The short answer
- Expat residents can borrow up to 80% of a first home valued at AED 5,000,000 or less, and up to 70% above that. UAE nationals can borrow up to 85% and 75%.
- Second and investment homes are capped at 60% for expats and 65% for UAE nationals. Off-plan is capped at 50% for everyone.
- Total monthly debt repayments may not exceed 50% of your income (the debt burden ratio).
- Maximum term is 25 years. The loan must normally be repaid by age 65 for expat employees and 70 for UAE nationals.
- At an illustrative 4.5%, AED 1,200,000 over 25 years costs about AED 6,670 a month.
A UAE mortgage calculator estimates your monthly repayment from three inputs: loan amount, interest rate and term. Example: AED 1,200,000 over 25 years at an illustrative 4.5% costs about AED 6,670 a month. Expat residents can usually borrow up to 80% of a first home worth AED 5,000,000 or less.
The calculator is the easy part. What actually decides your budget is a set of Central Bank of the UAE (CBUAE) rules that every bank must follow: loan-to-value caps, a debt burden ratio, and limits on term and age. This guide explains those rules, how pre-approval works, what fees to expect, and how non-resident and off-plan mortgages differ. Try your own numbers in our mortgage calculator as you read.
How does a mortgage calculator work?
A repayment (annuity) calculator spreads the loan and its interest into equal monthly payments across the term. Early payments are mostly interest, and later ones mostly repay the loan. The inputs that matter:
- Property price and down payment. These set the loan amount, which LTV rules cap.
- Interest rate. Most UAE mortgages are fixed for an initial 1–5 years, then move to a variable rate tied to EIBOR (the Emirates Interbank Offered Rate) plus a bank margin.
- Term. Up to 25 years, but limited by your age at the final payment.
| Term | 3.99% | 4.50% | 5.25% |
|---|---|---|---|
| 15 years | AED 8,870 | AED 9,180 | AED 9,647 |
| 20 years | AED 7,265 | AED 7,592 | AED 8,086 |
| 25 years | AED 6,327 | AED 6,670 | AED 7,191 |
The longer term lowers the monthly payment but costs much more interest overall. At 4.5%, total interest is roughly AED 452,000 over 15 years against roughly AED 801,000 over 25 years. Also remember that the rate usually changes when the fixed period ends. Model a rate 1–2 percentage points higher than your starting rate to see whether you can still afford the payment.
What are the LTV limits in the UAE?
Loan-to-value (LTV) is the loan as a percentage of the property's value, using the lower of the price and the bank's valuation. The CBUAE's mortgage regulations (Circular No. 31/2013, as amended in 2020) set these maximums:
| Property | Expatriate | UAE national |
|---|---|---|
| First home, value ≤ AED 5,000,000 | 80% | 85% |
| First home, value > AED 5,000,000 | 70% | 75% |
| Second or subsequent home (any value) | 60% | 65% |
| Off-plan (any buyer) | 50% | 50% |
These are ceilings, not promises. A bank can lend less depending on your income, your nationality, the property or the developer. Because the valuation can come in below the price, keep some extra cash in case the bank lends less than you expected.
How much can I borrow? The 50% debt burden rule
Under CBUAE rules, your total monthly debt repayments may not exceed 50% of your gross monthly income. That total covers the new mortgage plus any car loans and personal loans, and banks also count a share of your credit card limits. If you earn AED 30,000 a month and already pay AED 3,000 on a car loan, your mortgage payment can be at most AED 12,000. Banks apply their own affordability tests on top, often at a stressed interest rate, and set their own minimum-income thresholds.
Worked example: can you afford a AED 1,500,000 apartment?
Take an expat resident earning AED 25,000 a month with no other loans, buying a first home at AED 1,500,000. The LTV cap allows a loan of up to AED 1,200,000 (80%), so the down payment is AED 300,000. At an illustrative 4.5% over 25 years, the repayment is about AED 6,670 a month, well within the AED 12,500 that a 50% debt burden allows. Even if rates rose to 7%, the payment would be about AED 8,481, still within the limit. The harder part is the cash: the AED 300,000 deposit plus roughly AED 115,000 in fees, or about AED 415,000 in total (indicative). Most buyers find the cash, not the monthly payment, sets their budget.
Tenor and age limits
The maximum mortgage term in the UAE is 25 years. The loan must also be repaid by a maximum age: under the CBUAE framework this is 65 for expatriate employees and 70 for UAE nationals. Many banks allow self-employed expats up to 70. So a 45-year-old salaried expat can normally get at most a 20-year term, which pushes up the monthly payment.
How to get pre-approved for a mortgage in Dubai
Pre-approval is a bank's conditional agreement to lend you up to a stated amount, based on your income and credit history. It costs little or nothing, commonly lasts around 60 days, and tells sellers and agents you are ready to buy.
- Check your credit report with the Al Etihad Credit Bureau and clear or reduce card balances you don't need.
- Gather documents. Passport, visa and Emirates ID. Salaried applicants need a salary certificate and 3–6 months of payslips and bank statements. Self-employed applicants need a trade licence, company and personal statements and, often, audited accounts.
- Compare lenders or use a licensed mortgage adviser. Look at the fixed period, the variable rate afterwards, the fees and the early settlement terms, not only the headline rate.
- Submit the application and receive pre-approval stating the maximum loan, term and conditions.
- Find the property and sign the MOU (Form F) with enough time for the bank's valuation before the transfer date.
- Valuation and final offer letter. The bank values the property and issues the final offer. Read the fees, rate reversion and insurance terms before signing.
- Transfer and mortgage registration. The bank issues manager's cheques, and the DLD registers the mortgage at 0.25% of the loan plus a small fixed fee.
What fees come with a Dubai mortgage?
| Fee | Typical amount | Notes |
|---|---|---|
| Bank processing fee | Up to 1% of the loan + VAT | Varies by bank. Some waive or cap it. |
| Valuation fee | AED 2,500–3,500 | Paid up front and non-refundable. |
| DLD mortgage registration | 0.25% of the loan + small fixed fee | Set by the DLD. Commonly quoted as + AED 290. |
| Life insurance | Monthly premium | Normally required, sized to the loan. |
| Property insurance | Annual premium | Often required by the bank. |
| Early settlement fee | Max 1% of outstanding balance or AED 10,000, whichever is lower | CBUAE cap. Check your contract terms. |
These sit on top of the purchase costs every buyer pays: the 4% DLD transfer fee, the trustee office fee and agent commission. You normally pay them in cash, and our buying costs guide has a full worked example. Banks lend within the LTV cap on the property's value and generally don't finance transaction costs.
Can non-residents get a mortgage in Dubai?
Yes, but from fewer lenders and on stricter terms. The CBUAE caps apply to everyone, and banks add their own non-resident policies on top. Non-residents are commonly offered around 50–60% LTV on ready property (indicative), so plan for a 40–50% down payment. Expect to prove income with several months of bank statements and payslips or accounts from your home country, sometimes plus a credit report. Some banks only lend to certain nationalities or above minimum income levels. A licensed mortgage adviser who works with several lenders can save you a lot of time.
Can you get an off-plan mortgage in Dubai?
Off-plan lending is capped at 50% LTV for every buyer, and relatively few banks offer it. Those that do usually lend only on projects from approved developers, and often only once construction has reached an advanced stage. In practice, most off-plan buyers pay the developer's instalments in cash through construction, then take a mortgage on the balance at or near handover, when the property counts as ready and the normal LTV caps apply. If you plan to do this, get indicative approval early and remember that property values can change during construction. Our off-plan guide explains payment plans, and you can compare current off-plan projects.
Fixed or variable?
A fixed rate holds your payment steady for an initial period, typically 1–5 years, and then usually reverts to a variable rate. A variable rate moves with EIBOR, so payments can rise or fall. Before you choose, check what the rate becomes after the fixed period, whether there is a minimum rate, and how much it costs to switch or settle early. Many buyers fix for the first few years for certainty and then refinance.
Why do mortgage applications get declined?
- Debt burden over 50%. Often caused by unused credit card limits. Closing cards you don't need can make room for the loan.
- Short time in your job. Many banks want to see a minimum period with your current employer, or two years of trading if you are self-employed.
- Employer or income not on the bank's list. Some lenders only accept certain employers, or discount commission and bonus income.
- Credit report issues. Late payments or bounced cheques on your Al Etihad Credit Bureau record weigh heavily.
- Property issues. A low valuation, an unapproved building or an off-plan unit the bank won't finance.
- Age. If your retirement age leaves too short a term, the monthly payment can push you over the debt burden limit.
Ready to shortlist homes within your budget? Browse apartments for sale and villas for sale, or read our step-by-step buying guide.
Frequently asked questions
How much can an expat borrow for a mortgage in Dubai?
Under Central Bank of the UAE rules, an expat resident can borrow up to 80% of a first home valued at AED 5,000,000 or less, and up to 70% above that. Second homes are capped at 60% and off-plan at 50%. Your monthly debt repayments must also stay within 50% of your income, which often limits the loan more than LTV does.
How do I use a UAE mortgage calculator?
Enter the property price, your down payment (at least 20% for an expat's first home up to AED 5,000,000), the interest rate and the term, up to 25 years. The calculator returns the monthly repayment. Test a rate 1–2 points higher than today's to see what happens when a fixed period ends, and add purchase fees separately because they are paid in cash.
What is the debt burden ratio in the UAE?
The debt burden ratio (DBR) is your total monthly debt repayments as a share of your gross monthly income. Central Bank rules cap it at 50%, including the new mortgage, car loans, personal loans and a share of credit card limits. For example, on a AED 30,000 monthly income, total repayments can't exceed AED 15,000.
Can non-residents get a mortgage in Dubai?
Yes. A number of UAE banks lend to non-residents buying in Dubai, usually at lower loan-to-value than for residents, commonly around 50–60% on ready property (indicative). Expect stricter income checks, several months of bank statements and a narrower choice of lenders. Off-plan lending is capped at 50% for all buyers.
How long does mortgage pre-approval last in Dubai?
Pre-approval validity is set by each bank and is commonly around 60 days, though some banks offer longer. It is conditional on your circumstances staying the same and on a satisfactory property valuation. If it expires before you find a property, the bank can usually renew it with updated documents.
What is the maximum age for a mortgage in the UAE?
Under the Central Bank framework, a mortgage must normally be fully repaid by age 65 for expatriate employees and 70 for UAE nationals. Many banks allow self-employed expats up to 70. The maximum term is 25 years, so older applicants get shorter terms and higher monthly payments.
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