How the UAE mortgage limits work
| Buyer / property | ≤ AED 5m | > AED 5m | Second property | Off-plan |
|---|---|---|---|---|
| Expat | 80% | 70% | 60% | 50% |
| UAE national | 85% | 75% | 65% | 50% |
Worked example
Expat, first ready home at AED 1,500,000, income AED 30,000, existing debts AED 2,000, 4.49% over 25 years. LTV cap 80% → AED 1,200,000. EMI ≈ AED 6,663, DBR = (6,663 + 2,000) ÷ 30,000 = 28.9% ✓. Income multiple 1.2m ÷ 360k = 3.3× ✓. Deposit AED 300,000 + DLD 60,580 + agency 31,500 + registration 3,290 + misc ≈ 20,000 → about AED 415,000 cash.
Tips
- Get a pre-approval before you offer — it is valid 60–90 days and tells you your real ceiling after the bank's stress test.
- Compare the reversion rate and early settlement terms, not just the headline fixed rate.
- Non-residents can borrow from a few UAE banks at 50–60% LTV with higher rates.
Frequently asked questions
What is the maximum mortgage LTV in the UAE?
For expats: 80% on a first ready property up to AED 5 million, 70% above AED 5 million, 60% on second or subsequent properties. For UAE nationals: 85% / 75% / 65% respectively. Off-plan purchases are capped at 50% for everyone. Set by the Central Bank of the UAE mortgage regulations.
How much deposit do I need for a Dubai property?
At least 20% for an expat first home under AED 5m, plus roughly 7–8% in fees (4% DLD transfer fee, 2% agency + VAT, mortgage registration, valuation and bank fees). On a AED 1.5m apartment that is about AED 300,000 deposit plus AED 110,000 in costs.
What is the 50% DBR rule?
Your total monthly debt repayments — the new mortgage plus car loans, personal loans and 5% of credit card limits — cannot exceed 50% of your monthly income. Banks apply a stress rate (typically 2% above the actual rate) when testing this.
Is there a maximum loan based on salary?
Yes. The loan cannot exceed 7 times annual income for expats or 8 times for UAE nationals, regardless of the LTV.
What is the maximum mortgage term in the UAE?
25 years, and the loan must be repaid by age 65 for salaried expats (70 for self-employed and UAE nationals). A 45-year-old expat can therefore borrow over a maximum of 20 years.
Can the fees be added to the mortgage?
Many banks will finance part of the upfront costs (often up to 5% of the price) on top of the LTV, subject to the DBR and income-multiple limits. Ask for this explicitly; it is not automatic.
What are the mortgage costs in Dubai?
DLD transfer fee 4% + AED 580; mortgage registration 0.25% of the loan + AED 290; trustee office AED 4,000 + VAT (AED 2,000 below AED 500k); agency 2% + 5% VAT; valuation AED 2,500–3,500 + VAT; bank arrangement fee up to 1% of the loan + VAT; life insurance ~0.3–0.5% of the balance per year; property insurance ~0.05% per year.
Fixed or variable rate?
Most UAE mortgages offer a fixed rate for 1–5 years, then revert to a variable rate of EIBOR plus a margin (typically 1.5–2.5%). Check the reversion rate and early settlement fee (capped at 1% of the balance or AED 10,000, whichever is lower).