Getting a Mortgage in Dubai: the LTV Caps, the 50% Rule and the Cash the Bank Will No Longer Lend You

Someone reads that a resident expatriate can borrow 80% of a property's value, does the arithmetic on a AED 2 million apartment, and concludes they need AED 400,000.

They need closer to AED 540,000.

The gap is not a hidden charge or a bank being difficult. It is the combination of two rules that work independently of each other, plus a change made in early 2025 that removed the one piece of flexibility buyers used to rely on. None of it is obscure. It is simply not what the 80% figure implies.

The Two Numbers That Decide What You Can Borrow

Dubai mortgage lending runs on Regulations Regarding Mortgage Loans, issued by the Central Bank of the UAE as Circular 31/2013 and amended since. Two ratios do the work, and both must be satisfied.

The first is loan to value, which caps the loan against the property.

Two details in that table catch people out. The AED 5 million threshold is a cliff rather than a slope, so a property at AED 5.1 million drops an expatriate buyer from 80% to 70% on the whole amount. And second property means second property, not second mortgage: owning a flat outright and buying another moves you to the lower band.

The Ratio That Actually Decides It

The second number is the debt burden ratio, capped at 50% of gross monthly income. Every obligation counts: the new mortgage, car finance, personal loans, credit card minimums, school-fee instalments, and any loan guaranteed for somebody else.

For most applicants this is the binding constraint, not the LTV. The LTV tells you the largest loan the property can support. The debt burden ratio tells you the largest loan you can support, and it is frequently the smaller of the two. Applicants who are refused are usually refused here.

The regulation adds a second income test: the loan should not exceed eight years of total income for UAE nationals or seven years for expatriates. In practice the 50% ratio bites first.

Term, Age and the End of the Loan

The maximum term is 25 years. The maximum age at the final repayment is 70 for UAE nationals, and 65 for expatriates, extended to 70 where the borrower is self-employed.

That age limit works backwards into the term. A salaried expatriate taking a mortgage at 50 is not being offered 25 years, whatever the advertisement says. They are being offered 15, and the monthly payment on 15 years is a different proposition entirely. Run your own numbers on the term you will actually be given.

The 2025 Change Most Guides Still Get Wrong

Until early 2025, buyers routinely added the Dubai Land Department transfer fee and the agency commission to the loan. From 1 February 2025, following Central Bank direction, banks stopped financing them.

The practical effect is that roughly six to seven per cent of the purchase price moved from the loan to the buyer's own cash: 4% to the Land Department, and 2% commission where it applies. On the AED 2 million apartment above, that is AED 120,000 that used to be borrowable and no longer is.

This is why the deposit and the cash requirement are not the same number.

The headline says 20%. The bank account needs 27% or so.

What the Mortgage Itself Costs

Separate from the purchase costs, the financing carries its own charges:

• Mortgage registration at the Land Department, 0.25% of the loan amount plus AED 290. Note that this is charged on the loan, not the price.
• Valuation, typically AED 2,500 to 3,500, payable whether or not the application proceeds.
• Bank arrangement or processing fee, commonly around 1% of the loan, capped by some lenders.
• Life insurance, usually mandatory, priced on age and loan size, and materially more expensive for older borrowers.
• Property insurance, a smaller annual premium.

Life insurance is the item most often left out of comparisons, and for a borrower in their fifties it can outweigh a modest difference in interest rate.

Fixed, Variable, and the Number Nobody Reads

Almost every Dubai mortgage is fixed for an opening period and then reverts to EIBOR plus a margin for the remainder of the term.

The fixed rate is what gets advertised. The margin is what you live with. On a 25-year loan with a three-year fix, the fixed rate governs 12% of the term and the revert margin governs the other 88%. A product with a slightly higher fix and a materially lower margin is usually the better loan, and it is almost never the one at the top of the comparison table.

At the time of writing, fixed offers in the market ran from roughly 3.75% for a one-year fix to a little over 4% for five years, with variable products priced at three-month EIBOR plus a margin. Rates move; the structure does not. Ask for the revert margin in writing before you compare anything.

Early settlement is capped by Central Bank rules at 1% of the outstanding balance or AED 10,000, whichever is lower, on full or partial repayment. It is a genuine protection and worth knowing before a bank quotes you something larger.

Buying From Outside the UAE

Non-residents can and do get Dubai mortgages, with three practical differences.

Fewer banks offer them. The loan to value is lower, typically 50% to 60% and most often 50%, set by each bank's own policy rather than by a published Central Bank category for non-residents. And the file is heavier: an international passport, proof of address, six months of overseas bank statements, income evidence from the country of residence, and a credit report from home.

Expect five to ten working days for a decision rather than two to five, and expect some banks to lend only against property in a defined list of developments.

Pre-Approval, and What It Is Not

A pre-approval takes about five to seven working days with a complete file and is normally valid for 60 to 90 days. It confirms what the bank will lend you, on the strength of your income and liabilities.

It says nothing about the property. Final approval follows the valuation, and a valuation below the agreed price does not reduce your deposit, it increases it: the bank lends its percentage of the valuation, not of what you agreed to pay. On a hot unit in a fast-moving building, that is the risk worth pricing in advance.

Frequently Asked Questions

How much deposit do I need to buy in Dubai with a mortgage?

For a resident expatriate buying a first home at AED 5 million or less, the minimum deposit is 20% of the price. But since February 2025 banks no longer finance the 4% transfer fee or the 2% commission, so the cash actually required is closer to 27% of the price once fees are included.

Can a non-resident get a mortgage in Dubai?

Yes. Fewer banks offer non-resident lending and the loan to value is usually capped at 50%, occasionally 60%, with more documentation and a longer decision time. Some lenders restrict it to a list of approved developments.

What is the debt burden ratio and why was my application refused?

It is the Central Bank cap limiting total monthly debt repayments to 50% of gross monthly income, counting existing loans, credit cards and guarantees as well as the new mortgage. Most refusals come from this rule rather than from the loan-to-value limit.

Can I get a mortgage on an off-plan property in Dubai?

Yes, but financing for under-construction property is capped at 50% of value for every category of buyer. Most off-plan purchases are funded through the developer's payment plan instead, with a mortgage arranged at handover.

What is the mortgage registration fee in Dubai?

It is 0.25% of the loan amount plus AED 290, paid to the Dubai Land Department. Because it is charged on the loan rather than the purchase price, a larger deposit reduces it.

How long can a Dubai mortgage run?

Up to 25 years, subject to the age limit at final repayment: 70 for UAE nationals, 65 for salaried expatriates, and 70 for the self-employed. The age rule shortens the term for older borrowers regardless of the headline maximum.

Is a fixed or variable mortgage better in Dubai?

The more useful question is what the loan reverts to. Nearly all fixed products revert to EIBOR plus a margin after the fixed period, and that margin applies for most of the term. Compare revert margins, not just opening rates.

What does it cost to settle a Dubai mortgage early?

Central Bank rules cap early settlement at 1% of the outstanding balance or AED 10,000, whichever is lower, for full or partial repayment.

The Short Version

Work out the debt burden ratio before you look at property, because that is the number that decides what you can borrow. Assume the loan to value is a ceiling rather than a promise. Budget six to seven per cent of the price in cash on top of the deposit, because the bank will not lend it any more. And when you compare offers, compare the revert margin and the life insurance premium, not the rate on the poster.

A buyer who does that arrives at the trustee office with the right cheque. One who works from the 80% headline finds out two weeks before transfer that they are AED 140,000 short.

Loan-to-value caps, fee schedules and lending policy change, and individual banks apply their own criteria within the Central Bank framework. Figures here reflect what was published at the time of writing in September 2026 and are general information, not financial advice. Confirm current terms with the lender and the Dubai Land Department before committing.