Finance & Mortgage · 7 min · 2026-10-23
How to Read a Mortgage Offer in the UAE: What Article 4 Requires and a Checklist
The CBUAE lists what a mortgage offer and loan documents must contain. Here is each item in plain English, with a checklist to use before you sign.
What a UAE mortgage offer must tell you
Under Article 4 of the CBUAE Regulations Regarding Mortgage Loans, your loan documents must include the property details, your contribution, the loan amount, the repayment period, the periodic installment, the interest or profit rate, insurance requirements, how the money is disbursed, construction milestones for off-plan properties and a clear pre-payment policy. Fees must be in a separate schedule attached to the contract, and you must receive the total cost of the loan over its lifetime. Reading an offer means checking each of these, line by line, before you sign.
The legal starting point
Article 4 opens with a principle: lenders "should provide the borrower with sufficient and transparent information, including costs and risks associated with the loan, to enable the borrower to make an informed assessment of the suitability of the loan". It also requires transparency on "all fees, charges and interest rates (or profits) including the method of calculating interest/profit".
The items, one by one
1. Property and your contribution
The offer should identify the property or development and your own contribution (the down payment). Check the figure is based on the appraised value (Article 2.5), not only on the price. See UAE mortgage LTV limits explained.
2. Loan amount and repayment period
Confirm the amount matches the LTV and the term is within the 25-year maximum (Article 3.3).
3. Periodic installment
The monthly (or other frequency) payment. Article 3.5 requires repayments at least quarterly, on a reducing balance basis, except for interest-only investment loans (Article 3.6, maximum 5 years).
4. Interest or profit rate and how it is calculated
Note whether the rate is fixed for a period, variable, or introductory, and how the variable part is calculated. Read fixed vs variable rate mortgages.
5. Insurance requirements
The offer should state which insurance is required. Ask for the cost so you can include it.
6. Mode and method of disbursement
For off-plan properties, the documents must show the milestones for progress payments. Article 2.1 requires your equity to be paid to the developer first, and payments against physically confirmed milestones.
7. Pre-payment policy
How partial and full early repayments work, and what they cost. Article 4 caps charges for early repayment or refinancing at the actual cost of breaking a fixed loan and/or the fees in Regulation No. 29/2011.
8. Fee schedule
All fees and charges in a separate schedule attached to the loan contract.
9. Total cost over the life of the loan
Article 4 states: "Borrowers should be provided with information setting out the total cost of the loan during its lifetime."
Example: what the total cost looks like
An illustrative calculation, with an example rate of 4% held constant for simplicity:
| Item | Amount |
|---|---|
| Property value | AED 1,500,000 |
| Your contribution (20%) | AED 300,000 |
| Loan amount | AED 1,200,000 |
| Term | 25 years |
| Example rate | 4% |
| Monthly installment | AED 6,334 |
| Total repaid | AED 1,900,213 |
| Total interest | AED 700,213 |
Fees from the schedule and insurance come on top. A real offer with a fixed period and a variable rate afterwards will show its own total cost based on the contract terms.
Your rights in the contract
- Signatures: you must sign each page and receive a copy signed by both parties (Article 4).
- No change without consent: terms cannot be altered during the tenor unless you agree in writing.
- Fee changes: at least two months' notice before implementation.
- Refinancing: "no impediment for borrowers to refinance with other institutions".
Our page on your rights in the mortgage contract goes further.
Checklist before you sign
| Check | Done |
|---|---|
| Property and development details are correct | ☐ |
| Contribution and loan amount match the appraised value and LTV | ☐ |
| Term and periodic installment are stated | ☐ |
| Rate type (fixed, variable, introductory) and calculation method are clear | ☐ |
| Rate after any fixed or introductory period is described | ☐ |
| Insurance requirements and their cost are known | ☐ |
| Disbursement method (and off-plan milestones) is stated | ☐ |
| Pre-payment policy covers partial and full repayment | ☐ |
| Separate fee schedule is attached | ☐ |
| Total cost of the loan over its lifetime is provided | ☐ |
| Every page is signed and you have a copy signed by both parties | ☐ |
Comparing two offers
Compare offers on the same basis: same loan amount, same term. Look at the payment during the first period, the reference used afterwards, the fee schedule, the pre-payment policy and the total cost. A smaller first payment does not always mean a smaller total cost.
FAQ
Is a pre-approval the same as an offer?
No. A pre-approval is an indicative assessment before you choose a property. The offer comes after the property is valued and your file is verified. See mortgage pre-approval in the UAE.
Can the lender change the fees after I sign?
Fee changes require at least two months' notice (Article 4). Other terms cannot change without your written agreement.
What if the total cost is not in the documents?
Article 4 says it should be provided. Ask your lender for it before signing.
Must I sign every page?
Yes. Article 4 requires you to sign each page and to receive a copy signed by both the lender and you.
Check the installment on any offer with the mortgage repayment calculator, or browse all UAE mortgage calculators.
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.
Related guides
Calculators for this guide: Mortgage calculator Dubai & UAE · Dubai mortgage for non-residents · Off-plan calculator Dubai