FGX Realty
Most of what decides a Dubai mortgage is not the bank's marketing rate but three rules set by the UAE Central Bank: how much of the property's value you can borrow, how much of your income can go on debt, and how long the loan can run. Get those right and comparing banks becomes simple. This guide explains the rules as they stand in November 2026, how they apply to residents and non-residents, and what the process looks like from pre-approval to transfer day.
The loan-to-value limits every lender follows
The Central Bank's mortgage regulations set the maximum loan-to-value (LTV) for every bank and finance company in the UAE. The limits depend on your status, whether it is your first home, and the property's value.
| Property and use | UAE nationals | Expatriates |
|---|---|---|
| First home, up to AED 5M | 85% | 80% |
| First home, above AED 5M | 75% | 70% |
| Second home or investment | 65% | 60% |
| Off-plan, any value or purpose | 50% | 50% |
A few details that trip people up:
- Only one property per borrower can use the first-home category. If you already have a mortgaged home in the UAE, the next one is assessed as a second home.
- The AED 5 million line is a cliff, not a slope. An expat buying a first home at AED 4.9 million can borrow up to AED 3.92 million (80%). At AED 5.2 million the cap drops to 70%, or AED 3.64 million, so the more expensive home comes with a smaller maximum loan.
- These are maximums. The regulation says lenders may adopt more conservative limits, and many do for particular buyers, buildings or property types.
- Most banks apply the LTV to the lower of the price and their valuation. If the valuer comes in below the agreed price, the gap comes out of your pocket.
How much your income lets you borrow
The 50% debt burden ratio
Total monthly repayments on all your debts, including the new mortgage, cannot exceed 50% of your gross salary and other regular, verifiable income. Banks must stress test the mortgage at 2 to 4 percentage points above the current rate when they calculate this, and where the property is an investment they must deduct at least two months' rent from the rental income they count, to allow for void periods.
Income multiple, term and age
- Maximum loan: 7 times annual income for expatriates and 8 times for UAE nationals.
- Maximum term: 25 years.
- Age: the Central Bank leaves the maximum age at final repayment to each bank's policy, and many set it lower for salaried expats than for nationals. If the loan runs past retirement age, the bank must be satisfied you can still afford it at a 50% debt burden on post-retirement income.
- Source of repayment: salary, verifiable business income or rental income. End-of-service benefits cannot be used.
A worked example
Take an expat resident earning AED 45,000 a month, with a car loan of AED 2,500 a month, buying a first home priced at AED 2,500,000.
| Test | Calculation | Limit |
|---|---|---|
| Loan-to-value | 80% of AED 2,500,000 | AED 2,000,000 |
| Income multiple | 7 x AED 540,000 a year | AED 3,780,000 |
| Debt burden | 50% of 45,000 minus 2,500 | AED 20,000 a month for the mortgage |
Here the LTV is the binding limit, as long as the repayment on a AED 2 million loan, tested at the bank's stressed rate, stays under AED 20,000 a month. If your income is lower or your other debts higher, the debt burden test will bind first. Credit card limits matter too: banks usually count part of your card limits as a monthly commitment even if the balance is zero, so cancelling unused cards before applying can help.
Residents and non-residents
The Central Bank regulation covers lending to UAE nationals, GCC nationals and expatriates and sets minimum standards. It does not create a separate LTV category for non-residents, which means each bank decides whether to lend to them and on what terms. In practice that means:
- Fewer lenders. Only some UAE banks lend to buyers who do not live in the UAE.
- Lower loan-to-value. Expect less than a resident would get on the same property, so plan for a larger deposit.
- More documentation. Proof of income from your home country, a credit report where one exists, longer bank statement history and sometimes a minimum income or property value.
- Currency haircuts. Income in another currency may be discounted to allow for exchange rate movements.
Once you become a UAE resident, your options widen and you can refinance, subject to any early settlement fee.
Fixed, variable and EIBOR
Variable-rate mortgages in the UAE are usually priced as a margin over EIBOR, the Emirates Interbank Offered Rate published daily by the Central Bank. The rate resets at set intervals, commonly linked to one-, three- or six-month EIBOR.
Fixed rates are typically fixed for an initial period, often one to five years, after which the loan reverts to a variable rate. When comparing offers, look past the headline:
- The reversion rate. What margin over EIBOR applies once the fixed period ends?
- Minimum rate clauses. Some offers set a floor below which the rate cannot fall even if EIBOR does.
- Early settlement terms. The Central Bank caps the early settlement fee at 1% of the outstanding balance or AED 10,000, whichever is lower, which keeps switching banks affordable.
- Islamic home finance. Ijara and Murabaha products follow the same Central Bank limits. The profit rate works much like an interest rate for comparison purposes.
What a mortgage costs to set up
| Cost | Charged by | Basis |
|---|---|---|
| Mortgage registration | Dubai Land Department | 0.25% of the loan plus about AED 290 |
| Arrangement or processing fee | Bank | Varies by bank, often up to 1% of the loan plus VAT |
| Valuation | Bank's valuer | Varies, commonly AED 2,500 to 3,500 plus VAT |
| Life insurance | Insurer via the bank | Monthly, based on balance and age |
| Property insurance | Insurer via the bank | Annual, based on the building |
On a AED 1,600,000 loan, DLD's mortgage registration alone is AED 4,000 plus the fixed fee. These costs come on top of the DLD transfer fee, trustee fee and agent commission. The full picture, with a worked example at three levels of borrowing, is in the real cost of buying property in Dubai.
Documents banks ask for
Requirements vary by bank, but the core lists look like this.
Salaried residents
- Passport, residence visa and Emirates ID.
- Salary certificate and recent payslips.
- Bank statements, usually covering the last six months.
- Consent for a credit report from the Al Etihad Credit Bureau.
Self-employed residents
- Trade licence and memorandum of association.
- Audited company accounts, often for the last two years.
- Personal and company bank statements.
Non-residents
- Passport and proof of address.
- Proof of income: employment letter and payslips, or business accounts.
- Bank statements and, where available, a credit report from your country of residence.
From pre-approval to transfer day
- Pre-approval. The bank assesses your income and debts and confirms an amount in principle. It is valid for a limited period and is not a final commitment, but it tells you your real budget and makes your offers credible to sellers.
- Offer and MOU. You agree the price and sign the MOU, ideally with a timeline that allows for the bank's process.
- Valuation. The bank's valuer inspects the property. The loan is based on the lower of price and valuation.
- Final offer letter. You sign the bank's final offer, which sets the rate, term and conditions.
- Transfer. The bank issues manager's cheques and the mortgage is registered with DLD at the trustee office. Register it on the same day as the transfer, because DLD waives the registrar's fee in that case.
Mortgages and off-plan property
Off-plan purchases are capped at 50% LTV whatever your status, and banks only lend on projects they have approved, often close to completion. Most buyers therefore pay the construction-stage instalments from their own funds. Once the building is complete, banks generally treat the unit as a ready property, so a handover mortgage is assessed under the normal limits. If you are relying on a mortgage to pay a large handover instalment, check with banks early that they will lend on that project. Our guide to off-plan payment plans shows where this fits in each type of plan.
Get pre-approved before you fall in love with a property. It costs little, it shows you the real budget, and it stops you signing an MOU you cannot finance.
Frequently asked questions
What is the minimum salary for a Dubai mortgage?
The Central Bank does not set one. Each bank sets its own minimum income, and it often differs for salaried and self-employed applicants and for residents and non-residents.
Can I get a mortgage on a second property?
Yes. An expat can borrow up to 60% of the value of a second home or investment property, regardless of price. UAE nationals can borrow up to 65%.
Is 80% available on a property above AED 5 million?
No. An expat buying a first home above AED 5 million can borrow at most 70%.
Can rental income help me qualify?
Yes, if it is verifiable. For investment properties banks must deduct at least two months' rent from the income they count when calculating your debt burden.
Does a Golden Visa change the limits?
Residency status affects which banks will lend to you and on what terms, but the Central Bank's LTV categories stay the same. If you are buying to qualify for a visa, see our Golden Visa guide for how mortgaged property is treated.
Official sources
Next step
If you are weighing what you can afford, FGX clients can run the numbers in their account with the "Can I buy?" check, and an advisor can point you to banks that lend on your profile. To start that conversation, book a call, or browse current listings within your budget.
This guide is general information, not legal, tax or financial advice. Rules and fees change; confirm current figures with the Dubai Land Department or your advisor before you commit.
