Ahad Real Estate Development: getting a mortgage as a non-resident

A completed building can be financed; an off-plan project usually cannot, or only through the developer's own payment plan. For a buyer weighing the two, the financing question is often the deciding one — and non-resident terms differ from resident terms in ways worth knowing before you start looking.

What a non-resident can generally expect

• A lower loan-to-value than a resident. Residents borrow more against the same property; non-residents put down a larger deposit. Plan the cash requirement accordingly.
• A shorter term, and an age cap on the borrower at the end of the term.
• A higher rate than the resident equivalent.
• Fewer lenders. Not every bank lends to non-residents, and those that do maintain their own lists of acceptable buildings and developers.
• Documentation. Income evidence, bank statements and a credit report from your country of residence, sometimes attested. This is the part that causes delay, so start it early.

The building matters as much as you do

This surprises people. A bank lends against the property as well as the borrower:

• Some buildings are not on a lender's approved list — age, developer, or a history of disputes.
• Hotel-linked and pooled units are treated differently from ordinary residential, and finance may be unavailable.
• Older buildings can attract shorter terms or lower valuations.
• The valuation, not the price, sets the loan. If the bank values below the agreed price, you fund the difference in cash.

So the sensible order is: get a pre-approval in principle, then check the specific building with that lender, then negotiate.

Costs of borrowing

• Mortgage registration with the land department, a percentage of the loan plus a fixed charge.
• Bank arrangement and valuation fees.
• Life and property insurance, usually mandatory, as an annual cost.
• Early settlement charges, capped but real — check them if you may repay early or sell.

Developer payment plans compared

An off-plan plan is not a mortgage: there is no bank, no valuation and no consumer-credit framework, and the consequences of missing a payment come from your contract. It gives access without a lender's approval, and it removes the protections a lender's due diligence incidentally provides — a bank refusing to lend on a building is telling you something for free.

What to check

• Pre-approval before offering, and the lender's view of the specific building.
• The valuation risk, and how the contract treats a shortfall.
• Total cost including registration, insurance and fees, not just the rate.
• Whether the seller has an outstanding mortgage, which affects the transfer sequence and timing.

Lending criteria and rates change frequently. Confirm current terms directly with lenders rather than relying on any summary.