Three rules set the ceiling on what a UAE bank will lend you: the loan-to-value (LTV) cap, the debt-burden ratio (DBR) and the maximum term. Understanding each one before you view properties saves a lot of disappointment later.
1. Loan-to-value caps
The UAE Central Bank limits how much of a property's value can be financed:
| Buyer | First home ≤ AED 5M | First home > AED 5M | Additional homes |
|---|---|---|---|
| Expat resident | 80% | 70% | 60% |
| UAE national | 85% | 75% | 65% |
| Off-plan (all) | 50% | 50% | 50% |
Non-residents are assessed by each bank individually and are commonly offered 50–60%.
2. The 50% debt-burden ratio
Your total monthly debt repayments — the new mortgage plus car loans, personal loans and 5% of every credit card limit — cannot exceed 50% of your monthly income. Closing unused credit cards before you apply is one of the easiest ways to increase what you can borrow.
3. Term and age
The maximum term is 25 years, and most banks require the loan to end by 65 (salaried) or 70 (self-employed). A 45-year-old salaried buyer may therefore be limited to a 20-year term, which raises the monthly repayment and lowers the maximum loan.
Putting it together
Your maximum mortgage is the lower of what the LTV cap allows on the property and what the DBR allows on your income. Our affordability calculator estimates both — and an adviser can confirm the figure against current bank policies.
Figures are indicative and subject to lender policy and approval.
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