How to Get a Mortgage Pre-Approval in Dubai: Costs, Timelines, and Benefits

What is mortgage pre-approval?

Essentially, mortgage pre-approval is one of the first steps you will take while successfully applying for a property mortgage in Dubai. While most people understand what a mortgage means, many often ask, “What does pre-approved mean for a mortgage?” 

Obtaining the pre-approval for a home mortgage essentially confirms that the bank has agreed that you meet their criteria for a mortgage, and will indicate the approximate loan amount that they would be willing to lend you.

Whilst this is an important step, you should bear in mind that a mortgage pre-approval should not be considered a legally binding commitment from the bank. Rather, it is an evaluation and approval of your financial position - which confirms your likely eligibility for a mortgage. 

Meeting the pre-approval criteria will help you not only obtain a mortgage but also your dream home in Dubai. 

Key benefits of mortgage pre-approval

Before understanding when to get pre-approved for a home loan or the cost of mortgage pre-approval, let us go through certain benefits that this step may offer for you as a home buyer. 

• With a mortgage pre-approval in place, you will know how much the bank is willing to lend you. This, in combination with your deposit amount will tell you how much budget you have for buying a property. This will help you considerably narrow down your search and search time. 

• After getting the mortgage pre-approval, you will have a large part of your finances in order and you will know what fees and repayment amounts you can expect in future based upon the mortgage amount. This will help you plan your finances. 

• Upon getting your mortgage pre-approval, you will be in an excellent position to communicate with your real estate agent about your budget, allowing them to help you shortlist properties that meet your criteria.

• When sellers see that you’ve secured a mortgage pre-approval, they’ll know your finances are in order, making you a serious buyer. This strengthens your negotiating position and increases your chances of securing your ideal property.

• Having your mortgage pre-approval beforehand will allow you to place an offer immediately on a property you like. Often, many buyers lose out on a property because they did not apply for pre-approval and someone else placed an offer whilst they were waiting to receive it. 

What documents are required for mortgage pre-approval?

Having understood what “pre-approved” means for a mortgage and its several benefits, we proceed to another important aspect - the documentation. 

Submitting the correct documentation to obtain mortgage pre-approval is very important, as any errors can delay the process of obtaining a mortgage and your home. 

The documentation requirements for pre-approval differ for salaried and self-employed individuals. 

Here are the documents you should submit for mortgage pre-approval as a salaried individual: 

• A valid visa and passport 

• A valid Emirates ID 

• Salary slips for employment proof 

• Bank statements and payslips for the past three to six months (depending on the bank’s criteria) 

• Disclosure of all liabilities, including personal loans, car loan payments, or credit card bills. 

The required documents for self-employed individuals are: 

• A valid visa and passport 

• A valid Emirates ID 

• A valid trade license copy 

• Audited finances of the past two years 

• Memorandum of Association (MoA) and incorporation documents 

• Disclosure of all liabilities, including personal loans, car loan payments, or credit card bills.

Bear in mind that you may be required to submit additional paperwork depending on the bank’s varying requirements. 

Mortgage pre-approval costs in Dubai

One of the most common questions buyers ask is: What is the cost of mortgage pre-approval?

In most cases, there is no fee for mortgage pre-approval in Dubai. Many banks offer this service free of charge as part of the home loan process. However, on rare occasions, lenders may charge a non-refundable application fee to assess your eligibility before issuing a mortgage pre-approval.

It’s important to note that even if there is no mortgage pre-approval cost, other fees may still apply later in the mortgage process. These can include valuation fees, property registration fees, and insurance or life cover premiums depending on the bank's requirements.

When to get pre-approved for a home loan

Before going house-hunting, it is important to know when to get pre-approved for a home loan. The answer is simple. If you have decided that you want to buy a property, and a mortgage is the best financing option for you, it is advised to apply for a mortgage pre-approval before you start your property search.

Your pre-approval letter will be valid for 30 to 90 days, giving you time to search for your perfect property.

If you combine house hunting with the pre-approval application process, it may not only get very overwhelming but may cause you to lose focus on two highly important steps in your journey as a home buyer. 

How to apply for mortgage pre-approval in Dubai?

Applying for a mortgage pre-approval in Dubai can be a relatively straightforward process. Here are some steps you can follow while applying for it:

1. Research the banks that offer property mortgages and consult with them to understand if their mortgage options align with your requirements. It is highly recommended that you work with a mortgage broker who will have access to all mortgage providers and will match you to the most suitable one for your circumstances.

2. Ensure that you meet the eligibility criteria before applying for pre-approval, which is: 

   1. You are a UAE national or resident (non-residents can also apply for mortgages in Dubai - they have a different process to follow). 

   2. You are aged between 21 and 65. 

   3. You have a monthly income of AED 15,000 (salaried) or evidence of a healthy turnover if self-employed.

3. Collate all the aforementioned documentation and submit it to the bank authorities for evaluation. Again, consider working with a mortgage broker who can do this on your behalf.

4. Find the ideal mortgage type for you. Dubai banks offer varied property mortgage options. Evaluate your options and select the one that best fits your circumstances. 

5. After your case has been evaluated and approved, you will receive a mortgage pre-approval letter from the bank. 

How long does it take to get a mortgage pre-approval letter?

Many people often ask, “How long does it take to get a pre-approval letter for a mortgage?”

This is a common question among homebuyers. The good news is that it typically doesn’t take long. If all your documents are in order, you can expect to receive your mortgage pre-approval letter within five to seven business days, giving you the green light to begin your property search with confidence.

Ready to Get Mortgage Pre-Approval in Dubai?

Getting mortgage pre-approval is one of the smartest first steps you can take when buying a home in Dubai. It gives you clarity, confidence, and credibility and can help you move quickly when the right property comes along.

At Engel & Völkers, our expert mortgage advisors are here to guide you through the process and help you secure the best home loan for your needs. Whether you're a resident or a non-resident, salaried or self-employed, we’ll ensure your mortgage pre-approval is fast, smooth, and tailored to your circumstances.

Get started today, speak to one of our independent mortgage advisors to find out how much you can borrow and take the first step toward owning your dream home in Dubai.