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Commercial Mortgage UAE 2023: 2 out of 3 Commercial Mortgages have compared commercial offers with a Mortgage Comparator, says Lenddoo Mortgages

24 Jan 2023

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Commercial Mortgages have boomed in the UAE in 2022, and continue to show a strong momentum in 2023. Lenddoo Mortgages can support you in the full commercial financing journey. Lenddoo can help you identify, compare and get the best commercial mortgage offers that you are or your business is eligible for.

Schedule a call with one of Lenddoo’s experts to discover applicable offers.

Lenddoo Mortgages is the UAE’s leading commercial mortgage broker.

1First, how are the UAE commercial mortgages typically structured?
A commercial mortgage is a loan that is used to purchase or refinance commercial real estate. The property being financed can be used for business or investment purposes and can include office:
- Building Commercial Mortgage
- Retail centers Commercial Mortgage
- Warehouse Commercial Mortgage
- Hotels or serviced apartments Commercial Mortgage
- Restaurants Commercial Mortgage
- Other mixed-use properties Commercial Mortgage
Commercial mortgages in the UAE typically have variable interest rates and require larger down payments than residential mortgages, and the terms and conditions of the loan will depend on the creditworthiness of the borrower and the income-producing potential of the property.
2What are the UAE banks that offer Commercial Mortgages in the UAE?
In the United Arab Emirates (UAE), commercial mortgages are provided by a variety of financial institutions, including banks, mortgage companies, and specialized real estate finance companies. Some of the major banks in the UAE that offer commercial mortgages include Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD, and FAB.

Additionally, there are several specialized real estate finance companies in the UAE that focus on providing commercial mortgages, such as Tamweel and Amlak Finance. It is important to note that the terms and conditions of commercial mortgages in the UAE may vary depending on the lender and the specific property being financed.

Lenddoo Mortgages says that 2 out of 3 commercial mortgages in the UAE in 2022 were advised or sourced by Mortgage Brokers.

Lenddoo Mortgages can help you identify and compare commercial mortgage offers that you are or your business is eligible for.
3What are the main types of commercial mortgages in the UAE?
In the UAE, commercial mortgages come in 2 types:
- Owner-occupier mortgage
- Commercial investment mortgage
Both commercial mortgages can be born by businesses or by individuals.
4Owner-occupier mortgages in the UAE:
An owner-occupier commercial mortgage is a type of commercial mortgage that is used to purchase or refinance a commercial property that will be used by the borrower as their primary place of business. This type of mortgage is typically used by small businesses such as retail stores, restaurants, and offices that are looking to purchase or refinance the property they currently operate in.
An owner-occupier commercial mortgage has some key features that differ from a standard commercial mortgage. The lender will typically require a lower down payment and may offer more favorable terms, such as a lower interest rate, because the borrower is using the property as their primary place of business. The lender may also consider the borrower's personal credit score along with the business credit score.
5Commercial investment mortgages in the UAE:

A commercial investment mortgage is a type of commercial mortgage that is used to purchase or refinance a commercial property that will be used primarily for investment purposes. This type of mortgage is typically used by investors and businesses that are looking to purchase or refinance a commercial property that will generate income through renting it out or using it as a source of passive income.

The terms and conditions of a commercial investment mortgage may differ from an owner-occupier commercial mortgage. The lender will typically require a higher down payment and may charge a higher interest rate because the property is not being used as the borrower's primary place of business. The lender will also assess the potential income-generating capacity of the property, as well as the creditworthiness of the borrower.
6Important UAE commercial mortgages facts:
Below are the main commercial mortgage considerations:
- Up to 350M Mortgage
- Up to 70% maximum LTV (Few mortgages went up to 80% on an exceptional basis)
- 15Y maximum tenor
- Variable rates mainly (defined as bank margin + EIBOR)
Lenddoo Mortgages can help you identify and compare commercial mortgage offers that you are or your business is eligible for.

Schedule a call with one of Lenddoo’s experts to discover applicable offers.
7Financing commercial properties as private individuals
Individuals can finance commercial properties in the UAE through a commercial mortgage. However, obtaining a commercial mortgage as an individual can be more difficult compared to a business, as the lender will typically assess the individual's creditworthiness and financial capacity to repay the loan, as well as the income-generating potential of the property.
8Financing commercial properties as businesses

In the UAE, the majority of the commercial properties mortgages are taken by businesses. Businesses can use the commercial property as their primary place of operation (owner-occupier commercial mortgage) or for investment purposes (commercial investment mortgage). A business will typically have to provide financial statements, business plans and VAT certificates to the lender, and the lender will assess the creditworthiness of the business and the income-generating potential of the property before approving a commercial mortgage.

Lenddoo Mortgages can support you in the full commercial financing journey. Lenddoo can help you identify, compare and get the best commercial mortgage offers that you are or your business is eligible for.

Schedule a call with one of Lenddoo’s experts to discover applicable offers.

Lenddoo Mortgages is the UAE’s leading commercial mortgage broker.

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