UAE Mortgage Rules for Expats in 2026: What Was Eased and What Still Applies
- Published 29 Mar 2025
- Updated 10 November 2026
- 9 min read
- Data verified on 10 Nov 2026
In short
The UAE mortgage rules were eased for expats by raising the first-home loan-to-value cap from 75% to 80% below AED 5 million and from 65% to 70% above it, and by replacing the fixed age limit of 65 with each bank’s policy. The 60% cap on investment homes, 50% on off-plan, the 25-year term and the 50% debt burden ratio did not change. In 2026, the Central Bank Base Rate rose to 3.90% on 17 September.
CBUAE Rulebook, mortgage regulations 2013 and consolidated 8 Apr 2020 · CBUAE Base Rate, Sep–Oct 2026 · Khaleej Times, Nov 2026
80%first-home LTV
Maximum loan for an expatriate’s first home below AED 5 million, up from 75% in 2013
Source: CBUAE mortgage regulations, 2020 version
AED 75,000less deposit
Minimum deposit saved on an illustrative AED 1.5 million first home
Source: Valorisimo calculation from CBUAE caps
3.90%Base Rate
Central Bank of the UAE rate after the 17 September 2026 increase
Source: CBUAE, Oct 2026
Expatriate owner-occupiers gained the most from the amended Central Bank rules.Photo: © VALORISIMO
In this article · 9 sections
What did the UAE change in its mortgage rules for expats?
The Central Bank of the UAE raised the share of a first home that expatriates can borrow, from 75% to 80% below AED 5 million and from 65% to 70% above it, and dropped the fixed age limits that ended loans at 65.
The rules come from the Regulations Regarding Mortgage Loans (Circular 31/2013), which the Central Bank issued in late 2013 to cool property speculation and protect borrowers. The rulebook lists two later amendments, by Board Resolution 96/2019 and Resolution 31/2/2020, and a consolidated version dated 8 April 2020. That version is the one in force in November 2026, so every bank in every emirate applies these limits today.
Who gained most
The change mattered most for expatriate residents buying the home they live in, the largest group of mortgage borrowers. UAE nationals received the same five-point increase on first homes, to 85% and 75%. Investors gained nothing on loan-to-value: second homes and buy-to-let properties stayed at 60% for expatriates, and off-plan homes stayed at 50% for everyone.
For the complete current rule set, with the debt burden test and fees, see our UAE mortgage guide.
How do the current UAE mortgage rules compare with the 2013 rules?
The table sets the original 2013 text against the consolidated text in force today. Only two things moved: first-home LTVs and the age limit.
| Rule | 2013 original text | Current text (consolidated 8 April 2020) |
|---|---|---|
| Expatriate, first home below AED 5m | 75% LTV | 80% LTV |
| Expatriate, first home above AED 5m | 65% LTV | 70% LTV |
| UAE national, first home up to AED 5m | 80% LTV | 85% LTV |
| UAE national, first home above AED 5m | 70% LTV | 75% LTV |
| Second home or investment | 60% expats, 65% nationals | Unchanged |
| Off-plan, all buyers | 50% LTV | Unchanged |
| Age at last repayment | 65 for expatriates (70 if self-employed), 70 for nationals | Set by each lender’s policy |
| Maximum tenor | 25 years | Unchanged |
| Maximum loan | 7 years’ income (expats), 8 years (nationals) | Unchanged |
| Debt burden ratio | 50% of income | Unchanged |
Source: Central Bank of the UAE Rulebook, Regulations Regarding Mortgage Loans (Circular 31/2013): version 1 (2013) and version 2 consolidated as of 8 April 2020, amended by Board Resolutions 96/2019 and 31/2/2020; read 10 Nov 2026.
Why the ceilings matter more than the headlines
These percentages are maximums. The regulation says lenders should adopt more conservative ratios where risks are higher and must not rely on the property value instead of assessing your ability to repay. A bank can offer an expatriate 75% even though 80% is allowed, and many do for borrowers with variable income. The LTV is also calculated on the bank’s independent valuation, which must not include expected price growth.
How much less cash do expats need under the eased rules?
Five percentage points of loan-to-value is a large amount of cash on a typical UAE home price.
| Illustrative first-home price | Minimum deposit, 2013 rules | Minimum deposit, current rules | Cash saved |
|---|---|---|---|
| AED 1,500,000 | AED 375,000 (25%) | AED 300,000 (20%) | AED 75,000 |
| AED 3,000,000 | AED 750,000 (25%) | AED 600,000 (20%) | AED 150,000 |
| AED 6,000,000 | AED 2,100,000 (35%) | AED 1,800,000 (30%) | AED 300,000 |
Illustrative calculation by Valorisimo for an expatriate buying a ready first home, based on the CBUAE LTV caps above. Deposits exclude registration and bank fees.
On an AED 1.5 million apartment, the minimum deposit fell from AED 375,000 to AED 300,000. For a family villa at AED 6 million, the saving reaches AED 300,000. The deposit still has to come from your own resources: the regulation forbids financing it with a personal loan or a credit card, and banks check the source of funds.
The deposit is not the whole bill
Registration fees are added on top: 4% of the price at the Dubai Land Department (2% buyer and 2% seller on the DLD schedule), and about 2% in Abu Dhabi, usually split, according to Bayut in October 2026. Mortgage registration costs 0.25% of the loan in Dubai. Our guide to mortgages in Dubai itemises these costs with a full example.
Which UAE mortgage rules did not change for expats?
Everything that limits how much debt you can carry stayed in place. In practice, these rules decide your loan more often than the LTV does.
- Debt burden ratio: all monthly debt payments, including the new mortgage, cannot exceed 50% of gross income.
- Stress test: banks must test the loan at 2 to 4 percentage points above its current rate.
- Income multiple: an expatriate can borrow at most 7 years of annual income; a UAE national 8 years.
- Tenor: 25 years maximum.
- Investment property: 60% LTV for expatriates, and at least two months' rent deducted from counted income.
- Off-plan: 50% LTV for every buyer, with the buyer's own funds used first during construction.
- One first home per borrower: any further property is financed at the second-home cap.
The income multiple is often the binding limit for expatriates. A buyer earning AED 25,000 a month (AED 300,000 a year) can borrow at most AED 2.1 million whatever the property is worth, and less if they have a car loan or credit card debt. If you are planning a second purchase, see how to finance a second home in the UAE.
Is there still an age limit for UAE mortgages?
Not in the Central Bank text any more. The 2013 version set a hard limit; the current version leaves it to each bank.
Under the original rules, the last repayment had to fall before age 65 for expatriates, or 70 if self-employed, and before 70 for UAE nationals. A 45-year-old salaried expat could therefore get at most a 20-year loan. The consolidated version now says that the maximum age at the last repayment should be determined by mortgage providers in line with their own risk and lending policies.
What still protects older borrowers
Where a loan runs beyond expected retirement age, the bank must check that the outstanding balance at retirement can be repaid with a debt burden ratio of 50% of post-retirement income. Banks also cannot count the end-of-service gratuity as a repayment source. In practice, many lenders keep internal age caps, so ask each bank for its limit before you compare offers.
What does the 2026 interest rate rise mean for expat borrowers?
The eased LTV rules lower the cash needed upfront; interest rates decide what you pay every month. In 2026, rates moved up for the first time in this cycle.
The Central Bank of the UAE raised its Base Rate by 25 basis points, from 3.65% to 3.90%, on 17 September 2026, and kept it at 3.90% on 28 October 2026. Variable mortgages priced on EIBOR plus a margin adjust at their next reset. Fixed-rate borrowers are protected until their fixed period ends. Khaleej Times reported introductory fixed rates from about 3.75% and three-year packages at about 3.89% to 4% in November 2026.
| Scenario | Rate | Monthly repayment on AED 1.2m, 25 years |
|---|---|---|
| Introductory fixed rate, Nov 2026 | 3.75% | AED 6,170 |
| Three-year fixed rate, Jul 2026 | 3.95% | AED 6,301 |
| 3-month EIBOR + 1%, Q2 2026 | 4.74% | AED 6,835 |
| Same loan if a variable rate rose by 0.25 point | 4.99% | AED 7,008 |
| Bank stress test, +2 points on 3.95% | 5.95% | AED 7,695 |
Rates: Khaleej Times, 12 Jul and 2 Nov 2026; CBUAE Base Rate +0.25 point on 17 Sep 2026; stress range per CBUAE mortgage regulations. Repayments: illustrative annuity calculation.
Higher rates are already visible in buyer behaviour. Betterhomes reported that mortgage-backed deals fell from 64% of its Dubai residential sales in Q2 2026 to 56% in Q3, while cash purchases rose from 36% to 44%, according to Khaleej Times.
Fixed or variable after the hike?
If your budget is close to the 50% debt burden limit, a fixed rate for two to three years removes the risk of further increases during that period. If you expect to sell or repay within a few years, check the early settlement cost, capped at 1% of the outstanding balance or AED 10,000, whichever is less, plus the bank’s cost of breaking a fixed rate.
How can expats make the most of the current mortgage rules?
The rules give expatriates room to borrow; banks decide who actually gets the maximum.
Profiles banks prefer
Mortgage advisers quoted by Khaleej Times in July 2026 said salaried residents working for established employers are in the strongest position. Self-employed applicants need audited statements, VAT returns and proof of sustained operations, and buyers in cyclical sectors such as aviation, hospitality, real estate or oil and gas may be offered lower limits.
Practical steps
Clear or reduce other debts before applying, because they count towards your 50% ratio. Get a pre-approval before signing a purchase agreement. Use your first-home allowance on the property you will actually live in, since each borrower can claim it only once. And compare total cost, not just the headline rate: fees, insurance and the margin after the fixed period. If you are relocating, our guide to living in Abu Dhabi as an expat covers rents and areas to compare with buying.
What should expats remember about UAE mortgage rules in 2026?
The easing was real but targeted: it helps owner-occupiers, not investors.
Watch out
The Central Bank can change these ratios for the market or for an individual bank, and lenders may apply stricter limits than the regulation. Confirm the LTV, age limit and fees in a written offer from your bank before you commit to a purchase.
Frequently asked questions
What is the maximum mortgage for expats in the UAE?
For a first home, an expatriate can borrow up to 80% of the bank’s valuation below AED 5 million and 70% above. Second homes and investment properties are capped at 60%, and off-plan homes at 50%. The loan also cannot exceed 7 years of annual income or push debt payments above 50% of income.
When did the UAE ease mortgage rules for expats?
The Central Bank amended its 2013 mortgage regulations through Board Resolution 96/2019 and Resolution 31/2/2020. The consolidated version in force today is dated 8 April 2020 and contains the higher 80% and 70% first-home caps for expatriates.
Is there an age limit for a mortgage in the UAE for expats?
The original 2013 rules required the last repayment before age 65 (70 if self-employed). The current regulation leaves the maximum age to each lender’s policy, but loans running past retirement must stay affordable at a 50% debt ratio on retirement income. Most banks still set their own limits.
Did the eased rules change the deposit for investment properties?
No. An expatriate buying a second home or a property to rent out still needs at least 40% of the value, because the cap stayed at 60%. Off-plan purchases still need 50% for every buyer, and banks must use the buyer’s own funds before releasing loan money during construction.
Will UAE mortgage rates go down in 2026?
Not so far. The Central Bank raised its Base Rate from 3.65% to 3.90% on 17 September 2026 and held it on 28 October. Rates follow US policy because of the dirham peg, so future moves depend largely on the US Federal Reserve.
Figures are indicative as of the date shown: check them with official sources before any decision.
- For information only; this is not tax, legal or financial advice.
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