Finance & Mortgage · 7 min · 2026-10-23
How Much House Can I Afford in Dubai? The 3-Limit Method, with a Salary Table
Your Dubai budget is the lowest of three CBUAE limits: the 50% DBR with a stress test, 7x annual income and the LTV. Here is the method and a table by salary.
How much house you can afford in Dubai is set by the lowest of three UAE Central Bank limits: your debt repayments cannot exceed 50% of gross income after a stress test (Article 3.1), the loan cannot exceed 7 times annual income for expatriates or 8 times for UAE Nationals (Article 3.4), and the loan cannot exceed the maximum loan-to-value for your profile (Article 3.2). Your property budget is then the maximum loan plus your own down payment. Below is the method step by step, and a table of examples by salary.
All rules come from the CBUAE "Regulations Regarding Mortgage Loans" (Circular 31/2013).
Limit 1: the Debt Burden Ratio (DBR)
Article 3.1 sets the maximum DBR at 50% of gross salary and any regular income from a defined source. Three details matter:
- All debts count: car loans, personal loans and credit card commitments reduce what is left for the mortgage (Article 2.3).
- Stress test: the lender must test the loan at 2 to 4 percentage points above the loan rate, depending on the interest rate cycle.
- Introductory rates: if the first period has a lower rate, the stress test uses the rate that applies afterwards.
Article 3.1 also says lenders should not automatically apply the maximum DBR, and Article 2.3 requires the assessment to include normal household expenditure. Each lender's own figure may therefore be lower than the pure 50%.
Limit 2: the income multiple
Article 3.4 caps the loan at 7 times annual income for expatriates and 8 times for UAE Nationals. On a monthly salary of AED 20,000 (AED 240,000 a year), an expatriate's loan cannot exceed AED 1,680,000.
Limit 3: loan-to-value (LTV)
Article 3.2 sets the maximum share of the property value you can borrow:
- Expatriates: 80% for a first home below AED 5 million, 70% above, 60% for a second home or investment.
- UAE Nationals: 85% up to AED 5 million, 75% above, 65% for a second home or investment.
- Off plan: 50% for everyone.
The LTV decides how much cash you need. With 80% LTV, the price you can reach is the loan divided by 0.8, as long as you have the 20% down payment and the purchase costs from your own resources (Article 2.4).
The method in four steps
- Take 50% of your gross monthly income and subtract existing monthly debt repayments.
- Find the loan that this monthly amount supports at the stressed rate over your term (maximum 25 years, Article 3.3).
- Compare with 7x (or 8x) annual income, and keep the lower figure.
- Divide by the LTV to find the maximum price, then check that you have the down payment and costs.
Table by salary
Assumptions, for illustration only: expatriate, first home, no other debts, 25-year term, example rate 4%, stress test at an example 6% (2 points above), 80% LTV. Household expenditure deductions are not included, so real lender figures may be lower.
| Gross monthly salary | 50% DBR budget | Loan supported at stressed 6% | 7x annual income | Maximum loan | Price at 80% LTV | Monthly payment at example 4% |
|---|---|---|---|---|---|---|
| AED 15,000 | AED 7,500 | AED 1,164,051 | AED 1,260,000 | AED 1,164,051 | about AED 1,455,064 | AED 6,144 |
| AED 20,000 | AED 10,000 | AED 1,552,069 | AED 1,680,000 | AED 1,552,069 | about AED 1,940,086 | AED 8,192 |
| AED 25,000 | AED 12,500 | AED 1,940,086 | AED 2,100,000 | AED 1,940,086 | about AED 2,425,107 | AED 10,240 |
| AED 30,000 | AED 15,000 | AED 2,328,103 | AED 2,520,000 | AED 2,328,103 | about AED 2,910,129 | AED 12,289 |
| AED 40,000 | AED 20,000 | AED 3,104,137 | AED 3,360,000 | AED 3,104,137 | about AED 3,880,172 | AED 16,385 |
| AED 50,000 | AED 25,000 | AED 3,880,172 | AED 4,200,000 | AED 3,880,172 | about AED 4,850,215 | AED 20,481 |
In this example the stress-tested DBR is the binding limit at every salary. With a stress test of 3 or 4 points, the loans would be lower still. Find your own figure with the mortgage by salary tool.
Don't forget the cash side
Your budget is not only the loan. On top of the down payment, plan for the 4% DLD transfer fee (usually paid by the buyer in practice), mortgage registration at 0.25% of the loan plus admin fees, the AED 250 title deed fee, the trustee office fee and your lender's fees. See the total cost of buying with a mortgage.
Special cases
- Investment property: the lender deducts at least two months' rent from the DBR calculation (Article 3.1), and the LTV is 60% for expats.
- Loan beyond retirement: the balance at retirement must be serviceable at a 50% DBR on post-retirement income (Article 3.1). Each lender sets the maximum age at the last payment (Article 3.3).
- Off plan: 50% LTV, so the cash share is two and a half times that of an 80% loan.
FAQ
How much mortgage can I get on a AED 20,000 salary in Dubai?
In our example (no other debts, stressed at an example 6% over 25 years), about AED 1,552,069, which supports a first home of about AED 1,940,086 at 80% LTV. Your lender's figure depends on its own assessment.
Is the 50% DBR based on gross or net salary?
Article 3.1 refers to 50% of gross salary and any regular income from a defined and specific source.
Does a longer term increase what I can borrow?
Yes, up to the 25-year maximum, because a longer term lowers the monthly payment. The 7x income limit still applies.
Do bonuses count?
Article 2.3 says bonuses and temporary income should be discounted, or excluded if not assured.
Next steps
Read the UAE mortgage guide, learn about the mortgage stress test, and test prices with the LTV calculator.
Reviewed by Ahmed Benjas, co-founder & CEO of Cevitas Real Estate
Moroccan real estate expert based in Dubai, co-founder & CEO of Cevitas Real Estate, a RERA-licensed brokerage (NGI House, Deira), with an AED 200M+ track record. He works in French, Arabic, Darija and English.
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Calculators for this guide: Dubai property ROI calculator · Off-plan calculator Dubai