The two rules that decide everything
Most mortgage calculators tell you the monthly payment and stop. In the UAE that is the least interesting number, because the payment you can afford and the loan a bank is permitted to give you are governed by two separate regulatory ceilings — and either one can stop the purchase.
1. The loan-to-value cap
The Central Bank sets the maximum proportion of a property's value that can be financed. It varies by nationality, by price, and by whether you already own a financed property:
| Buyer | Property value | Max LTV | Minimum deposit |
|---|---|---|---|
| Expat, first property | Up to AED 5m | 80% | 20% |
| Expat, first property | Above AED 5m | 70% | 30% |
| UAE national, first property | Up to AED 5m | 85% | 15% |
| UAE national, first property | Above AED 5m | 75% | 25% |
| Expat, second property | Any | 65% | 35% |
| UAE national, second property | Any | 70% | 30% |
| Anyone, off-plan | Any | 50% | 50% |
The off-plan cap is the one that surprises people most. Buying a property still under construction means finding half the price in cash, regardless of who you are.
2. The debt burden ratio
Your total monthly debt repayments — mortgage, car loan, personal loan, credit card minimums — cannot exceed 50% of your gross monthly income. This is a hard regulatory limit, not a bank preference.
It means existing debt directly reduces how much house you can buy. Clearing a car loan before applying can raise your borrowing capacity by more than saving an extra few months of deposit would.
The cash nobody budgets for
The deposit is not the whole cash requirement. In Dubai you also pay the Land Department transfer fee of 4% of the price, agency commission of 2%, mortgage registration of 0.25% of the loan, and a bank arrangement fee of up to 1%. None of these can be rolled into the mortgage.
On a typical purchase this adds roughly 6–7% of the price on top of the deposit. A buyer with exactly 20% saved does not have enough — they need closer to 27%.
Term and age limits
The maximum mortgage term is 25 years. Lenders also apply maximum-age-at-maturity rules, commonly 65 for salaried expatriates and 70 for the self-employed, which can shorten the available term for older borrowers and push the monthly payment up.
Sources
- CBUAE Rulebook — Regulations Regarding Mortgage Loans
- CBUAE Rulebook — Article 3, Important Ratios
- Dubai Land Department — fees
Built and maintained by Mohammed Jamil. Rules change — if a cap here is out of date, email [email protected].