FAQs - Ijarah Mortgage Broker

Frequently Asked Questions

1. How do I start my mortgage application with Ijarah?

Getting started is simple. You can either call us directly, reach out on WhatsApp, or fill out our online contact form. Our advisors will review your requirements, explain your options, and guide you step by step through pre-approval and final approval.

2. How long does the mortgage application process take in the UAE?

On average, the process takes 2–3 weeks depending on the bank, property type, and your documentation. Pre-approval is usually faster and can be obtained within a few working days if all documents are ready.

3. Can non-residents apply for mortgages in the UAE?

Yes, non-residents are eligible to apply. Typically, non-residents can borrow up to 75% Loan-to-Value (LTV), depending on the bank and financial profile. Our team specializes in assisting overseas clients and making the process smooth and stress-free.

4. What is the Loan-to-Value (LTV) ratio, and how does it affect my mortgage?

The LTV ratio is the percentage of the property’s value that banks are willing to finance. UAE Nationals: up to 85% Expats: up to 80% Non-residents: up to 75% A lower LTV means you’ll need a larger down payment but will benefit from smaller monthly installments.

5. What are the differences between fixed and variable mortgage rates?

Fixed Rate Mortgage: Your interest rate stays the same for 1–5 years, giving you stability in monthly payments. Variable Rate Mortgage: Your rate is linked to EIBOR + bank margin, meaning payments may rise or fall with market conditions. Our advisors help you decide which option best suits your risk tolerance and financial goals

6. How does the EIBOR rate affect my mortgage?

The Emirates Interbank Offered Rate (EIBOR) is the benchmark most UAE mortgages are linked to. If EIBOR rises, your payments may increase. If EIBOR falls, your payments may decrease. At Ijarah, we monitor EIBOR daily and provide you with the latest updates so you always know how market changes impact your mortgage.

7. Are there penalties for early mortgage settlement in the UAE?

Yes. Most banks charge either 1% of the outstanding loan balance or AED 10,000 (whichever is lower) for early settlement. However, these rules can vary by bank, and in some cases we can negotiate better terms for you.

8. What documents do I need to apply for a mortgage?

While requirements vary by bank, you’ll generally need: Valid passport, Emirates ID, and visa copy Salary certificate (for employed) or trade license/audit reports (for self-employed) 6 months of bank statements Property details (title deed, sales agreement, or developer documents) Our team will guide you on exactly what’s needed and help prepare everything for faster approval.

9. Is property and life insurance mandatory for a mortgage?

Yes. UAE banks require both: Property Insurance: Protects the property against damage. Life Insurance: Covers the loan in case of unforeseen events. These are usually arranged by the bank but we ensure the costs are fully transparent to you.

10. What are the closing costs for a mortgage in the UAE?

Closing costs typically range between 5–7% of the property value. These may include: Property registration fee Bank arrangement fee Valuation fee Trustee/transfer fee Insurance premiums We provide you with a detailed cost breakdown upfront so there are no surprises

11. Can I refinance my mortgage in the UAE?

Yes. Refinancing (also called “Buyout”) allows you to switch to another bank to take advantage of better rates or reduce your monthly payments. Many clients save up to 30–50% on interest costs by refinancing.

12. What is a Final Offer Letter (FOL)?

Once pre-approval is complete and the property valuation is done, the bank issues a Final Offer Letter (FOL). This legally binding document outlines the loan terms and conditions. Signing it is the last step before funds are disbursed to complete your property purchase.

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