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Mortgage Guide for Expats Buying in Dubai

Down payments, rates and approvals explained simply.

Splendid HomesProperty advisors
Published
Updated
Mortgage Guide for Expats Buying in Dubai

In short

Expats can usually borrow up to 80% of the value of a first home under AED 5 million, so they need a 20% deposit, and up to 70% above that. Loans run for up to 25 years, and monthly debt repayments must stay within half of your income.

Expats typically need a 20% down payment for a first property under AED 5 million, with loan terms up to 25 years. Getting a mortgage in Dubai is straightforward if you prepare your documents and know the limits before you start viewing.

How much you can borrow

UAE Central Bank rules set the maximum loan-to-value for expat buyers. For a first home under AED 5 million, you can borrow up to 80% of the value. Above AED 5 million it drops to 70%, and for a second or investment property it is lower again. Off-plan property has its own, lower limits.

Your income sets the other limit. Total monthly debt repayments, including car loans and credit cards, cannot exceed half of your monthly income.

The costs on top of your deposit

  • The 4% Dubai Land Department transfer fee
  • Mortgage registration fee, a percentage of the loan plus an admin fee
  • Bank arrangement fee, often up to 1% of the loan
  • Property valuation fee
  • Trustee office and agency fees

As a rule of thumb, plan for 6% to 7% of the price in costs, on top of your deposit.

Fixed or variable?

Most Dubai mortgages offer a fixed rate for the first one to five years, then switch to a variable rate linked to EIBOR, the interbank rate. A fixed rate gives certainty; a variable rate can be lower but will move with the market. Check the early settlement fee, which is capped by regulation, in case you sell or refinance.

Documents you will need

  • Passport, residence visa and Emirates ID
  • Salary certificate or employment contract
  • Six months of bank statements
  • For self-employed buyers, trade licence and audited accounts
  • Details of any existing loans and credit cards

Non-residents can also get mortgages from some banks, usually with a larger deposit and extra documents.

Pre-approval first

Get pre-approval before you make an offer. It tells you exactly how much the bank will lend, makes your offer stronger, and avoids losing a deposit if financing falls through. Pre-approval is usually valid for around 60 days.

Tips for a smooth approval

Keep your credit card balances low, avoid taking new loans while you apply, and compare offers from several banks or use a mortgage broker. Our team works with leading UAE banks and can introduce you to a broker who will compare rates for you.

Key takeaways

  • Expats can borrow up to 80% on a first home under AED 5 million, and 70% above that.
  • Monthly debt repayments must stay within half of your income.
  • Budget 6% to 7% of the price for fees on top of the deposit, and get pre-approval before you offer.

Step by step

  1. 1

    Pre-approval. A bank or broker checks your income and debts and issues a pre-approval, usually valid for 60 to 90 days.

  2. 2

    Offer and valuation. Once your offer is accepted, the bank values the property; the loan is based on the lower of price and valuation.

  3. 3

    Final offer. The bank issues the final offer letter and you sign the mortgage documents.

  4. 4

    Transfer. The sale and the mortgage are registered together at a DLD trustee office on transfer day.

Maximum loan-to-value for expat buyers

Central Bank of the UAE maximum loan-to-value limits for expatriate buyers
PropertyMax. loanMinimum deposit
First home, value up to AED 5M80%20%
First home, value above AED 5M70%30%
Second and further homes60%40%
Off-plan property50%50%

Sources

  1. Central Bank of the UAE: mortgage regulations
  2. Dubai Land Department (DLD)

Rules and fees change; this article reflects them as of . Check the official source before acting.

Frequently asked questions

How much deposit do expats need to buy in Dubai?

At least 20% for a first home worth up to AED 5 million, and 30% above that. Budget a further 6 to 7% for fees.

What is the maximum mortgage term in the UAE?

25 years. Most banks also require the loan to end by around age 65 for salaried borrowers.

How much can I borrow on my salary?

Your total monthly debt repayments, including the new mortgage, must stay within 50% of your monthly income under Central Bank rules.

What fees come with a mortgage in Dubai?

The DLD mortgage registration fee of 0.25% of the loan plus an admin fee, the bank’s arrangement fee (capped at 1% of the loan), and a valuation fee, on top of the 4% transfer fee on the purchase.

Can I get a mortgage on an off-plan property?

Yes, but the maximum is 50% of the value, so you need to fund at least half yourself.

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