UAE Mortgage Guide
Updated September 2026A mortgage in the UAE lets an expatriate borrow up to 80% of the value of a first home worth AED 5 million or less, and a UAE national up to 85%, repaid over at most 25 years. Your total debt repayments can't exceed 50% of your income, and off-plan purchases are capped at 50% financing. These limits come from the Central Bank of the UAE (CBUAE) and apply to every bank. Rates and bank fees vary by lender.
How does a mortgage in the UAE work?
You pay a deposit from your own money, and a bank or finance company lends the rest against the property. The loan is secured by a first-degree mortgage registered in the lender's favour with the land department (the Dubai Land Department in Dubai, DARI in Abu Dhabi). You repay principal and interest on a reducing balance, at least quarterly; monthly instalments are the norm.
The CBUAE's Regulations Regarding Mortgage Loans set the minimum standards. Banks may be stricter than these rules but not looser, so two banks can offer you different amounts. The rules treat owner-occupiers and investors differently, and Islamic home finance (with a profit rate instead of interest) must meet the same requirements.
How much can you borrow? Loan-to-value limits
The loan-to-value (LTV) ratio is the loan as a share of the property's appraised value. These are the maximums under Article 3 of the regulations:
| Buyer | First home, up to AED 5m | First home, over AED 5m | Second home or investment |
|---|---|---|---|
| UAE nationals | 85% | 75% | 65% |
| Expatriates | 80% | 70% | 60% |
| Off-plan (any buyer) | 50%, regardless of value or purpose | ||
- Each borrower can claim the first-home rate on one property only.
- The LTV is applied to the bank's independent valuation. If the valuation is below the price, you fund the difference.
- The deposit must come from your own resources, not from a personal loan or credit card.
- The loan is also capped at 7 years' annual income for expatriates and 8 years' for UAE nationals.
For off-plan purchases, the bank must use your share of the price first and only then release loan money to the developer, against construction milestones confirmed by an independent party.
Mortgage eligibility and affordability
The main test is the debt burden ratio (DBR). All your monthly debt repayments, including the new mortgage, credit cards and any car or personal loans, can't exceed 50% of your gross salary and regular income. Banks are told not to lend up to the maximum automatically.
- Stress test: the mortgage payment is calculated at 2 to 4 percentage points above your rate (or above the rate that applies after an introductory period).
- Only reliable income counts. Bonuses and other non-guaranteed income are discounted or left out.
- For an investment property, at least two months' rent is deducted to allow for empty periods.
- If the loan runs past retirement, the remaining balance must be affordable at 50% of your retirement income. The maximum age at the last payment is set by each bank.
- End-of-service benefit can't be used to repay the loan.
Residency, employment type and minimum salary are bank policy, not Central Bank rules, which is why lenders differ for non-residents and the self-employed. Our mortgage eligibility guide for expats works through a DBR example and the documents banks ask for.
The UAE mortgage process, step by step
Check affordability
Work out the deposit, costs and a monthly payment you can carry if rates rise.
Get pre-approval
The bank checks your income and debts and says, in principle, how much it may lend.
Agree on a property
Make an offer and sign the MOU (resale) or SPA (off-plan). Ask for a finance condition.
Valuation
An independent valuer inspects the property. The loan is based on this value, not the price.
Final offer
Read the offer letter: rate, fixed period, fees schedule, insurance and early settlement terms.
Transfer and registration
The bank pays the seller and the mortgage is registered with the land department.
Pre-approvalis a conditional statement of how much a bank may lend, based on your income and debts. It is not a final approval: the loan still depends on the valuation, the property and the bank's checks. Its validity period and any fee are set by the bank. Before you commit, the regulations require the bank to show you all fees in a separate schedule and the total cost of the loan over its life.
Each stage is covered in detail in how the mortgage process works in the UAE. To test your numbers first, use the UAE mortgage calculator.
Mortgage costs and fees
A mortgage adds these costs to the usual costs of buying:
- Dubai Land Department mortgage registration: 0.25% of the loan amount, plus AED 250 for the title deed and AED 10 knowledge and AED 10 innovation fees.
- Trustee centre service fee when the mortgage is registered through one: AED 4,000 + VAT, or AED 5,000 + VAT for an off-plan (Oqood) mortgage, as listed by the DLD.
- Bank arrangement or processing fee and valuation fee: set by each bank and not capped in the Central Bank's fee table. Compare them across offers.
- Insurance required by the lender, typically life cover and property insurance. Premiums vary.
- Capped by the Central Bank (before VAT): early or partial settlement at 1% of the balance or AED 10,000, whichever is less; late payment up to AED 700.
- When you pay off the loan, the DLD charges AED 1,000 to release the mortgage, plus the title deed fee.
In Abu Dhabi, mortgages are registered through DARI, which shows the fee at payment. For the full list with who pays what, see mortgage fees in Dubai; for the 4% transfer fee, agency commission and other purchase costs, see the costs of buying property in Dubai or run your numbers in the property buying cost calculator.
Fixed vs variable mortgage rates
A fixed rate stays the same for an agreed period, commonly the first few years, after which the loan usually moves to a variable rate. A variable rateis typically the bank's margin plus EIBOR, the Emirates Interbank Offered Rate published by the Central Bank, so your payment moves with it. Some offers also set a minimum rate.
Fixed gives certainty for the fixed years; variable can fall as well as rise. Check the rate that applies after the fixed period ends, because that is what you will pay for most of the term. A bank can't change your loan terms without your written consent, and must give two months' notice of fee changes. More in our guide to fixed vs variable mortgages in the UAE.
Risks and drawbacks
Rising payments
When a fixed period ends or EIBOR rises, a variable payment goes up. Banks stress test you at 2 to 4 points above your rate for this reason.
Low valuation
If the bank values the property below the price, it lends a percentage of the lower figure and you pay the gap in cash.
Negative equity
If prices fall, you can owe more than the property is worth, which makes selling or refinancing hard.
Large cash outlay
Deposit plus buying costs must come from your own money. Off-plan loans are capped at 50%, so half the price is yours to fund.
Exit costs
Settling early or moving the loan to another bank can cost up to 1% of the balance, capped at AED 10,000.
Income shocks
A job loss or pay cut does not pause repayments. A 50% debt burden leaves little room if income drops.
Frequently asked questions
How much deposit do I need for a mortgage in the UAE?
Under Central Bank rules, an expatriate buying a first home worth AED 5 million or less needs at least 20% of the value; UAE nationals need 15%. Above AED 5 million the minimums are 30% and 25%. Second homes and investment properties need 40% (expatriates) or 35% (nationals), and off-plan purchases need 50%. You also pay the buying costs in cash.
Can expats get a mortgage in the UAE?
Yes. The Central Bank regulations set limits for expatriates alongside UAE nationals, with a maximum loan-to-value of 80% on a first home up to AED 5 million. Whether a bank lends to non-residents, and on what terms, is each bank's own policy.
What is the maximum mortgage term in the UAE?
25 years, under Article 3 of the Central Bank's mortgage regulations. There is no longer a fixed maximum age at the last repayment; since 2019 each bank sets that in its own lending policy.
What is the debt burden ratio for a UAE mortgage?
All your monthly debt repayments, including the new mortgage, credit cards and other loans, can't exceed 50% of your gross salary and regular income. Banks must calculate the mortgage payment at 2 to 4 percentage points above the actual rate when checking this.
How much is the mortgage registration fee in Dubai?
The Dubai Land Department charges 0.25% of the mortgage amount, plus AED 250 for the title deed and small knowledge and innovation fees. A trustee centre service fee applies when the registration is done through one.
Can I pay off my UAE mortgage early?
Yes. The Central Bank caps the early settlement fee on home loans at 1% of the outstanding balance or AED 10,000, whichever is less (before VAT). The same cap applies to partial settlements and to moving your loan to another bank.
Sources
- Regulations Regarding Mortgage Loans (Circular 31/2013) (CBUAE Rulebook)
- Amendments to Circular 31/2013 (2019 and 2020) (CBUAE Rulebook)
- Regulation 29/2011 on bank loans, Appendix 2 fee caps (CBUAE Rulebook)
- EIBOR rates (Central Bank of the UAE)
- Mortgage registration application (Dubai Land Department)
- Sale registration with an initial mortgage (Oqood) (Dubai Land Department)
- Mortgage release application (Dubai Land Department)
- Register a property mortgage contract (DARI (Abu Dhabi))
Last reviewed September 2026. Central Bank limits and land department fees change; confirm them with the authority and your bank before you commit.
This guide is general information, not financial advice. Mortgage terms depend on your circumstances and the lender; get a written offer and read it in full before you commit.