Dubai Mortgage Calculator: Estimate Your Monthly Payments and Upfront Costs

Complete Guide to Mortgages in Dubai and the UAE

Buying in Dubai or anywhere in the UAE? This guide explains how mortgages work here, who can qualify, common costs and fees, and the pros and cons of using finance. Use the calculator above to estimate payments, then speak to our advisors to compare live bank offers and get pre‑approved.

What is a mortgage?

A mortgage is a loan secured against a property that you repay over time, typically up to 25 years in the UAE. Your monthly installment covers the amount you borrowed plus the lender’s charges. In the UAE, loans are offered by local and international banks and can be conventional or Sharia‑compliant (Islamic finance).

Why buyers in Dubai use mortgages

Mortgages let you buy sooner by spreading the cost over time, preserve cash for renovations or investments, help build equity as you repay, and can improve returns for investors by using sensible leverage in a high‑demand rental market. They also create payment discipline and provide documentation that sellers and developers view positively in negotiations.

Key drawbacks and risks to weigh

Mortgages add financing costs over the life of the loan. Variable loans priced off EIBOR can change your monthly payments when rates move. Some loans charge fees for early settlement or partial prepayment during fixed periods. Your affordability is stress‑tested, so other debts reduce how much you can borrow. For expats, there can be currency exposure if your income and mortgage are in different currencies, and property service charges are separate from the mortgage and need to be budgeted.

The rules that matter in the UAE

The Central Bank sets guardrails lenders follow across the country. These include maximum loan‑to‑value (LTV) limits, a debt‑burden ratio (DBR) cap, maximum loan term, and income‑based caps.

For UAE nationals, first home up to AED 5m can be financed up to 85% LTV; above AED 5m up to 75% LTV; second homes or investment properties up to 65% LTV. For expatriates, first home up to AED 5m can be financed up to 80% LTV; above AED 5m up to 70% LTV; second homes or investment properties up to 60% LTV. For all buyers, off‑plan property is capped at 50% LTV. The maximum loan term is generally 25 years. Lenders must keep your total monthly debt payments under a 50% DBR and stress‑test affordability by adding 2–4 percentage points to the interest rate. There are also caps tied to income: up to 8x annual income for nationals and up to 7x for expats. These are regulatory ceilings; banks may be stricter based on your profile and the property.

Fixed, variable, and Islamic home finance

Fixed‑rate loans give a set installment for an initial period (for example 1–5 years), then usually revert to a variable rate. Variable‑rate loans are commonly linked to EIBOR (for example 1‑, 3‑, or 6‑month EIBOR) plus a bank margin, so payments can move as EIBOR changes. Islamic home finance, such as Ijara (lease‑to‑own) and Murabaha (cost‑plus sale), is structured without interest while achieving similar end outcomes. A 2025 market overview reflects these options and typical practices across the UAE Expatica 2025.

What it really costs to buy with a mortgage in Dubai

Beyond your down payment, expect government fees and bank fees at completion. Typical Dubai items include: Dubai Land Department transfer fee (commonly 4% of property value plus admin), registration trustee fee (banded by property value), mortgage registration fee (commonly 0.25% of the loan amount plus admin). Banks may charge a processing fee and require a valuation; there can also be broker fees depending on the transaction. Building insurance is generally required, and some banks require life coverage assignment. Community service charges are separate from your mortgage installment. Figures vary by property and lender; we’ll confirm your exact costs before you commit. See an example breakdown style used by local brokers here for reference MyMortgage.

Who can qualify and what lenders look at

Banks assess stable income, employment length or business track record, overall debts, credit history, age at maturity, residency status, and sometimes your employer category. Some lenders favor applicants working for government entities, banks, or large multinationals, while others are more flexible. Non‑residents can obtain mortgages to buy in designated freehold areas, typically with tighter LTVs and documentation. Timelines and exact criteria vary by bank.

Step‑by‑step: securing a mortgage in Dubai

Start with a quick eligibility check and gather documents (ID, proof of income, bank statements, liabilities). Obtain an approval in principle to validate budget before making offers. Once a property is selected, the bank orders a valuation. After final underwriting, you receive the offer letter; for off‑plan, banks disburse against construction milestones. On transfer day at the registration trustee, the bank releases funds to the seller/developer and you complete the title transfer. Using a specialist broker smooths bank selection, approvals, and timelines.

Non‑resident and off‑plan notes

Non‑residents are typically limited to designated freehold areas and may face lower LTVs and higher rates or fees than residents. For off‑plan purchases, the Central Bank caps LTV at 50% for all buyer types, with banks releasing funds in stages, and your equity used before bank disbursements. Plan cash flow for developer installments accordingly.

Refinancing and early repayments

If rates fall or your profile improves, refinancing can reduce your monthly installment or total cost. Most banks allow partial prepayments annually, often with a fee during fixed periods. We’ll compare savings versus fees and coordinate a smooth switch to your new lender when beneficial.

Smart tips to improve approval odds and terms

Get pre‑approved before viewing to strengthen offers. Keep your DBR under control by settling short‑term debts. Choose a term that balances affordability and total interest. Consider a fixed period if you value payment certainty; consider variable if you expect rates to ease and can handle volatility. If you prefer Sharia‑compliant finance, tell us and we’ll shortlist Islamic options first.

FAQs

What’s the minimum down payment in Dubai?

For expats buying a first home valued up to AED 5m, regulations cap financing at 80% LTV (so at least 20% down). Above AED 5m, the cap is 70% LTV (so at least 30% down). Nationals have higher caps at 85% and 75% respectively. Investment properties have lower caps. These are maximums; banks can be stricter.

How much of my income can go to debt?

The UAE caps the debt‑burden ratio at 50% of gross monthly income, and lenders must stress‑test your loan at a higher rate to ensure resilience.

How long can I borrow for?

The maximum term is generally 25 years in the UAE. Banks set additional criteria such as maximum age at last installment.

Do you support Islamic home finance?

Yes. We present Sharia‑compliant structures like Ijara and Murabaha alongside conventional options so you can choose what fits your needs and principles.

Can non‑residents get a mortgage?

Yes, subject to lender criteria, usually for properties in designated freehold areas and often with different LTVs and documentation.

What documents will I need?

Typically IDs, proof of income and employment or business ownership, bank statements, and details of existing liabilities. Exact lists vary by bank and profile.

Important information: All estimates and examples on this page are for guidance only. Final offers depend on lender assessment, documentation, internal policy, and credit checks as per UAE Central Bank rules.