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Buying property in Dubai doesn't require paying cash upfront. UAE residents can finance up to 80% of a property's value through mortgage — and with interest rates becoming increasingly competitive, more buyers are leveraging finance to maximise their property portfolio.
This guide covers everything you need to know about getting a mortgage in the UAE in 2026.
UAE Mortgage Basics
Who Can Get a Mortgage?
UAE nationals:
- Finance up to 85% of property value (first property)
- Finance up to 70% for second property
- Minimum property value: Varies by bank
Expatriate residents:
- Finance up to 80% of property value (first property under AED 5M)
- Finance up to 65-70% for properties above AED 5M
- Finance up to 60% for second/investment property
- Must have valid UAE residence visa
Non-residents:
- Finance up to 50-60% of property value
- Limited bank options
- Higher interest rates typically apply
- Minimum property value usually AED 1M+
Loan-to-Value (LTV) Ratios
The Central Bank of UAE sets maximum LTV ratios:
| Buyer Type | First Property ≤AED 5M | First Property >AED 5M | Second Property |
|---|---|---|---|
| UAE National | 85% | 80% | 70% |
| Expat Resident | 80% | 70% | 60% |
| Non-Resident | 50-60% | 50% | 50% |
What LTV means in practice:
- 80% LTV on a AED 2M property = AED 400,000 down payment
- 70% LTV on a AED 5M property = AED 1,500,000 down payment
- Plus closing costs (approximately 7-8% of property value)
Types of Mortgages Available
1. Fixed Rate Mortgage
- Interest rate locked for 1-5 years
- Rate typically ranges: 3.99% - 5.49% (2026)
- Provides payment certainty
- May have higher initial rate than variable
- Reverts to variable after fixed period ends
2. Variable Rate Mortgage
- Rate fluctuates with EIBOR (Emirates Interbank Offered Rate)
- Typically: EIBOR + 1.5% to 3.0% margin
- Current effective rates: 4.5% - 6.5%
- Lower initial payments but unpredictable
- Best when rates are expected to fall
3. Islamic/Sharia-Compliant Financing
- Ijara — Bank buys property, leases it to you, ownership transfers at end
- Murabaha — Bank buys property, sells to you at agreed markup
- Diminishing Musharaka — Shared ownership, you buy out the bank's share gradually
- Growing market in UAE (40%+ of all new mortgages)
- Rates comparable to conventional mortgages
4. Offset Mortgage
- Savings account linked to mortgage
- Savings balance reduces the amount you pay interest on
- Example: AED 1.5M mortgage, AED 200K savings = pay interest on AED 1.3M only
- Available from select banks (HSBC, Emirates NBD)
Top UAE Banks for Mortgages (2026)
| Bank | Best Fixed Rate | Max LTV | Max Tenure | Notable Feature |
|---|---|---|---|---|
| Emirates NBD | 3.99% | 80% | 25 years | Largest market share |
| ADCB | 4.19% | 80% | 25 years | Fast processing |
| Mashreq | 4.25% | 80% | 25 years | Pre-approval in 48hrs |
| FAB | 4.09% | 80% | 25 years | Competitive rates |
| HSBC | 4.29% | 80% | 25 years | Offset mortgage option |
| RAK Bank | 4.39% | 80% | 25 years | Flexible prepayment |
| DIB (Islamic) | 4.49% | 80% | 25 years | Leading Islamic finance |
| ADIB (Islamic) | 4.39% | 80% | 25 years | No early settlement fee |
Rates as of early 2026. Rates change frequently — always verify directly with banks.
Monthly Payment Calculator
Use this table to estimate monthly payments at different rates:
AED 1,000,000 Loan
| Rate | 15 Years | 20 Years | 25 Years |
|---|---|---|---|
| 4.0% | AED 7,397 | AED 6,060 | AED 5,278 |
| 4.5% | AED 7,650 | AED 6,326 | AED 5,558 |
| 5.0% | AED 7,908 | AED 6,600 | AED 5,846 |
| 5.5% | AED 8,171 | AED 6,879 | AED 6,141 |
| 6.0% | AED 8,439 | AED 7,164 | AED 6,443 |
AED 2,000,000 Loan
| Rate | 15 Years | 20 Years | 25 Years |
|---|---|---|---|
| 4.0% | AED 14,794 | AED 12,120 | AED 10,556 |
| 4.5% | AED 15,300 | AED 12,652 | AED 11,116 |
| 5.0% | AED 15,816 | AED 13,200 | AED 11,692 |
| 5.5% | AED 16,342 | AED 13,758 | AED 12,282 |
| 6.0% | AED 16,878 | AED 14,328 | AED 12,886 |
Eligibility Requirements
Documentation Needed
Salaried employees:
- Valid passport and UAE visa
- Emirates ID
- Salary certificate from employer
- Last 6 months bank statements
- Last 3 months payslips
- Credit card statements (if any)
- Proof of existing debts (if any)
Self-employed / Business owners:
- Valid trade license
- Company bank statements (12 months)
- Audited financials (2 years)
- Personal bank statements (6 months)
- Tax returns or accountant's letter
- Memorandum of Association
Income Requirements
- Minimum salary: AED 15,000/month (most banks)
- Some banks accept: AED 10,000/month for specific products
- DBR (Debt Burden Ratio): Total monthly debt repayments must not exceed 50% of gross income
- Stress testing: Banks calculate affordability at higher rates to ensure you can handle increases
Credit Score
UAE has a credit bureau (AECB — Al Etihad Credit Bureau):
- Score range: 300 - 900
- Minimum for mortgage: Typically 620+
- Best rates available at: 720+
- Check your score at aecb.gov.ae before applying
- Late payments on credit cards, loans, or utilities negatively impact your score
Total Cost of Buying with a Mortgage
Beyond the property price, budget for these costs:
| Cost Item | Amount | Paid To |
|---|---|---|
| Down payment | 20-40% of property value | Developer/Seller |
| DLD Transfer Fee | 4% of property value | Dubai Land Department |
| Agency Commission | 2% of property value | Real estate agent |
| Mortgage Registration | 0.25% of loan amount | DLD |
| Mortgage Processing Fee | 1% of loan amount | Bank |
| Property Valuation | AED 2,500 - 3,500 | Bank-appointed valuer |
| Life Insurance | 0.4-0.7% of loan per year | Insurance provider |
| Property Insurance | AED 1,000 - 3,000 per year | Insurance provider |
| Trustee Office Fee | AED 4,200 | Trustee office |
| NOC Fee | AED 500 - 5,000 | Developer |
Example: Buying a AED 2,000,000 property with 80% LTV
| Item | Cost |
|---|---|
| Down payment (20%) | AED 400,000 |
| DLD fee (4%) | AED 80,000 |
| Agency (2%) | AED 40,000 |
| Mortgage registration | AED 4,000 |
| Processing fee (1%) | AED 16,000 |
| Valuation | AED 3,000 |
| Insurance (year 1) | AED 10,000 |
| Trustee + NOC | AED 7,000 |
| Total upfront | AED 560,000 |
That's approximately 28% of the property value needed upfront.
Step-by-Step Mortgage Process
Step 1: Get Pre-Approved (1-3 days)
- Approach 2-3 banks or use a mortgage broker
- Submit basic documents
- Receive conditional approval with maximum loan amount
- Pre-approval valid for 60-90 days
Step 2: Find Your Property
- Search within your approved budget
- Remember to factor in all purchase costs
- Get the property valued by the bank's approved valuer
Step 3: Make an Offer / Sign MOU
- Agree terms with seller/developer
- Sign Memorandum of Understanding (MOU)
- Pay deposit (typically 10%)
Step 4: Final Mortgage Approval (1-2 weeks)
- Submit all documentation to chosen bank
- Bank conducts property valuation
- Bank issues final offer letter
- Review terms carefully before signing
Step 5: Manager's Cheque & Transfer
- Bank issues manager's cheque for seller
- All parties meet at DLD trustee office
- Title deed transferred to your name
- Mortgage registered against property
Total timeline: 4-8 weeks from pre-approval to keys
Tips for Getting the Best Mortgage Deal
- Compare at least 3 banks — Rates vary significantly, even for similar profiles
- Use a mortgage broker — Free for buyers (banks pay their commission), and they negotiate better rates
- Lock in fixed rates — In a rising rate environment, 3-5 year fixed provides certainty
- Negotiate the processing fee — Banks will often reduce or waive this for strong applicants
- Check early settlement fees — Some banks charge up to 3% if you pay off early; others charge 1% or nothing
- Avoid maxing out your budget — Just because you're approved for AED 2M doesn't mean you should borrow AED 2M
- Clear credit card debts first — Every AED 1,000 in monthly debt reduces your borrowing capacity by approximately AED 200,000
- Time your application — Apply when your bank statements look strongest (stable salary, no unusual outflows)
Mortgage Refinancing
Already have a mortgage? Refinancing can save significant money.
When to refinance:
- Current rate is 1%+ higher than market
- Fixed period has ended and you're on variable
- Property has appreciated (lower LTV = better rates)
- You want to release equity
Refinancing costs:
- Early settlement fee: 1-3% of outstanding balance
- New mortgage registration: 0.25% of new loan
- New valuation: AED 2,500 - 3,500
- Processing fee: 0.5-1% of new loan
Rule of thumb: Refinancing makes sense if savings exceed costs within 2 years.
Common Mortgage Mistakes
- ❌ Not getting pre-approved first — You might fall in love with a property you can't afford
- ❌ Ignoring the DBR rule — If your total debts exceed 50% of income, no bank will lend
- ❌ Forgetting service charges — Monthly costs beyond the mortgage (AED 1,000-4,000/month)
- ❌ Choosing the lowest rate without reading terms — A 3.89% rate with 3% early settlement is worse than 4.09% with 1% penalty
- ❌ Not budgeting for rate increases — Variable rates can increase 2-3% over your tenure
Related Articles
- How to Buy Property in Dubai as a Foreigner: Step-by-Step Guide
- Off-Plan vs Ready Property in Dubai: Which Is the Smarter Investment?
- Understanding Dubai Service Charges: What Every Owner Needs to Know
- Property Snagging Guide Dubai: What to Check Before Handover
Need Mortgage Guidance?
Mister Seven works with Dubai's top mortgage brokers to find the best rates for your situation. We handle the entire financing journey — from pre-approval to completion.