How to Get a Mortgage in Dubai: Down Payment, Eligibility & Steps

How much down payment do you need for a Dubai property? The UAE Central Bank's Regulations Regarding Mortgage Loans set the maximum LTV, which gives the minimum down payment:

Expats (non-UAE nationals)

• First home up to AED 5 million: max 80% LTV, minimum 20% down
• First home above AED 5 million: max 70% LTV, minimum 30% down
• Second or subsequent property: max 60% LTV, minimum 40% down

UAE nationals

• First home up to AED 5 million: max 85% LTV, minimum 15% down
• First home above AED 5 million: max 75% LTV, minimum 25% down
• Second or subsequent property: max 65% LTV, minimum 35% down

Off-plan property (all buyers): max 50% LTV, so at least 50% down.

These are the highest LTVs the regulations allow, not an approval. A lender can apply a lower LTV based on your profile and the property. The Central Bank also states that the down payment should come from your own resources, not from other borrowing such as personal loans or credit cards.

On top of the down payment, budget for the applicable DLD registration charges, mortgage registration (DLD charges 0.25% of the mortgage value), the bank's valuation and arrangement fees, and any agency fee.

Lenders assess whether you can afford the repayments. The Central Bank rules that apply to every lender include:

• Debt burden ratio: total monthly debt repayments, including the new mortgage, cannot exceed 50% of your income. Lenders must also stress-test the loan at a higher interest rate.
• Maximum loan size: up to 7 times annual income for expats and 8 times for UAE nationals.
• Maximum term: 25 years.

Each lender sets its own minimum income, maximum age at the end of the loan and document requirements, so these vary between banks. Non-residents can also apply, but each lender decides whether it lends to non-residents and on what terms. UK buyers can read our guide to home loans in Dubai for UK nationals.

Compare offers from several banks or use a mortgage adviser. Look beyond the headline rate at:

• fixed-rate periods against variable rates
• arrangement, valuation and early-settlement fees
• the total cost over the life of the loan, which lenders must disclose

If you are weighing bank finance against a developer instalment plan on an off-plan purchase, our comparison of 1% payment plans vs mortgages explains the difference. Use our Dubai mortgage calculator to compare monthly repayments.

A pre-approval letter from your chosen bank confirms, in principle, how much it is willing to lend based on your income and documents. It sets your budget before you make an offer. Pre-approval is not a final loan offer, and the letter is valid only for a limited period set by the lender, so plan your property search around it.

With pre-approval in hand, you can browse properties for sale in Dubai within your budget. If you are a first-time buyer of a home under AED 5 million, check whether you qualify for the DLD First-Time Home Buyer programme. Once you agree on a price, you sign the sale and purchase agreement with the seller.

Before the bank commits to lend, an independent valuer must inspect and value the property. The loan is based on the appraised value, so a lower valuation can mean a larger cash contribution. Once the valuation and your documents are approved, the bank issues its final offer, which sets out the loan amount, rate, term, fees and repayment schedule.