Navigating government housing assistance can be confusing, but it doesn’t have to be. Whether you’re building your first home, need a prefabricated home, or want to renovate and maintain your existing home, understanding the difference between grants and loans is the first step. Here’s what you need to know and how to determine if you qualify.
The Mohammed bin Rashid Housing Establishment continues to support Dubai citizens with housing services through two main options: housing grants and housing loans. Each option is designed to meet the needs of applicants based on their income, marital status, and living conditions.
According to the Establishment’s website, its mission is to provide housing services to those eligible, prioritising and addressing their needs, ensuring a decent life for them, and preserving the characteristics and benefits of the residential communities it establishes.
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Who Can Apply?
Dubai citizens can apply for a grant or loan, subject to several eligibility criteria. Housing grants are generally provided to widows, divorcees with children, people of determination, and low-income families who do not own a property registered in their name in Dubai or other emirates. The applicant must be an Emirati holding a Dubai passport, and the property must be located in Dubai.
On the other hand, housing loans are typically granted to citizens with a stable income who are able to repay the loan over a period of time. Applicants must be at least 22 years old, employed in the government or private sector, or self-employed, with proof of income. They must not have previously received housing support from federal or local entities.
Married applicants, especially those with children, are given priority for both types of support. In some cases, separated or divorced individuals may apply jointly or individually, depending on the custody status and court rulings.
According to WAM, the Foundation’s responsibilities include allocating residential land, constructing housing and residential complexes, allocating them to beneficiaries, leasing them, providing soft loans and financial grants necessary for the construction and purchase of housing, and covering the costs of maintenance, additions, or replacement. The Foundation also rehabilitates existing housing for citizens in older areas of the emirate, resettling them in these areas, improving housing services, and undertaking all necessary actions, including the purchase, ownership, reconstruction, or renovation of housing, in coordination with relevant government agencies.
Required documents
Applicants must prepare a set of official documents, including:
A copy of their Emirates ID card and family book
Proof of income (such as a salary certificate or bank statement)
A valid land title deed or signed approval (if applying for construction support)
Marriage certificate (if applicable)
Court documents in the event of divorce or custody
Medical reports if applying under the category of people with special needs
All documents must be submitted through official channels and updated continuously throughout the process.
Financial details
Eligibility is also affected by the applicant’s income. While there is no fixed minimum, grants are typically awarded to those with a monthly income of less than Dh15,000, while loans are granted to those with incomes above this limit, based on their ability to repay. The maximum support provided by the Mohammed bin Rashid Housing Establishment can reach up to Dh1 million, depending on the type of housing product and the assessment of the case.
Financial loans are granted to beneficiaries pursuant to a contract concluded between the Establishment and the beneficiary. This contract specifies the loan amount and its purpose, the method, amount, and duration of the collection guarantee, and any other conditions the Establishment deems appropriate. Regarding collection, financial loans are collected in monthly installments, the amount of which is determined according to regulations and standards. The beneficiary’s monthly income is taken into account when determining the installment amount, and the full loan repayment period must not exceed twenty-five years.
How to apply
The process begins by creating an account on the Mohammed bin Rashid Housing Establishment’s smart platform or using the Dubai Now app. Applicants must complete the online application form and upload all necessary documents. After submitting the application, it undergoes an initial review phase, followed by a technical and financial evaluation.
The Mohammed bin Rashid Housing Establishment also provides advisory support for those unsure of which service is right for them.
The Khaleej Times recently reported that the Foundation had implemented a training initiative for citizens on efficient and sustainable housing construction. Participants were provided with a detailed guide covering housing services, construction guidelines, and smart systems, as well as sustainable home management practices. They also learned how to estimate construction costs, determine an appropriate budget, choose the right home dimensions, and align the home design with the family’s needs and financial resources.
In addition, participants were introduced to the differences between building a new home and purchasing a ready-made home, as well as an overview of available financing options.
Types of housing support
The Mohammed bin Rashid Housing Establishment offers a variety of housing grants and loans, designed to meet the various stages of a citizen’s housing search journey.
Among the most common types of grants are:
Construction grants for citizens who own land but cannot afford construction costs.
Home maintenance grants for families living in old properties that need urgent repairs.
Ready-built home purchase grants for low-income families eligible for a ready-built home.
Replacement grants for the demolition and reconstruction of unsafe buildings.
For housing loans, there are a variety of options to suit different income brackets:
Loans to build a home on owned land.
Loans to purchase ready-built properties in Dubai.
Maintenance and expansion loans to develop or expand an existing home.
Demolition and reconstruction loans to rebuild old or unsafe homes.
Ready-built home loans (in limited cases) for quick housing solutions on approved land.
Each type has specific conditions, repayment terms (for loans), and technical requirements.
The Corporation’s responsibilities, also include owning, constructing, leasing, and renting land and real estate; designing and implementing residential units and complexes for beneficiaries, either by itself or through institutions and companies it contracts for this purpose; and designing and implementing service facilities related to these units and complexes, in coordination with relevant government agencies.
Sara AlKuwari
Sara AlKuwari is an Emirati reporter who may look shy and quiet but is determined and has a strong d…More
www.khaleejtimes.com (Article Sourced Website)
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