If you need assistance, please feel free to get in touch with us. We can help you set up a favorable buyout deal with another bank to potentially secure better terms and rates.

These are costs associated when a title of a property is transferred seller to the buyer, in the UAE closing costs usually include a land department fee, property registration fee, real estate agency fee, property valuation fee, and mortgage registration fee.

Yes, property insurance is compulsory to obtain a mortgage in the UAE. Your property insurance varies depending on the mortgage type and the bank you choose. Depending on the mortgage, you may be covered under the bank’s group policy or may need to purchase insurance separately. The mortgage proposal and contracts will outline the specific property insurance requirements.

Yes, Life insurance is compulsory to obtain a mortgage in the UAE. If a borrower passes away or becomes permanently disabled, the life insurance associated with the mortgage will kick in to pay off the outstanding mortgage balance. The insurance is designed to cover the outstanding balance of the loan, ensuring that the financial burden does not fall on the borrower’s family or dependents. 

Closing costs for a mortgage in the UAE can total up to 5-7% of the property value for new purchases. These costs include early settlement fees, which vary depending on the bank. It’s important to review your mortgage proposal and contracts to understand the specific closing costs applicable to your situation.