Excellent question. This is a common point of confusion, so let’s clarify it.
The short answer is: Yes, you can get a mortgage, but your Golden Visa itself is not the collateral. The property is.
Here’s the detailed breakdown:
It’s important to understand the distinction:
1. The Golden Visa (Your Residency Permit): Your Golden Visa obtained through property investment is a residency status. It gives you the long-term right to live in the UAE. It is not a financial asset that a bank can accept as security for a loan.
2. The Mortgage (The Loan): A mortgage is a loan where a specific property is used as collateral. The bank lends you money and in exchange, places a legal charge (a “lien”) on the property’s title deed at the Dubai Land Department (DLD). If you fail to repay the loan, the bank has the right to seize and sell that property to recover its money.
While the visa itself isn’t collateral, holding a Golden Visa can be a significant advantage in the mortgage application process:
• Proof of Stability: A Golden Visa signals to banks that you are a long-term, committed investor in the UAE. This reduces the bank’s perceived risk, as you are less likely to leave the country abruptly.
• Longer Loan Tenure: Because your residency is long-term (5 or 10 years), banks may be more comfortable offering you the maximum loan tenure of up to 25 years (or until you reach a certain age, e.g., 70), just like they would for a UAE national.
• Potential for Better Terms: This perceived stability and lower risk might translate into slightly more favorable interest rates or terms, though this is not guaranteed and depends heavily on your income and credit profile.
To get a mortgage on your property, you must still meet all the standard eligibility criteria:
• Minimum Income: Usually a monthly salary of AED 15,000 or more.
• Loan-to-Value (LTV) Ratio:
o For your first property (if this is your only one): Up to 80% for properties valued below AED 5M, 70% for properties AED 5M and above.
o For a second or subsequent property: Up to 70% for properties below AED 5M, 60% for properties AED 5M and above.
• Debt Burden Ratio (DBR): Your total monthly debt obligations (including the new mortgage payment) must not exceed 50% of your gross monthly income.
• Documentation: You will need to provide:
• Can you get a mortgage? Yes.
• Are you using your Golden Visa as collateral? No. You are using the property itself as collateral.
• Does the Golden Visa help? Yes, it strengthens your application by demonstrating long-term commitment and stability in the UAE.
Your next step should be to contact banks or a mortgage broker, highlight that you are a Golden Visa holder, and get pre-approval based on your income and the value of the property you wish to mortgage.
Recommendation: It is highly advisable to consult directly with Windsor Premier Mortgage Team who specializes in Home Loan products. They can guide you through the specific contracts, compare offers, and ensure the proposal process aligns with your requirements.
