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Mortgage · Your profile

Islamic home finance in the UAE

Islamic home finance replaces interest with a profit rate under a Sharia-compliant structure. The Central Bank regulation applies to every mortgage provider and refers to “interest (or profit)”: the LTV, debt burden ratio, 25-year term and disclosure rules are the same (Art. 1 and 4).

Your figures

AED
Buyer
Property
%

Minimum for this profile: 20% (AED 300,000).

%

Example value: enter the rate offered by your lender.

yrs

25 years maximum (CBUAE).

%

Registration and transfer fees of the emirate, agent commission.

Monthly payment

AED 6,334

AED 1,200,000 borrowed over 25 years
Within the Central Bank limit: up to 80% financing for this profile.
  • Capital: AED 1,200,000 (63.15%)
  • Interest: AED 700,213
Total repaidAED 1,900,213
Income needed (50% DBR)AED 14,286 / month
Cash at purchase (down payment + fees)AED 300,000

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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What stays the same

  • Maximum LTV by profile and value (Art. 3.2).
  • 50% debt burden ratio and stress test (Art. 3.1).
  • 25-year maximum term (Art. 3.3).
  • Publication of all fees, charges and profit rates, with the calculation method (Art. 4).

Using the calculator

Enter the profit rate offered as the rate: the monthly payment, down payment and income needed are calculated the same way.

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).

Related rules

Frequently asked questions

Do the Central Bank limits apply to Islamic home finance?

Yes. The regulation covers all mortgage loan providers and refers to interest or profit (Art. 1 and 4).

Go further

Our partner brokerage Cevitas offers a free pre-assessment of your financing before you commit to a property.

Official sources

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