When applying for a mortgage in the UAE, income and property value matter — but they are not the full picture. One of the most important factors banks assess is your credit score.
At Lion Mortgage, we regularly see otherwise strong applications delayed or declined due to credit-related issues that could have been addressed earlier. Understanding how credit checks work — and how banks interpret them — can make a meaningful difference to your mortgage outcome.
Why Banks Run Credit Checks for Mortgages
A credit check helps banks understand how responsibly you have managed borrowing in the past. It reflects repayment behaviour, existing liabilities, and overall financial discipline.
Because a mortgage is a long-term commitment, banks rely on credit checks to assess risk and ensure borrowers can manage repayments comfortably over time. A stronger credit profile generally leads to smoother approvals and more favourable mortgage terms.
Understanding Credit Scores in the UAE
In the UAE, credit history is recorded by the Al Etihad Credit Bureau (AECB). Credit scores range from 300 to 900 and are calculated based on repayment behaviour across loans, credit cards, and other financial commitments.
As a general reference:
- Excellent: 750 and above
- Good: 650–749
- Average: 550–649
- Below Average: Below 550
Most banks typically look for a minimum credit score of around 620 for mortgage applications. Applicants with scores above 700 are often viewed more favourably and may qualify for better interest rates.
What Happens During a Credit Check
As part of a mortgage application, banks usually:
- Review salary certificates, bank statements, Emirates ID, passport, and visa
- Retrieve the AECB credit report
- Analyse repayment history, late payments, and outstanding liabilities
- Assess affordability against existing financial commitments
- Decide on approval, conditional approval, or rejection
This process allows banks to lend responsibly while also preventing borrowers from taking on unsustainable commitments.
How Your Credit Score Influences the Mortgage You Receive
Your credit score affects:
- Approval likelihood
- Loan amount eligibility
- Interest rates offered
- Repayment flexibility
- Future refinancing or bank-switching options
Even a small variation in credit score can change the overall cost of a mortgage over time.
Credit Issues Banks Pay Close Attention To
Common concerns we see during reviews include:
- Late or missed credit card payments
- High credit card utilisation
- Multiple credit applications within a short period
- Outstanding personal loans
- Unpaid telecom or utility bills
These factors can lower a credit score and raise questions during the approval process if not addressed early.
Preparing Your Credit Profile Before Applying
If you are planning to apply for a mortgage, preparation matters:
- Pay all credit cards and bills on time
- Reduce outstanding balances, especially revolving credit
- Avoid new credit applications before submitting your mortgage file
- Review your AECB report for errors or outdated information
- Maintain stable employment and consistent income
Even a few months of disciplined credit management can strengthen an application.
A Note for Expat Buyers
For expatriates, banks often apply additional scrutiny. While credit score requirements are similar, expats may face:
- Higher down payment requirements
- More detailed income verification
- Higher preferred credit score thresholds
This makes early assessment and planning especially important.
How We Support Our Clients
As independent mortgage advisors, our role goes beyond submitting applications. We work closely with our clients to:
- Review credit profiles before approaching banks
- Identify potential red flags early
- Structure applications correctly
- Compare options across multiple lenders
- Guide clients through each stage of the approval process
This approach helps reduce surprises, delays, and unnecessary rejections.
Credit checks are not just a formality — they are a central part of how banks assess mortgage applications in the UAE. Knowing where you stand and addressing issues early can significantly improve both approval chances and long-term affordability.
For more details, feel free to connect with us for a free consultation. Our team is always available to assist you.
