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Mortgage · Your profile

Land and construction mortgages in the UAE

A mortgage under the Central Bank regulation covers constructing, buying or renovating a home, and also buying or developing land for these purposes (Art. 1). Construction financing follows strict stage-payment rules.

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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Stage payments

  • Your equity share of the construction price is paid to the contractor first (Art. 2.1).
  • Each payment follows a milestone physically confirmed by the lender or an independent professional (Art. 2.1).
  • Titles must be free of encumbrances (Art. 2.5); gifted land to UAE nationals needs confirmation from the Diwan or housing programme and the land department (Art. 2.5).

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

Can I get a mortgage to build a villa in the UAE?

Construction is within the regulation’s definition of a mortgage (Art. 1). Payments are released against verified milestones after your own share (Art. 2.1).

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

Official sources

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