How to Get a Mortgage in the UAE

A UAE mortgage is fast to arrange by international standards, but the Central Bank rules on deposit and affordability are strict and non-negotiable. Understand them before you view, not after.

1. Know your maximum loan (LTV)

The UAE Central Bank sets loan-to-value caps:

• UAE nationals: up to 85% on a first home under 5M AED.
• Expat residents: up to 80% on a first home under 5M AED (20% deposit). Above 5M, the cap drops to 65%.
• Second property (any buyer): capped at 60%.
• Non-residents (buying from abroad): typically 50-60%, bank-dependent.

The deposit must come from your own funds — it cannot be borrowed.

2. Know your affordability ceiling (DBR)

Separately, your total monthly debt repayments — including the new mortgage, car loans and credit-card minimums — cannot exceed 50% of your monthly income (the Debt Burden Ratio). A high salary with existing loans can still fail this test. Clear or reduce other debt before applying.

3. Term and age limits

• Maximum term is usually 25 years.
• The loan must be repaid before you reach 65 (salaried) or 70 (self-employed). A 50-year-old salaried applicant is therefore capped nearer a 15-year term, which raises the monthly payment.

4. Choose the rate structure

• Fixed rate: locked for an intro period, commonly 1-5 years. Early 2026 fixed intro rates sit roughly in the 4.0-4.75% range depending on bank and profile. Predictable, slightly higher.
• Variable (EIBOR-linked): priced as EIBOR plus a margin. Moves with rates — cheaper when rates fall, riskier when they rise.

Most buyers take a fixed intro period, then it reverts to EIBOR-plus-margin. Read the reversion rate, not just the teaser.

5. Budget the mortgage fee stack

On top of your purchase costs, financing adds roughly 1-1.5% of the loan:

• Mortgage registration at DLD — 0.25% of the loan + 290 AED.
• Bank arrangement / processing fee — 0.5-1% of the loan + 5% VAT.
• Property valuation — 2,500-3,500 AED + VAT.
• Life and property insurance — mandatory; life cover is priced on loan size and age.

6. The six-step approval path

1. Pre-approval — submit income and liability documents; the bank issues a pre-approval valid 60-90 days confirming how much it will lend. Do this before you offer.

2. Find the property and sign Form F (the MOU) with the seller.

3. Valuation — the bank instructs a surveyor. If the valuation comes in below the price, you must fund the gap in cash; the bank lends against the lower figure.

4. Final offer letter (FOL) — the bank confirms the loan; you sign and accept.

5. NOC and transfer — the developer issues the No Objection Certificate; at the DLD trustee office the bank releases funds to the seller, the mortgage is registered, and the title deed is issued in your name with the bank's charge noted.

6. Repayment begins the following month.

7. Documents to prepare

For a salaried resident:

• Passport, Emirates ID and residence visa
• Salary certificate and latest payslips
• 6 months' bank statements
• Liability / credit-card statements

For self-employed: add trade licence, 2 years' audited financials and 6-12 months' company statements. For non-residents: expect additional income proof, a larger deposit, and a shorter approved lender list.

8. Two common failure points

• 1. The valuation gap. If you agree 1,500,000 but the bank values at 1,430,000, on an 80% LTV you receive 1,144,000 — and must find the 70,000 shortfall plus your deposit in cash. Never bid so high that the valuation can strand you.
• 2. Undisclosed liabilities. The bank pulls your Al Etihad Credit Bureau report. An old loan or a maxed card you forgot about can push you past the 50% DBR and sink the application. Check your own AECB score first.

The one-line summary

Get pre-approved before you shop, keep your total debt under half your income, and budget the loan's own 1-1.5% of fees on top of the purchase costs. A clean file closes in weeks.