How Mortgages Work in the UAE
A mortgage (home finance) is a long-term loan secured on the property you buy. You pay a down payment, the bank lends the rest, and you repay it monthly over up to 25 years. The bank registers a mortgage on the title deed with the land department until the loan is paid off.
Your payment depends on the loan amount, interest rate and tenure. Because mortgages run for decades, a small change in rate makes a big difference — try moving the rate slider by 0.5% and watch the total interest.
Loan-to-Value (LTV) Rules
The Central Bank of the UAE caps how much a bank can lend against a property's value. The calculator enforces these minimum down payments automatically:
| Property | Expat | UAE National |
|---|---|---|
| First home ≤ AED 5M | 80% LTV · 20% down | 85% LTV · 15% down |
| First home > AED 5M | 70% LTV · 30% down | 75% LTV · 25% down |
| Second / investment home | 60% LTV · 40% down | 65% LTV · 35% down |
| Off-plan property | 50% LTV · 50% down | 50% LTV · 50% down |
Upfront Costs of Buying a Home
On top of the down payment, budget roughly 6–8% of the price for fees. Figures shown are typical for Dubai and vary by emirate, bank and agent:
DLD transfer fee
Dubai Land Department fee on the purchase price, plus a small admin fee.
Mortgage registration
Registering the bank's mortgage on the title deed.
Agency commission
Paid to the real estate agent, plus 5% VAT.
Bank arrangement fee
Charged by many banks for processing, often capped; sometimes waived.
Valuation & trustee
Bank valuation of the property and the trustee office fee for the transfer.
Fixed vs Variable Rate
The rate is locked for an initial period, typically 1–5 years, then usually switches to variable. Predictable payments while it lasts.
Linked to EIBOR plus a bank margin, so payments move with interest rates. Often lower at the start, but can rise.
Check the follow-on rate. When a fixed period ends, the new variable rate matters as much as the introductory one. Also check early settlement terms — UAE rules cap the fee at 1% of the outstanding balance, up to AED 10,000.
Mortgage Eligibility
Documents Required
- Emirates ID, passport & visaValid copies
- Salary certificateOr trade licence if self-employed
- Bank statementsUsually 6 months
- Memorandum of Understanding (Form F)Signed with the seller
- Title deed / sale agreement copyFrom the seller or developer
- Credit report consentAl Etihad Credit Bureau
The Home-Buying Process
Pre-approval
Get a pre-approval letter so you know your budget before you search.
Offer & MOU
Agree the price, sign the MOU and pay the deposit (often 10%).
Valuation & offer
The bank values the property and issues the final offer letter.
Transfer
At the trustee office the title transfers and the mortgage is registered.
Mortgage Tips
Save for fees, not just the deposit. Plan for 6–8% on top of your down payment.
Compare the full rate path. Look at the fixed rate, the follow-on variable rate and the fees together.
Keep your DBR low. Clear credit card balances and small loans before applying to borrow more.
Overpay when you can. Most banks allow partial prepayments each year — even small overpayments cut years of interest.
Ready Property vs Off-Plan
Move in or rent it out straight away. Banks lend up to the standard LTV limits, the price reflects today's market, and you can inspect exactly what you're buying.
Bought from a developer before completion, usually with a payment plan spread over construction. Banks typically finance off-plan only up to about 50%, and many buyers pay instalments directly to the developer before taking a mortgage on handover.
Off-plan checks: confirm the project is registered, payments go into a regulated escrow account, and the handover date and penalty terms are in the sale agreement.
Upfront costs on top of deposit≈ 6–8% of pricePhoto: UnsplashChoosing where to buy
Price per square foot, service charges and rental demand vary a lot between communities. Before you commit, compare more than the asking price.
- Service chargesAnnual fees per sq ft for maintenance and facilities
- Commute & schoolsMetro access, traffic and school catchments
- Rental yieldIf you might let it out later
- Developer track recordEspecially for off-plan
Property & the UAE Golden Visa
Investors who own property worth at least AED 2 million may qualify for a 10-year UAE Golden Visa. Off-plan and mortgaged properties can qualify under certain conditions set by the authorities — check the current requirements with the land department and the immigration authority before you buy with this goal in mind.
Refinancing & Mortgage Buy-Outs
01Check your current terms
Note your rate, remaining balance, any fixed-period end date and the early settlement fee (capped at 1% of the outstanding balance, max AED 10,000).
02Compare new offers
Look at the new rate, the follow-on variable rate, and all fees — valuation, registration and arrangement.
03Work out the break-even
Divide the total switching costs by your monthly saving to see how many months it takes to come out ahead.
04Switch
The new bank pays off the old loan, and the mortgage registration on your title deed is updated.
Mortgages for Self-Employed Buyers
Business owners can get mortgages too, but banks look at income differently. Expect to show a trade licence (often at least 2 years old), audited financial statements, company and personal bank statements (usually 6–12 months) and proof of your share in the business. LTV limits may be a little lower and rates a little higher than for salaried applicants.
Common Mortgage Mistakes
✓Do
- Get pre-approved before you make an offer.
- Budget 6–8% for fees on top of the down payment.
- Compare the rate after the fixed period, not only the teaser rate.
- Keep an emergency fund of 6 months' payments.
✕Don't
- Take new loans or cards while your mortgage is being approved.
- Ignore service charges — they're part of your monthly cost.
- Borrow right up to the 50% DBR limit.
- Skip the property inspection on resale homes.
Home Buyer Checklist
How Rates Change Your Payment
Monthly payment on an AED 1.6 million loan at different rates and terms. Over 25 years, a 1% difference can change the total cost by hundreds of thousands of dirhams.
What happens on transfer day
Buyer, seller, both banks and the agent meet at a registration trustee office. The title deed moves to your name and the bank's mortgage is registered.
- Manager's cheques readyFor the seller, DLD fees and any seller's mortgage payoff
- Developer NOCConfirms no outstanding service charges
- IDs and originalsPassports, Emirates IDs, MOU and title deed
- New title deedIssued in your name, with the mortgage noted
Service Charges & Running Costs
Owning a home comes with regular costs beyond the mortgage. Add them up before you buy:
Service charges
Annual fees for building maintenance, security and amenities, charged per square foot.
Utilities & cooling
Electricity, water and district cooling where applicable.
Insurance
Building, contents and mortgage life insurance.
Housing fee
A municipality housing fee is typically added to utility bills.
Islamic Home Finance
The bank buys the property and leases it to you; your payments combine rent and gradual purchase, and ownership transfers at the end.
The bank buys the property and sells it to you at an agreed profit, payable in instalments. Payments are calculated much like a conventional mortgage.
Joint Mortgages & Co-Borrowers
Couples and some family members can apply together. Banks combine both incomes to work out affordability, which can increase how much you can borrow. Both borrowers are fully responsible for the loan, and both names usually appear on the title deed. Check how ownership shares are recorded and what happens if one borrower leaves the UAE.
Snagging & Inspection
01Book a professional inspection
For new homes, a snagging company checks finishes, plumbing, electrics and AC before handover.
02Get a written report
Photos and a list of defects you can share with the developer or seller.
03Agree the fixes
Developers usually fix snags under the defects liability period — get dates in writing.
04Re-inspect before moving in
Confirm everything on the list has been fixed.
Mortgage Glossary
Loan-to-value: the loan as a percentage of the property's value.
The sale agreement signed by buyer and seller in Dubai.
The official document proving ownership of the property.
No Objection Certificate from the developer allowing the transfer.
Dubai's registration of off-plan property sales.
Where property transfers are processed and registered.
A bank's conditional confirmation of how much it may lend.
The benchmark rate that variable mortgage rates follow.
Mortgage FAQs
No questions match your search.