Finance & Mortgage · 7 min · 2026-10-23
UAE Mortgage LTV Limits Explained: Every Category, the AED 5M Threshold and Appraised Value
The Central Bank of the UAE caps how much of a property a lender can finance. Here is every LTV limit, how the AED 5 million threshold works and why the appraised value, not the price, is what counts.
UAE mortgage LTV limits in one paragraph
In the UAE, the maximum loan-to-value (LTV) ratio is set by the Central Bank of the UAE (CBUAE) in its Regulations Regarding Mortgage Loans (Circular 31/2013, Article 3.2). For a first home, expatriates can borrow up to 80% of the property value below AED 5 million and up to 70% above it; UAE nationals can borrow up to 85% up to AED 5 million and 75% above. For a second home or an investment property the cap is 60% for expatriates and 65% for nationals, whatever the value. For any property bought off plan, the cap is 50% for everyone. The percentage always applies to the appraised value of the property, not simply the price you agreed.
What LTV means
Article 1 of the regulation defines LTV as "the ratio of the amount of the loan outstanding to the appraised value of the residential property". Two consequences follow:
- The lower the LTV, the larger the share you pay from your own money (the down payment).
- The ratio is measured against the value confirmed by an independent valuer, which may differ from the purchase price.
The full LTV table (CBUAE Article 3.2)
| Buyer | Property | Value | Maximum LTV | Minimum down payment |
|---|---|---|---|---|
| Expatriate | First home (owner occupier) | Below AED 5M | 80% | 20% |
| Expatriate | First home (owner occupier) | Above AED 5M | 70% | 30% |
| Expatriate | Second home or investment | Any value | 60% | 40% |
| UAE national | First home (owner occupier) | AED 5M or less | 85% | 15% |
| UAE national | First home (owner occupier) | Above AED 5M | 75% | 25% |
| UAE national | Second home or investment | Any value | 65% | 35% |
| All buyers | Off plan | Any value | 50% | 50% |
Article 3.2 also states that each borrower can claim only one property under the first-home category. A second purchase, even if you plan to live in it, falls under the second-home limits.
How the AED 5 million threshold works
The threshold is a simple switch based on the property value, not a sliding scale. A property valued at AED 4.9 million gets the higher first-home LTV; one valued at AED 5.2 million gets the lower one on the whole amount, not just the part above AED 5 million.
| Example (expatriate, first home) | Value | LTV | Maximum loan | Down payment |
|---|---|---|---|---|
| Apartment | AED 1,500,000 | 80% | AED 1,200,000 | AED 300,000 |
| Villa | AED 4,000,000 | 80% | AED 3,200,000 | AED 800,000 |
| Villa | AED 6,000,000 | 70% | AED 4,200,000 | AED 1,800,000 |
Note the wording of the regulation for expatriates: "less than AED 5 million" for 80% and "more than AED 5 million" for 70%. For a value of exactly AED 5 million, ask your lender how its policy applies. Our dedicated page on mortgages above AED 5 million goes further.
Why the appraised value matters
Article 2.5 requires an independent on-site valuation by a qualified third party before any irrevocable commitment to lend, and says appraisal reports "should not reflect expected future house price appreciation". The LTV is then applied to that value.
If the valuation comes in below the price, the loan shrinks and your cash contribution grows:
| Item | Amount |
|---|---|
| Agreed price | AED 2,000,000 |
| Independent valuation | AED 1,900,000 |
| Maximum loan at 80% of valuation | AED 1,520,000 |
| Cash needed for the price | AED 480,000 |
| Cash you may have planned (20% of price) | AED 400,000 |
| Extra cash needed | AED 80,000 |
We explain this situation in detail in what happens when the valuation is below the price.
LTV limits are a ceiling, not a promise
Article 2.4 makes clear that the LTV ratios "are the maximum allowable" and that lenders "should adopt more conservative LTV ratios where the underlying risks… are higher". Each lender sets its own policy within these limits. In practice the loan you are offered is the smallest of three numbers:
- The LTV cap applied to the appraised value.
- What your income supports under the 50% debt burden ratio (Article 3.1), after a stress test.
- The income multiple cap: 7 times annual income for expatriates, 8 times for nationals (Article 3.4).
So a high LTV does not help if your income cannot support the loan. See the debt burden ratio explained for the second test.
Your down payment must be your own money
Article 2.4 adds that the down payment "should be drawn from the borrower's own resources and not from other sources of borrowing (including personal loans or credit cards)". Plan your savings accordingly, and remember that purchase fees come on top. Our guide to how much cash you really need lists them.
Off-plan purchases: 50% for everyone
Because of "the long term nature of the development process and the higher level of risk to completion", the regulation caps off-plan LTV at 50% "regardless of purpose, value, or category of purchaser". Article 2.1 also requires the lender to pay the developer with your equity first, before releasing any loan money, and only against construction milestones physically confirmed by the lender or an independent professional. Separately, Dubai Law No. 8 of 2007 requires developers to pay buyers' money into a RERA-approved escrow account dedicated to the project. More in our off-plan mortgage rules.
FAQ
Is the 80% LTV for expats calculated on the price or the valuation?
On the appraised value (Article 1 and Article 2.5). If the valuation equals the price, the two give the same result. If it is lower, the loan is based on the lower figure.
Can I get 80% on a second property if I sold my first home?
The first-home category is for one owner-occupied property per borrower. Whether a new purchase after a sale qualifies is a question for your lender, which applies its own policy within Article 3.2.
Does the 50% off-plan cap apply to UAE nationals too?
Yes. Article 3.2.C applies to all categories of purchaser.
Can a lender offer less than the maximum LTV?
Yes. The regulation sets maximums, and each lender can be more conservative depending on the property, the borrower and its own risk policy.
Check your own numbers in seconds with our LTV calculator for the UAE.
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