The UAE mortgage market is regulated by the Central Bank of the UAE, which sets limits on loan-to-value (LTV) ratios, maximum tenure, and stress-test requirements for all licensed banks. This calculator applies the current 2026 rules automatically based on your residency status and property value.
UAE Nationals, expat residents with a valid UAE visa, and non-residents can all access UAE mortgage financing. Eligibility depends on income, employment stability, and your Al Etihad Credit Bureau score. Salaried applicants typically need a minimum monthly salary of AED 15,000–25,000 depending on the bank.
Most UAE banks offer a 1–5 year fixed initial period followed by a variable rate tied to EIBOR (Emirates Interbank Offered Rate) plus a margin. When comparing offers, always check the revert rate — the variable rate after the fixed term ends — as this significantly impacts your total cost over a 25-year term.
The UAE Central Bank regulates minimum down payments to protect financial stability. These rules apply to all regulated mortgage lenders operating in the UAE.
| Property Value | Min Down Payment | Max LTV |
|---|---|---|
| Up to AED 5M | 15% | 85% |
| Above AED 5M | 20% | 80% |
| Investment / 2nd property | 25% | 75% |
| Property Value | Min Down Payment | Max LTV |
|---|---|---|
| Up to AED 5M | 20% | 80% |
| Above AED 5M | 30% | 70% |
| Investment / 2nd property | 35% | 65% |
| Property Value | Min Down Payment | Max LTV | Max Term |
|---|---|---|---|
| All values | 35% | 65% | 15 years |
Non-residents face stricter LTV limits. Fewer banks offer non-resident products, and rates are typically 0.5–1% higher than resident rates. Banks including HSBC, Emirates NBD and FAB have dedicated non-resident mortgage products.
Many buyers underestimate the total cash required on day one. Beyond the down payment, several mandatory fees are due simultaneously at transfer.
The Dubai Land Department charges 4% of the purchase price as a property transfer fee. This is due at the time of transfer and cannot be financed. On a AED 2M property, that is AED 80,000 — paid the same day as your down payment.
💡 Tip: Some developers cover the DLD fee as a promotional offer. Always confirm with the developer before signing an SPA (Sales & Purchase Agreement).
Charged by the DLD at 0.25% of the loan amount plus AED 290 knowledge fee. Paid once at mortgage registration — not an annual fee.
Expect AED 2,500–5,000 for a RICS-certified property valuation, plus a bank processing fee of around 0.5–1% of the loan amount (most banks cap this at AED 10,000). Always read the Loan Offer Letter carefully before signing.
The DLD transfer fee (4%) and your down payment must both be paid on the same day — transfer day. This means you need the full combined amount liquid and accessible. On a AED 2M property at 20% down: AED 400,000 down payment + AED 80,000 DLD = AED 480,000 due in a single transaction.
For off-plan properties, the mortgage does not typically start until handover. During construction, you pay the developer's payment plan directly. Only at handover does the bank disburse the mortgage, settle the remaining balance, and begin your monthly repayments.
Service charges (AED 10–50 per sqft annually), home insurance (required by lenders), life insurance, and agent commissions (typically 2% — not included in the calculator) are costs buyers frequently forget. Always model the full first-year cost before committing.
Making additional lump-sum overpayments — most UAE banks allow 20–25% of the outstanding balance annually without penalty — can dramatically reduce your total interest. Refinancing after the initial fixed period to a lower-rate lender is also common. Even 0.5% lower over a 25-year term on a AED 1.5M loan saves approximately AED 95,000 in interest.
For a AED 2,000,000 apartment purchase by a UAE resident expat, with 20% down payment, 4.49% indicative rate, 25-year term: