Borrowing
How much can I borrow for a mortgage in Dubai?
The two rules that set your maximum mortgage in the UAE, loan-to-value limits and the 50% debt-burden ratio, with a worked salary example.
Key takeaways
- Your maximum is the lower of two limits: the property’s loan-to-value cap and what your income supports.
- Total monthly debt repayments usually can’t exceed 50% of your income.
- Existing loans and credit card limits reduce what you can borrow.
Two limits decide your maximum
UAE banks look at two separate limits, and the lower one wins. The first depends on the property: how much of its value the bank may lend. The second depends on you: how much your income can comfortably repay.
Limit 1: loan-to-value
UAE Central Bank rules cap the loan as a share of the property’s value. Typical limits:
| Buyer | Maximum loan |
|---|---|
| Resident, first home up to AED 5 million | 80% |
| Resident, first home above AED 5 million | 70% |
| UAE national, first home up to AED 5 million | 85% |
| UAE national, first home above AED 5 million | 75% |
| Second or further property (residents) | 60% |
| Off-plan, during construction | 50% |
| Non-residents | Typically 50–65% |
Limit 2: the 50% debt-burden ratio
Your total monthly debt repayments, including the new mortgage, generally can’t exceed 50% of your monthly income. Banks count car loans, personal loans and credit cards. Many count around 5% of your total credit card limit as a monthly commitment, even if you clear the balance each month.
Worked example
Sara earns AED 25,000 a month, pays AED 2,000 a month on a car loan and has credit cards with a combined limit of AED 20,000.
- 50% of income: AED 12,500 a month.
- Minus the car loan (AED 2,000) and credit cards (about AED 1,000): AED 9,500 left for the mortgage.
- At 4.25% over 25 years, AED 9,500 a month repays a loan of about AED 1.75 million.
If the home she wants costs AED 2 million, the loan-to-value cap of 80% allows AED 1.6 million, which is lower than her income limit. So the property limit wins, and she needs a AED 400,000 deposit plus costs.
How to borrow more
- Pay off or close small loans and unused credit cards before applying.
- Choose a longer term, up to 25 years, to lower the monthly payment.
- Make sure all your income is documented, including allowances and bonuses where banks accept them.
Try your own numbers in the mortgage calculator, or see how self-employed income is assessed.
Figures are typical for UAE mortgages and are for general information only. Your offer depends on your profile and the lending bank.
