Mortgage Eligibility

The three limits that decide your loan

Your maximum loan is the lowest of three figures under the CBUAE's mortgage regulations:

• Loan-to-value: for expatriates, 80% of the valuation on a first home up to AED 5 million, 70% above AED 5 million, 60% on a second home or investment property, and 50% on any off-plan property.
• Income multiple: up to 7 times annual income for expatriates (8 times for UAE nationals).
• Debt burden ratio: all monthly debt repayments, including the new mortgage, within 50% of gross salary and regular income.

How the debt burden ratio works: an example

Take an applicant with a gross monthly salary of AED 30,000 and a car loan of AED 3,000 a month. Half the salary is AED 15,000; after the car loan, AED 12,000 is left for the mortgage. The bank does not use the offered rate for this check: it calculates the payment at 2 to 4 percentage points higher, so the loan must be affordable at that stressed payment. These figures are illustrative only. Banks are also told not to lend up to the 50% limit automatically, and must allow for normal household spending.

What counts as income and debt

• Income must be reliable and sustainable. Bonuses and other non-guaranteed income are discounted or excluded.
• All debt repayments count, including credit cards, car loans and personal loans.
• For an investment property, at least two months' rent is deducted to allow for vacancies.
• Repayments must come from salary or verifiable business or rental income. End-of-service benefit can't be used.

Age and loan term

The maximum term is 25 years. Since 2019 there is no fixed maximum age at the last repayment; each bank sets its own. If the loan runs past your retirement age, the bank must be satisfied you can repay the remaining balance from retirement income, again within a 50% debt burden ratio. A bank may offer an older applicant a shorter term, which raises the monthly payment.

Residents, non-residents and the self-employed

The Central Bank rules distinguish UAE nationals from expatriates, not residents from non-residents. Whether a bank lends to non-residents, the minimum salary it accepts, how long you must have been employed and how it treats self-employed income are all bank policy, and they vary. If you are self-employed or live abroad, expect more documents and fewer lenders to choose from.

Documents banks usually ask for

Requirements vary by bank. A typical salaried applicant is asked for:

• Passport, residence visa and Emirates ID (non-residents: passport and proof of address abroad)
• Salary certificate from the employer and recent payslips
• Bank statements for recent months
• Details of existing loans and credit cards
• Self-employed: trade licence, company documents and audited accounts or business bank statements

How to improve your chances

• Pay down or close credit cards and small loans before applying; every repayment counts toward the 50% limit.
• Save more than the minimum deposit. A lower loan-to-value can widen the choice of banks.
• Keep the deposit in your own account: borrowed money can't be used for it.
• Check the monthly payment at 2 to 4 points above the rate before you make an offer.

Learn more

For the full loan-to-value table, the process and the costs, see the UAE Mortgage Guide in our Guides section.

Frequently asked questions

Sources

• CBUAE Rulebook, Regulations Regarding Mortgage Loans (Circular 31/2013, as amended)
• CBUAE Rulebook, Amendments to Circular 31/2013 (Resolutions 96/2019 and 31/2/2020)