Overview
Every home loan in the UAE follows the Central Bank of the UAE's mortgage regulations. They cap how much of the price a bank may lend (the loan-to-value, or LTV) and how much of your income can go to repayments.
How much you can borrow
| Property | Expats | UAE nationals |
|---|---|---|
| First home, AED 5 million or less | Up to 80% | Up to 85% |
| First home, above AED 5 million | Up to 70% | Up to 75% |
| Second and later homes | Up to 60% | Up to 65% |
| Off-plan property | Up to 50% | Up to 50% |
So as an expat buying a first home of AED 5 million or less, you need a down payment of at least 20%.
Requirements
- Monthly debt repayments, including the new loan, of no more than 50% of your income
- A loan term of at most 25 years
- Banks' own rules on minimum salary, length of employment and age (many require the loan to end by 65 for employees)
Costs
On top of the down payment, plan for the 4% Dubai Land Department transfer fee, 0.25% of the loan to register the mortgage, a valuation fee and the bank's arrangement fee (up to 1% of the loan).
Timeline
A pre-approval usually takes a few days; the full approval follows the valuation, within one to three weeks.
Recommended next step
Ask two or three banks for a pre-approval before you make an offer, so you know your budget and can sign Form F with confidence.