Your figures
Minimum for this profile: 20% (AED 300,000).
Example value: enter the rate offered by your lender.
25 years maximum (CBUAE).
Registration and transfer fees of the emirate, agent commission.
Monthly payment
AED 6,334
- Capital: AED 1,200,000 (63.15%)
- Interest: AED 700,213
Indicative simulation, not a loan offer, an approval or financial advice. Limits shown are the regulatory maximums; each lender applies its own credit policy. Interest rates are the ones you enter. Market figures are medians of Dubai Land Department registered data and describe the past, not future prices or returns.
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Terms A to Z
| Term | Meaning |
|---|---|
| Buyout / refinancing | Moving the loan to another lender; there should be no impediment to it (Art. 4). |
| Collateral | The property the loan is secured on (Art. 1); a first-ranking mortgage in the lender’s name is required (Art. 3.7). |
| Debt burden ratio (DBR) | Your debt repayments divided by your income (Art. 1); maximum 50% of gross salary and regular income (Art. 3.1). |
| Down payment | The part of the price you pay up front, which reduces the loan (Art. 1). It must come from your own resources (Art. 2.4). |
| Equity | The appraised value of the property minus all claims against it (Art. 1). |
| Interest-only period | A period paying only interest; allowed on investment loans for up to 5 years (Art. 3.6). |
| Introductory rate | A lower starting rate; the stress test uses the rate that applies after it ends (Art. 3.1). |
| Loan-to-value (LTV) | The loan outstanding divided by the appraised value of the property (Art. 1). The Central Bank sets maximums by profile (Art. 3.2). |
| Mortgage registration | Registration of the lender’s charge at the Dubai Land Department: 0.25% of the loan plus administrative fees. |
| Off plan | A property bought before completion; financing capped at 50% (Art. 3.2 C), paid in stages after your equity (Art. 2.1). |
| Owner occupier | The first house category, with the highest LTV; one property per borrower (Art. 3.2). |
| Profit rate | The Islamic finance equivalent of the interest rate; the regulation covers “interest (or profit)” (Art. 4). |
| Property appraisal | A full assessment of the property, including its value as collateral (Art. 1), made on site by an independent valuer (Art. 2.5). |
| Reducing balance | Repayment method where interest is charged on the capital still owed (Art. 3.5). |
| Stress test | The debt ratio checked at 2 to 4 points above the loan rate (Art. 3.1). |
| Tenor | The initial length of the loan (Art. 1); 25 years maximum (Art. 3.3). |
| Transfer fee | The Dubai Land Department fee on a sale: 4% of the price. |
The Central Bank rules in brief
They apply to every bank, finance company and Islamic lender in the UAE. They are maximums: a lender may be stricter.
- Expatriates: up to 80% of a first home below AED 5 million, 70% above, 60% for a second home or an investment (Art. 3.2).
- UAE nationals: up to 85% of a first home up to AED 5 million, 75% above, 65% for a second home or an investment (Art. 3.2).
- Off plan: up to 50% for every buyer, whatever the value or purpose (Art. 3.2 C).
- Debt burden ratio: 50% of gross salary and regular income, stress-tested 2 to 4 points above the loan rate (Art. 3.1).
- Maximum term 25 years; maximum loan 7 years of annual income for expatriates, 8 for nationals (Art. 3.3 and 3.4).
- The down payment must come from your own resources, not from a personal loan or a credit card (Art. 2.4).
Frequently asked questions
What is LTV in a UAE mortgage?
The loan divided by the appraised value of the property. The Central Bank caps it at 80% for an expatriate’s first home below AED 5 million.
What is DBR?
The debt burden ratio: all your monthly debt payments divided by your gross income, capped at 50%.
Go further
Our partner brokerage Cevitas offers a free pre-assessment of your financing before you commit to a property.