Get a loan in UAE as a resident

[bigbite100]

Hello,

as someone who is General Manager of a FZCO and recieves salary from this company (non WPS), is it possible to get a loan for buying real estate abroad?

And is it possible to get a unconditional loan, so they dont ask what to use it for?

Which banks/companies have the best interest rates for that? Does one need to be inside the country for this? What are the current interest rates?

It should be a short term loan (1-2 years and around 100k EUR).

Thank you.

 

[Martin Everson]

bigbite100 said:
as someone who is General Manager of a FZCO and recieves salary from this company (non WPS), is it possible to get a loan for buying real estate abroad?
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If you have a history of income in principle you can get a loan but it depends on the bank.

bigbite100 said:
And is it possible to get a unconditional loan, so they dont ask what to use it for?
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Unless your asking for a Lombard Loan as (i.e a wealth management client) I don't think any bank is gonna give unsecured loans no questions asked 😕.

bigbite100 said:
Which banks/companies have the best interest rates for that? Does one need to be inside the country for this? What are the current interest rates?
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It totally depends on the bank and there is not one interest rate for loans or even an average one as each bank is different. You can see below the rates for example if you were a wealth management client at SC UAE.

https://www.sc.com/ae/investments/wealth-lending/
Maybe you have assets you can leverage to get a loan against them. I don't know your personal situation however.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[karishi]

bigbite100 said:
Hello,

as someone who is General Manager of a FZCO and recieves salary from this company (non WPS), is it possible to get a loan for buying real estate abroad?

And is it possible to get a unconditional loan, so they dont ask what to use it for?

Which banks/companies have the best interest rates for that? Does one need to be inside the country for this? What are the current interest rates?

It should be a short term loan (1-2 years and around 100k EUR).

Thank you.
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this is something that is of interestto me too, my question is, why don't you ask for a Loan abroad? My case would be to get 50% of the loan for a house

 

[suzy]

karishi said:
My case would be to get 50% of the loan for a house
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I hope you don't want to invest in 10 million house then!

 

[karishi]

suzy said:
I hope you don't want to invest in 10 million house then!
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No, just wanted to buy one. I have been told that since my income comes from outside the UAE I would be treated as non resident for mortagage purposes, so need 40% downpayment and higher rates

 

[jorge]

karishi said:
I would be treated as non resident for mortagage purposes, so need 40% downpayment and higher rates
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Did you get the loan or asked to get the loan? would like to learn more

 

[karishi]

jorge said:
Did you get the loan or asked to get the loan? would like to learn more
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I asked holo.com and they told me that if you are resident in the UAE and your money comes from the UAE, you need to put 20% downpayment and you can make a mortagage for the remaining 80% if you qualify. If you are resident in the UAE but money comes from abroad is 40% downpayment and slightly higher rates

 

[bigbite100]

Just wanted to update on this - any other experiences? Whats your opinion to use loans for investing in real estate in Dubai?

 

[bigbite100]

another follow up 🙂

 

[cer955]

bigbite100 said:
Just wanted to update on this - any other experiences? Whats your opinion to use loans for investing in real estate in Dubai?
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I can confirm. Holo.com can provide mortgages to residents and non-residents.
It does not really depends on your residency status - more on your employment status.

Resident loan is usually given to employees: if you are hired in a local company and get salary every month, on time, then you may get a loan up to 80% of the value of the house.
That also works if the company is yours, but timely salary payment is a requirement and you need some history - iic it's at least 6 months or 1 year of stable salary.

For everyone else, banks will usually finance 50% of the value of the house, and choice is very limited - some time ago, Mashreq was the only option, not sure now.

If you're resident but your income comes from abroad, or you're not resident, doesn't really matter: you will be treated as non-resident. They prefer a stable 30k/month income from a local company than a 5M/yearly income from an offshore company.