Dubai's mortgage market is more accessible than many buyers expect, including for people who do not live in the UAE. The constraint is rarely whether you can borrow. It is how much, and therefore how much cash you must bring.
Loan-to-value limits
These are set by Central Bank regulation and are the most important numbers in the process.
- UAE nationals: up to 85% for a first property under AED 5m.
- Expatriate residents: up to 80% for a first property under AED 5m, reducing to around 70% above that value.
- Second and subsequent properties: lower caps, typically around 60% to 65%.
- Off-plan purchases: generally capped near 50%, and many lenders will only finance at or near handover rather than during construction.
- Non-residents: commonly 50% to 60%, varying considerably by bank and by nationality.
So a non-resident buying a AED 3m apartment should plan on roughly AED 1.2m to AED 1.5m of equity, plus around 7% to 8% in transaction costs.
Eligibility in practice
Lenders assess income stability, existing debt and age at maturity. Salaried applicants generally need several months of employment and a minimum monthly income, often around AED 15,000 to AED 25,000 depending on the bank. Self-employed applicants face more documentation, typically two years of audited accounts and business bank statements.
Debt burden matters: total monthly obligations including the new mortgage are usually capped around 50% of income. Existing credit cards and car loans reduce what you can borrow more than most applicants anticipate.
Loan terms typically run up to 25 years, with maturity capped by age, commonly 65 for salaried and 70 for self-employed borrowers.
Rates and structures
Both fixed and variable products are available. Fixed rates are usually offered for an initial period of one to five years, then revert to a variable rate benchmarked to EIBOR plus a margin. The reversion rate is where the real long-term cost sits, and it is frequently glossed over during the sales conversation. Ask what the rate becomes after the fixed period ends, and model your payment at that level.
Watch for early settlement charges, generally capped at 1% of the outstanding balance or AED 10,000, whichever is lower. If you may sell or refinance, this matters.
The documents you will need
- Passport, visa and Emirates ID for residents; passport and proof of address for non-residents.
- Six months of personal bank statements, sometimes twelve for non-residents.
- Salary certificate and recent payslips, or audited accounts if self-employed.
- Existing liability statements.
- Property documents once a specific purchase is identified.
Get pre-approved first
Pre-approval takes a few days to a couple of weeks, is typically valid for 60 to 90 days, and tells you your actual budget rather than your assumed one. It also strengthens your position with sellers, who reasonably prefer buyers who have financing arranged. Making offers before pre-approval is the most common cause of transactions falling apart late.
One caution: the bank's valuation, not the agreed price, determines the loan amount. If a valuation comes in below the price, you cover the difference in cash. Build a margin for that into your planning.
