Example: AED 1.8 million apartment
An expat first-time buyer puts 20% down on a ready AED 1,800,000 apartment, 25-year mortgage at 4.25%.
- Loan = AED 1,440,000; down payment = AED 360,000
- Monthly payment ≈ AED 7,801
- Fees ≈ AED 136,740 (DLD 4% AED 72,000; agency 2% + VAT AED 37,800; bank fee 1% + VAT AED 15,120; trustee, mortgage registration, valuation and admin)
- Total cash needed ≈ AED 496,740 – about 27.6% of the price
UAE loan-to-value limits
| Buyer | First home ≤ AED 5m | First home > AED 5m | Second home | Off-plan |
|---|---|---|---|---|
| Expat | 80% | 70% | 60% | 50% |
| UAE national | 85% | 75% | 65% | 50% |
How the monthly payment is calculated
UAE mortgages use the standard reducing-balance formula: payment = L × r × (1 + r)n ÷ ((1 + r)n − 1), where L is the loan, r the monthly rate (annual rate ÷ 12) and n the number of months. Early payments are mostly interest; the principal share grows over time.
Tips before you apply
- Get a pre-approval first – it shows the amount a bank will lend and usually lasts 60–90 days.
- Compare offers through several banks or a mortgage broker; bank fees and reversion margins differ widely.
- Keep 3–5% of the price aside for fees, moving costs and furnishing.
- Check early-settlement fees: UAE rules cap them at 1% of the outstanding amount (max AED 10,000).
- Life and property insurance are required by most lenders and add to the monthly cost.
See all purchase fees in detail with the Dubai property fees calculator, or decide whether to buy at all with rent vs buy.
Rates and fees are typical market figures and change frequently. Your bank’s offer letter is the final word.
Frequently asked questions
What is the minimum down payment for a mortgage in the UAE?
For a ready home up to AED 5 million, expats need at least 20% and UAE nationals 15%. Above AED 5 million it is 30% for expats and 25% for nationals. Second and investment homes need 40% (expats) or 35% (nationals), and off-plan properties 50%.
What is the maximum mortgage term in the UAE?
25 years. Banks also limit the term so the loan ends by retirement age – typically 65 for salaried expats and 70 for UAE nationals or self-employed applicants, depending on the bank.
How much can I borrow on my salary?
UAE Central Bank rules cap total monthly debt repayments (mortgage plus all other loans and card minimums) at 50% of your gross monthly income. Banks also stress-test against higher rates, so practical limits are often lower.
Fixed or variable rate?
Fixed rates (typically 1–5 years) give certainty, then revert to a variable rate linked to EIBOR plus a margin. Variable rates move with EIBOR from day one. Compare the reversion margin and early-settlement fees, not only the headline rate.
Can mortgage fees be added to the loan?
Generally no. The DLD fee, agency commission and most bank fees must be paid in cash on top of the down payment, which is why the “cash needed upfront” figure matters.
Last reviewed: October 2026