UAE Mortgage Guide 2026: LTV Limits, Rates, Costs and How to Apply
- Published 11 Nov 2025
- Updated 10 November 2026
- 12 min read
- Data verified on 10 Nov 2026
In short
To get a mortgage in the UAE in 2026, expatriates can borrow up to 80% of a first home below AED 5 million (UAE nationals 85%), 60% on a second or investment property and 50% on off-plan. Total debt payments cannot exceed 50% of income, the term is capped at 25 years, and the Central Bank Base Rate stands at 3.90% since 17 September 2026, with fixed deals from about 3.75%. Budget extra cash for fees: 4% registration in Dubai, about 2% in Abu Dhabi.
CBUAE mortgage regulations, consolidated 8 Apr 2020 Ā· CBUAE Base Rate, SepāOct 2026 Ā· Khaleej Times, Jul and Nov 2026 Ā· DLD, DARI and Bayut fee schedules, 2026
80%max LTV
Expatriate first home below AED 5 million; 60% for second homes, 50% off-plan
Source: CBUAE mortgage regulations, 2020 version
3.90%Base Rate
Central Bank of the UAE rate since 17 September 2026, held on 28 October
Source: CBUAE, Oct 2026
50%of income
Maximum debt burden ratio, with a stress test 2 to 4 points above the loan rate
Source: CBUAE mortgage regulations
One federal rulebook sets mortgage limits in every emirate; banks can only be stricter.Photo: Ā© VALORISIMO
In this article Ā· 9 sections
What are the UAE mortgage rules in 2026?
Every home loan in the UAE, whether it is signed in Dubai, Abu Dhabi or another emirate, follows one federal rulebook: the Central Bank of the UAE’s Regulations Regarding Mortgage Loans. Banks can be stricter than these rules, never looser.
The regulation (Circular 31/2013) took effect in late 2013 and was amended in 2019 and 2020; the consolidated version dated 8 April 2020 is the one in force in November 2026. It separates two types of borrower, UAE nationals and expatriates, and two types of use, the first home you live in and every other property (a second home or a property bought to rent out). Off-plan homes have their own cap for everyone.
Loan-to-value (LTV) limits by buyer type
The LTV is the share of the bank’s valuation that can be financed. The rest is your down payment, and it must come from your own money: the Central Bank explicitly bans funding it with a personal loan or a credit card.
| Borrower and property | Property value | Maximum LTV | Minimum down payment |
|---|---|---|---|
| UAE national, first home | AED 5 million or less | 85% | 15% |
| UAE national, first home | Above AED 5 million | 75% | 25% |
| UAE national, second home or investment | Any value | 65% | 35% |
| Expatriate, first home | Below AED 5 million | 80% | 20% |
| Expatriate, first home | Above AED 5 million | 70% | 30% |
| Expatriate, second home or investment | Any value | 60% | 40% |
| Any buyer, off-plan property | Any value | 50% | 50% |
Source: Central Bank of the UAE, Regulations Regarding Mortgage Loans (Circular 31/2013), consolidated version of 8 April 2020, in force November 2026. Down payment = 100% minus LTV, before fees.
Two details are often missed. First, each borrower can claim only one property as a first home; the next one is automatically treated as a second home at 60% (expatriates) or 65% (nationals). Second, the LTV applies to the bank’s valuation, not the agreed price. If the valuer comes in below the price, the loan shrinks and the gap is paid in cash. How these limits evolved since 2013, and what changed for expats, is explained in our page on UAE mortgage rules eased for expats.
How much can you borrow for a mortgage in the UAE?
Three tests decide the size of your loan: the LTV cap, your debt burden ratio and an income multiple. The smallest result wins.
| Rule | Limit set by the Central Bank |
|---|---|
| Debt burden ratio (DBR) | 50% of gross salary and regular income, all debts included |
| Stress test | Repayment tested at 2 to 4 percentage points above the loan rate |
| Maximum loan size | 8 years’ income (UAE nationals), 7 years’ income (expatriates) |
| Maximum tenor | 25 years |
| Age at last repayment | Set by each lender’s policy |
| Interest-only period | Investment loans only, 5 years maximum |
| Down payment | From your own funds, not personal loans or credit cards |
| Early settlement fee | 1% of the outstanding balance or AED 10,000, whichever is less |
Source: CBUAE Rulebook, Regulations Regarding Mortgage Loans (consolidated 8 April 2020) and Regulation 29/2011, Appendix 2 fee caps (excluding VAT), read 10 Nov 2026.
The debt burden ratio and the stress test
All your monthly debt payments, including car loans, personal loans and credit card limits, plus the new mortgage, cannot exceed 50% of your gross monthly income. Banks must not simply apply the maximum, and they must stress test the loan at 2 to 4 percentage points above its current rate. In practice, a loan that looks affordable at today’s fixed rate has to remain affordable at a much higher one.
The income multiple
On top of the DBR, total mortgage financing cannot exceed 7 years of annual income for an expatriate or 8 years for a UAE national. A worked example: to borrow AED 1.2 million, an expatriate needs at least AED 171,429 of annual income (1,200,000 Ć· 7), or about AED 14,286 a month.
Tenor and age
The maximum term is 25 years. The current regulation leaves the maximum age at the last repayment to each lender’s policy, so the term you are offered may be shorter if you are close to retirement. When a loan runs past retirement age, the bank must check that the balance can still be repaid at a 50% DBR of your retirement income.
- Investment property: the bank deducts at least two months' rent from the income it counts, to cover vacant periods.
- Bonuses and commissions: non-guaranteed income is discounted or excluded from the calculation.
- End-of-service gratuity: it cannot be used to repay the mortgage.
- Repayments: at least quarterly, on a reducing-balance basis.
What are mortgage interest rates in the UAE in 2026?
UAE mortgage rates follow the Central Bank’s Base Rate, which moves with US policy because the dirham is pegged to the dollar. In 2026 the direction turned upwards.
The Central Bank of the UAE kept its Base Rate at 3.65% for most of the year, then raised it by 25 basis points to 3.90% from 17 September 2026, and held it there on 28 October 2026. Variable mortgages are priced on the Emirates Interbank Offered Rate (EIBOR) plus a bank margin, so they react to these moves.
Fixed rates were still competitive mid-year. Khaleej Times reported in July 2026 that major banks offered one-year fixed rates from about 3.75%, two-year deals at about 3.78% and three-year deals at about 3.95%. In November 2026, after the hike, it quoted introductory fixed rates from about 3.75% and three-year packages at about 3.89% to 4%, depending on the borrower.
| Interest rate | Monthly repayment | What it represents |
|---|---|---|
| 3.75% | AED 6,170 | Introductory 1-year fixed rates quoted from about 3.75% |
| 3.95% | AED 6,301 | 3-year fixed rates quoted at about 3.95% (July 2026) |
| 4.74% | AED 6,835 | Indicative 3-month EIBOR + 1% margin, Q2 2026 |
| 5.95% | AED 7,695 | Bank stress test at +2 points on a 3.95% loan |
| 7.95% | AED 9,222 | Bank stress test at +4 points on a 3.95% loan |
Illustrative calculation by Valorisimo: AED 1.2 million loan over 25 years, standard annuity formula. Rate references: Khaleej Times, 12 Jul 2026 and 2 Nov 2026; stress range: CBUAE mortgage regulations.
Fixed or variable?
A fixed rate locks your repayment for an initial period, typically one to five years, after which the loan usually switches to EIBOR plus a margin. It protects you against further rises like the one in September 2026. A variable rate can start lower or fall faster if rates ease, but every reset changes your payment. If your budget is tight, the stress test figures above are the honest way to decide: could you still pay at 6% or 8%?
Who can get a mortgage in the UAE?
Residents, UAE nationals and many non-residents can borrow, but lenders scrutinise each profile differently.
Salaried residents
A salaried resident with an established employer is in the strongest position, according to mortgage advisers quoted by Khaleej Times in July 2026. Expect to provide your passport, residence visa, Emirates ID, salary certificate, payslips and six to twelve months of bank statements. Banks may also pull your report from the Al Etihad Credit Bureau.
Self-employed buyers
Self-employed applicants need stronger evidence of stable income: trade licence, audited statements, VAT returns and proof of sustained operations. Presenting yourself as salaried when you are not is a common cause of rejection. Buyers working in cyclical sectors such as aviation, hospitality, real estate or oil and gas may be offered lower limits and asked for larger deposits.
Non-residents
The Central Bank rules do not create a separate non-resident category: a foreign buyer living abroad falls under the expatriate caps. Lenders, however, often apply lower LTVs, higher income thresholds and more documentation. Our mortgage guide for non-residents investing in the UAE covers this case in detail.
How do you get a mortgage in the UAE, step by step?
The process is similar in every emirate. Getting pre-approved before you sign anything is the single most useful step.
1. Set your budget
Work backwards from the three tests above, then add purchase costs on top of the down payment. Mortgage advisers quoted by Khaleej Times in July 2026 suggested having 25% to 30% of the property value in cash for a first home, to cover the deposit and fees.
2. Get a pre-approval
The bank checks your income, liabilities and credit history and tells you how much it is willing to lend. A pre-approval is not a final offer, but it shows sellers you are a serious buyer.
3. Choose the property and sign
Sign the memorandum of understanding (or the developer’s sale contract for a new home) with a condition linked to financing if you can negotiate it.
4. Valuation and final offer
The bank orders an independent on-site valuation. The Central Bank requires the valuer to be independent of the buyer, seller and developer, and the valuation must not include expected future price growth. The final offer letter is based on that value.
5. Registration and transfer
The sale and the mortgage are registered together, with the Dubai Land Department in Dubai or through the DARI platform in Abu Dhabi. The bank pays the seller and becomes the first-ranking mortgagee on your title deed.
How much does a mortgage cost in Dubai and Abu Dhabi?
The largest extra cost is not linked to the loan at all: it is the property registration fee, which is about twice as high in Dubai as in Abu Dhabi.
| Cost item | Dubai | Abu Dhabi |
|---|---|---|
| Property registration | 4% of the price (2% buyer + 2% seller on the DLD schedule) | About 2% of the price, usually split between buyer and seller |
| Mortgage registration | 0.25% of the loan + AED 250 title deed + AED 20 | About 0.1% |
| Registration trustee / partner fee | AED 4,000 + VAT (AED 2,000 + VAT below AED 500,000) | Not applicable in the same form |
| Title deed | AED 250 | AED 1,000 |
| Bank valuation | Set by the bank | AED 2,500 to 3,000 + VAT |
| Agency commission | Agreed with the broker | About 2% + VAT |
| Off-plan sale registration | 4% (2% + 2%) via Oqood | 2% of the price; AED 10,000 penalty after 21 days |
Sources: Dubai Land Department service pages (property sale registration, mortgage registration), read 10 Nov 2026; DARI/ADREC help centre (off-plan sale registration); Bayut, updated 19 Oct 2026.
A worked example in Dubai
Take an illustrative AED 1.5 million first home bought by an expatriate with an 80% loan of AED 1.2 million. If the buyer pays the full 4% registration, that is AED 60,000. Mortgage registration adds AED 3,000 (0.25% of the loan) plus AED 270 of title deed and system fees, and the trustee charges AED 4,000 plus VAT. With the AED 300,000 down payment, the cash needed before agency and bank fees is about AED 367,470, or 24.5% of the price. Our guide to mortgages in Dubai itemises every DLD fee, including release and refinancing.
Bank fees and insurance
Banks add a processing or arrangement fee and charge for the valuation. Life insurance linked to the loan is normally required, and many lenders also ask for property insurance. The Central Bank requires fees to be listed in a separate schedule attached to the loan contract and the total cost of the loan to be disclosed, so ask for that schedule and compare it between banks.
What fees can a UAE bank charge on a mortgage, and can you refinance?
The Central Bank caps several mortgage fees, which makes switching banks or repaying early cheaper than in many countries.
Under Regulation 29/2011, an early settlement or a partial settlement of a home loan costs at most 1% of the outstanding balance or AED 10,000, whichever is less, plus VAT. Late payment fees are capped at AED 700, a no-objection certificate at AED 150 and a liability letter at AED 85. Fixed-rate loans can also carry the actual cost to the lender of breaking the fixed rate. The rules add that there should be no impediment to refinancing with another bank, and that a lender cannot change your loan’s terms during its life without your written agreement; fee changes must be notified two months in advance.
When refinancing makes sense
Refinancing is worth a look when your fixed period ends and the loan rolls onto a higher variable rate, or when another bank offers a lower margin. In Dubai, moving a mortgage to a new bank is registered as a mortgage transfer with the Land Department, which charges 0.25% of the mortgage value plus fees, so compare those costs with the interest you would save.
Two mortgages on one property?
The Central Bank requires a first-ranking mortgage in favour of the lender on every financed property, so a second loan from another bank on the same home is generally not possible. Top-ups are arranged with the existing lender, within the LTV and DBR limits.
What mistakes should you avoid when applying for a UAE mortgage?
Most rejections and bad surprises come from the same few errors.
- Signing before pre-approval: you risk losing your deposit if the bank lends less than you assumed.
- Forgetting the valuation gap: the LTV applies to the bank's value, not your price.
- Counting only the deposit: in Dubai, registration alone adds 4% of the price.
- Ignoring card limits: unused credit card limits can count towards your 50% DBR.
- Choosing the longest term by default: 25 years lowers the payment but raises total interest.
- Not planning for the end of the fixed period: check the margin over EIBOR that will apply afterwards.
Watch out
Rates, LTV offers and bank fees change frequently and differ by profile. The Central Bank limits are maximums: your bank can lend less. Ask each lender for a written offer with the full fee schedule before you commit to a property.
Frequently asked questions
How much deposit do I need for a mortgage in the UAE?
An expatriate needs at least 20% of the bank’s valuation for a first home below AED 5 million, 30% above that, 40% for a second or investment property and 50% off-plan. UAE nationals need 15%, 25% and 35%. Registration and bank fees come on top, so plan for more cash than the deposit.
What is the maximum mortgage term in the UAE?
The Central Bank caps mortgages at 25 years. The age at the final repayment is now set by each bank’s policy, so older borrowers may be offered a shorter term, and loans running past retirement must remain affordable on retirement income.
How much salary do I need for a UAE mortgage?
There is no single legal minimum. The rules require your total debt payments to stay below 50% of income and cap the loan at 7 years of income for expatriates. A AED 1.2 million loan therefore needs at least about AED 14,286 a month, and banks set their own minimum salaries on top.
Are UAE mortgage rates going up in 2026?
The Central Bank raised its Base Rate from 3.65% to 3.90% on 17 September 2026 and held it on 28 October. Variable loans linked to EIBOR follow such moves; fixed deals were still quoted from about 3.75% to 4% in November 2026, according to Khaleej Times.
Can I use a personal loan for the down payment?
No. The Central Bank regulation states that the down payment must come from the borrower’s own resources and not from other borrowing, including personal loans and credit cards. Banks check the source of the funds before releasing the mortgage.
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.
Planning to buy with a mortgage in the UAE?
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Off-plan
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