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Mortgage · Rule

The UAE mortgage stress test

To check that you could still pay if rates rose, lenders calculate your debt burden ratio at 2 to 4 percentage points above the current loan rate (Art. 3.1). With an introductory rate, the test uses the rate that applies after it ends.

Your figures

AED
AED

Car loan, personal loan, credit card payments.

Buyer
Property
%

Example value: enter the rate offered by your lender.

yrs

Maximum property price

AED 2,625,000

with AED 525,000 down payment (20%)
Maximum loanAED 2,100,000
Maximum monthly payment (50% DBR)AED 12,500
Loan allowed by the 50% ratioAED 2,368,156
Income cap (7x annual income)AED 2,100,000
Your limit comes from the income multiple cap.

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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Example: AED 1.2 million over 25 years

Rate testedMonthly paymentIncome for 50% DBR
4%AED 6,334AED 12,668
6%AED 7,732AED 15,463
7%AED 8,481AED 16,963
8%AED 9,262AED 18,524

4% is an example loan rate; 6 to 8% show the stress test at +2 to +4 points.

What else the lender checks

  • All existing debts, including credit cards (Art. 2.3).
  • Normal household expenditure (Art. 2.3).
  • Security of employment and lifestyle spending (Art. 2.3).
  • Lenders should not automatically apply the maximum 50% ratio (Art. 3.1).

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

Why did the bank approve less than the calculator?

Lenders stress-test at 2 to 4 points above your rate and count household spending, so their limit is usually below a 50% ratio at the loan rate (Art. 3.1 and 2.3).

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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