UAE Mortgage Guide: 2025
In 2025, the real estate market in the United Arab Emirates remains highly attractive to investors, supported by economic stability, the strength of the dirham, and the opportunities offered by the UAE’s Vision 2030. Whether you are a UAE national, a resident, or a non-resident, a mortgage is one of the main ways to acquire property in Dubai, Abu Dhabi, or other major cities.
This guide provides a comprehensive overview of property financing in the UAE in 2025. You will discover:
- Mortgage rules based on your status (citizen, expatriate resident, or non-resident)
- The most active banks and their eligibility criteria
- Best practices for securing a competitive mortgage and optimizing your financing
1. Who Can Borrow and Loan-to-Value (LTV) Limits
The amount a bank will finance (Loan-to-Value, LTV) depends on the borrower’s status:
Category | First Property | Second Property | Off-Plan Property |
UAE Nationals | ≤ 5M AED: LTV 80% | > 5M AED: LTV 70% | LTV 65% |
Expat Residents (UAE Visa) | ≤ 5M AED: LTV 75–80% | > 5M AED: LTV 65–70% | ≈ 60% |
Non-Residents | 50–60% (depending on the bank) | 50–60% | 50%, stricter conditions |
Note: LTV represents the percentage of the property price financed by the bank. For example, an LTV of 60% means a 40% down payment.
2. Banks and Eligibility Criteria
Major Local Banks
- Emirates NBD: Open to qualified residents and non-residents. LTV and conditions vary depending on the borrower’s profile and property type.
- Abu Dhabi Commercial Bank (ADCB): Competitive rates for residents; stricter documentation and more conservative terms for non-residents.
- Mashreq Bank: Flexible loan terms and types, including off-plan properties.
- RAKBANK: Offers both residential and commercial loans, often attractive to long-term expatriates.
International Banks
- HSBC UAE, Standard Chartered, Citibank: Solutions for residents and non-residents with stable foreign income, requiring proof of income and credit reports.
Typical Eligibility Requirements
- Stable income (local or international)
- 6–12 months of bank statements
- No significant outstanding debts
- Proof of residence or legal status depending on profile
- For self-employed borrowers: audited accounts and tax returns
3. Interest Rates and Associated Costs
Non-Residents: Indicative rates generally range between 5% and 7% per year, depending on borrower profile, bank, and down payment.
Rates are usually based on EIBOR (local benchmark) + bank margin. Non-residents or borrowers with less robust profiles may face higher rates than residents or nationals.
Recommendation: Regularly check bank rates and compare multiple offers before committing.
Maximum Loan Term / Age Limit:
- Maximum term: up to 25 years for non-residents
- Maximum age at loan maturity: 65 for most non-residents, or 70 for self-employed borrowers, depending on the bank
Other Costs to Consider:
- Application and processing fees
- Property valuation
- Land Department registration fees
- Mortgage or life insurance
4. Step-by-Step Financing Process
Budget Planning & Lender Research: Compare rates, LTVs, and terms. Bank simulators can estimate monthly payments.
Document Preparation:
- Passport and visa (if applicable)
- Emirates ID (for residents)
- Salary certificates or proof of income
- 6–12 months of bank statements
Non-residents: foreign income, bank statements, international credit report
Pre-Approval Request: The bank evaluates the financial profile and issues a letter indicating maximum loan amount and permitted LTV.
Property Valuation & Formal Approval: Bank appraisal, title verification, and compliance with freehold regulations for foreigners.
Loan Agreement & Legal Formalities: Payment of the down payment, mortgage registration, and associated fees.
Disbursement & Repayments Begin: Funds released upon handover for completed properties or in stages for off-plan units.
5. Practical Document Checklist
- Passport + visa (if applicable)
- Emirates ID (residents)
- Salary certificate + 3–6 latest pay slips
- 6–12 months of bank statements
- For self-employed / entrepreneurs: business license, audited accounts, tax returns
- Reservation contract / MoU (for off-plan properties)
- Credit report (AECB for residents, international report for non-residents)
- Proof of foreign income for non-residents.
6. Loan Types and Selection Criteria
Loan Type | Advantages | Considerations |
Fixed Rate | Stable monthly payments | Slightly higher cost, fixed term limited |
Variable Rate | Potential savings if rates fall | Risk if rates rise (EIBOR + margin) |
Hybrid | Fixed then variable | Mix of benefits and risks |
Sharia-compliant (Islamic) | Available to non-residents, e.g., Diminishing Musharaka | Requires monitoring for share buyback structure |
Choosing a loan: depends on holding period, risk profile, and cash flow.
7. Best Practices for a Competitive Mortgage
- Compare multiple banks: rates, LTV, fees, and conditions
- Obtain pre-approval to secure the property quickly
- Prepare a complete file: financial documents, income proof, credit reports
- Evaluate all costs: bank fees, valuation, registration, insurance, penalties
- Stress-test your budget: simulate a 1–2% interest rate increase on monthly payments
- Choose the loan type that suits your profile and investment horizon.
8. Mini-Checklist Before Signing
- Verify the interest rate, loan type, and term
- Know early repayment fees and overpayment conditions
- Identify all initial and recurring costs (valuation, processing, registration)
- Simulate impact of a 1–2% interest rate increase
- Confirm mortgage insurance obligations and costs.
Conclusion
In 2025, property financing in the UAE remains accessible to nationals, residents, and certain non-residents, provided banking criteria are met. Successful financing depends on down payment, financial profile, property type, and associated costs. Pre-approval and comparing offers are key to securing funding and optimizing total mortgage cost.
For further guidance, contact Valorisimo to be supported in acquiring your property in the UAE and gain access to banking networks suited to your mortgage needs.