UAE Mortgage Guide: How Home Loans Work in Dubai & Abu Dhabi
In short: A UAE mortgage is a home loan from a UAE bank that lets residents and non-residents finance up to 80% of a property's value, repaid with interest over up to 25 years.
Buying property in the UAE rarely means paying the full price in cash. Most buyers use a mortgage - a loan secured against the property - to spread the cost over many years while paying interest to the bank.
This guide explains how UAE mortgages work in plain language: who can borrow, how much deposit you need, what fees to expect, and how to estimate your monthly payment before you apply.
Key concepts
- Loan-to-Value (LTV)
- The percentage of the property price the bank will lend. UAE residents can borrow up to 80% on a first home under AED 5m.
- Down payment
- The cash portion you pay upfront - typically 20% for residents and 40–50% for non-residents.
- EIBOR
- The Emirates Interbank Offered Rate that variable mortgage rates are benchmarked against.
- Tenure
- The repayment period, up to 25 years, capped so the loan ends before you turn 70 (self-employed: 65).
Who can get a mortgage in the UAE?
UAE nationals, residents with a valid Emirates ID, and non-resident foreign buyers can all access mortgages, though the terms differ. Salaried applicants usually need to earn at least AED 15,000 per month; self-employed applicants are assessed on business income and bank statements.
Banks check your debt-burden ratio (DBR) - total monthly loan repayments must not exceed 50% of your income.
How much deposit do you need?
The Central Bank of the UAE sets minimum down payments. These are the caps most banks follow:
| Buyer | Property under AED 5m | Property over AED 5m |
|---|---|---|
| UAE national | 15% | 20% |
| Expat resident | 20% | 30% |
| Non-resident | 40–50% | 40–50% |
| Off-plan (any) | 50% | 50% |
Fixed vs variable rates
A fixed rate locks your interest for an introductory period (usually 1–5 years), giving predictable payments. After that it reverts to a variable rate - typically EIBOR plus a margin. A variable rate moves with the market from day one: cheaper when rates fall, costlier when they rise.
- Choose fixed if you want budgeting certainty and expect rates to rise.
- Choose variable if you expect rates to fall or plan to sell/refinance soon.
Fees you should budget for
Beyond the deposit, a UAE purchase carries one-off costs of roughly 6–7% of the price:
| Fee | Typical amount |
|---|---|
| DLD transfer fee (Dubai) | 4% of price |
| Mortgage registration | 0.25% of loan + AED 290 |
| Bank arrangement fee | 0.5–1% of loan |
| Property valuation | AED 2,500–3,500 |
| Agency commission | 2% of price |
Key takeaways
- Residents can finance up to 80% of a home; non-residents typically 50–60%.
- Budget 6–7% of the price for one-off fees on top of your deposit.
- Your monthly repayment plus other debts must stay under 50% of income.
- Fixed rates give certainty; variable rates can be cheaper but carry risk.