Buying with a Mortgage in Dubai: Residents vs Non-Residents
Most buyers of ready property in Dubai use a mortgage, and both UAE residents and buyers living abroad can get one. The rules differ in a few important ways, and knowing them early saves time and surprises.
How much can you borrow?
The UAE Central Bank sets maximum loan-to-value limits. For a resident expatriate buying a first home worth up to AED 5 million, banks can usually lend up to 80% of the price; above AED 5 million the limit is typically 70%, and lower again for second homes. UAE nationals can borrow somewhat more.
Non-residents can also get a Dubai mortgage, usually for 50% to 60% of the price, depending on the bank, their country of residence and their income. Fewer banks lend to non-residents, and they ask for more documents.
What banks look at
- Income and debts: total monthly debt repayments, including the new mortgage, must normally stay within half of your income.
- Age: the loan usually has to end by around 65 for salaried borrowers and a little later for the self-employed. The maximum term is 25 years.
- Documents: salary certificate or company accounts, bank statements, passport and, for residents, the Emirates ID.
- The property: the bank values it itself, and lends on the lower of the price and its valuation.
The costs on top of the deposit
- Mortgage registration with the Land Department: 0.25% of the loan plus a small admin fee.
- Bank arrangement fee: often up to 1% of the loan, sometimes waived.
- Valuation fee: typically a few thousand dirhams.
- Insurance: life cover for the borrower and usually property insurance.
Together with the 4% transfer fee and agency fees, plan for total cash of roughly 25% to 30% of the price as a resident, and more as a non-resident.
Mortgages and off-plan
Off-plan purchases are mostly paid through the developer's payment plan rather than a bank loan. Many buyers pay the construction instalments from savings and take a mortgage for the balance due at handover. If that is your plan, check early that you will qualify at that time.
Common reasons for delays
Most mortgage delays come from paperwork rather than refusals: missing salary transfers, recent job changes, self-employed income without audited accounts, or a valuation below the agreed price. Prepare your documents before you start viewing, and if your income has changed recently, talk to a bank or adviser early so there are no surprises close to the transfer date.
Our advice
- Get a pre-approval before you make offers. It shows sellers you are serious and tells you your real budget.
- Compare several banks. Rates, fees and early-repayment terms differ more than most people expect.
- Fix or vary? Fixed rates give certainty for the first years; variable rates follow the market. Choose what lets you sleep at night.
Try your numbers in our mortgage calculator, and our ready properties page shows the cash needed with a mortgage for every home. Exact limits and fees vary by bank and change over time, so we always confirm them for your case.