What a UAE mortgage calculator does
A mortgage is a loan from a bank that you use to buy a home. The home itself is the security. You pay the bank back every month, with interest, for an agreed number of years. If you stop paying, the bank can take the property.
Before you visit a bank or sign a sales agreement, you should know three numbers. The first is your monthly payment. The second is how much the loan costs you in total. The third is the cash you must have ready before the keys are yours. Many first-time buyers only think about the down payment and are surprised when fees add another 6% to 8% of the price. This tool shows all three numbers at once.
The calculator also applies the loan-to-value (LTV) rules set by the Central Bank of the UAE (CBUAE). These rules decide the most a bank can lend you against a home. If the down payment you enter is too small, the calculator tells you so and shows the minimum you need.
Who can get a mortgage in the UAE
Banks in the UAE lend to three main groups:
- UAE nationals. They get the highest loan-to-value limits. Some also qualify for government housing programmes, which work differently from a normal bank loan.
- Expat residents. Foreign workers and business owners with a UAE residence visa. They can buy freehold property in areas where foreign ownership is allowed, such as many parts of Dubai.
- Non-residents. Some banks lend to buyers who live abroad. They usually ask for a larger deposit and more paperwork.
Each bank has its own minimum salary, often somewhere around AED 15,000 to AED 25,000 a month for an expat, but this varies a lot. Banks also look at your employer, how long you have worked in the UAE, your credit report from Al Etihad Credit Bureau and your existing debts. If you have a car loan or personal loan, those payments count against you. You can see how they add up with our UAE Personal Loan Calculator and UAE Car Loan Calculator.
Central Bank rules: LTV, term and borrowing limits
The main rules come from the CBUAE Regulations Regarding Mortgage Loans, first issued as Circular No. 31/2013. They have been amended several times since. The current version, as published in the CBUAE Rulebook, sets these limits for banks and finance companies:
- Loan-to-value caps. The loan cannot be more than a set share of the property value. The share depends on whether you are a UAE national or an expat, whether this is your first home, the property value, and whether the home is ready or off-plan. The full table is below.
- First home rule. You can only use the higher first-home limit for one property.
- Maximum term of 25 years. No mortgage can run longer than 25 years. That is why our calculator stops at 25.
- Age at final payment. The old fixed limits of 65 for expats and 70 for nationals were removed in 2019. Each lender now sets its own maximum age. In practice, many banks still use similar ages.
- Debt burden ratio. All your monthly loan payments together are generally capped at 50% of your gross monthly income.
- Income multiple. Total mortgage lending is capped at 7 times annual income for expats and 8 times for UAE nationals.
- Stress test. Banks must check that you could still pay if the rate rose by 2 to 4 percentage points.
- Repayment basis. Normal home loans are repaid on a reducing balance. Only investment loans may have an interest-only period, and for no more than 5 years.
The LTV caps for a first home were raised by 5 percentage points in April 2020, as part of the CBUAE support package during the pandemic. That change is still in force today. Older articles that say an expat can only borrow 75% are out of date.
These are maximum limits. A bank is free to lend you less. Some banks also tighten their own rules from time to time. For example, in 2026 one Dubai bank briefly lowered its own limits and then went back to the standard ones. Always read your own bank’s offer.
Maximum loan-to-value and minimum down payment
This table shows the CBUAE caps. Our calculator uses exactly these figures. “Value” means the price or the bank’s valuation, whichever is lower.
| Buyer and property | Max loan (LTV) | Minimum down payment |
|---|---|---|
| Expat, first home, value up to AED 5 million | 80% | 20% |
| Expat, first home, value above AED 5 million | 70% | 30% |
| Expat, second home or investment | 60% | 40% |
| UAE national, first home, value up to AED 5 million | 85% | 15% |
| UAE national, first home, value above AED 5 million | 75% | 25% |
| UAE national, second home or investment | 65% | 35% |
| Any buyer, off-plan property | 50% | 50% |
The down payment is a percentage of the property value. The fees in the next section are paid on top of it.
How the monthly payment is calculated
UAE banks use the standard reducing-balance formula, the same one used for most loans in the world. Each month you pay a fixed amount. At the start, most of that payment is interest. Near the end, most of it reduces the loan.
Step 1: Find the loan amount
Step 2: Check the loan-to-value
LTV must be ≤ the cap for your buyer type
Step 3: Work out the monthly payment
n = Years × 12
Monthly payment = Loan × r ÷ (1 − (1 + r)−n)
If the rate is zero, the payment is simply the loan divided by the number of months.
Step 4: Total interest and total payable
Total interest = Total payable − Loan
Step 5: Upfront cash
The calculator assumes one interest rate for the whole term. Real UAE mortgages usually have a fixed rate for a few years and then a variable rate. Treat the result as a planning figure, not a promise.
Upfront costs when you buy a home in Dubai
The fee boxes in the calculator start with typical Dubai figures. Each box can be changed. Here is what each one means.
| Cost | Default in calculator | Who sets it |
|---|---|---|
| DLD transfer fee | 4% of price | Dubai Land Department. Officially 2% buyer and 2% seller, but buyers often pay all 4%. |
| Title deed, map, knowledge and innovation fees | AED 520 (250 + 250 + 10 + 10) | Dubai Land Department |
| Trustee office (service partner) fee | AED 4,000 + 5% VAT from AED 500,000; AED 2,000 + VAT below | Dubai Land Department fee schedule |
| Mortgage registration | 0.25% of loan + AED 290 | DLD charges 0.25% of the mortgage value; the admin part varies |
| Bank arrangement fee | 1% of loan + VAT | Your bank. Often up to 1%; some banks offer lower or zero. |
| Valuation fee | AED 3,000 + VAT | Your bank’s valuer. Usually about AED 2,500 to 3,500. |
| Agent commission | 2% of price + VAT | The broker. Negotiable; often nil when buying direct from a developer. |
The calculator adds 5% VAT to the trustee fee, the bank fee, the valuation and the agent commission, because VAT is charged on these services. Government fees from the Land Department do not carry VAT. To check VAT on any amount, use our UAE VAT Calculator.
For a full list of Dubai transfer costs, including off-plan Oqood fees and who pays what, see the Dubai Property Transfer Fee Calculator.
Some costs are not in the calculator because they depend on the property: developer NOC fees on resale (often paid by the seller), conveyancing or lawyer fees, DEWA deposits, moving costs and furniture. Banks also require life insurance on the borrower and property insurance, which are paid monthly or yearly.
Worked examples
Each example uses the default fees in the calculator. Type the same numbers above and you will get the same results.
Example 1: Expat buying a first apartment for AED 1.5 million
Anil is an Indian expat who lives in Dubai. He wants to buy a ready two-bedroom flat for AED 1,500,000. He will live in it. He puts down 20%, which is AED 300,000. His bank quotes 4.5% for 25 years.
- Maximum LTV for an expat first home up to AED 5 million: 80%. Minimum down payment: AED 300,000. His LTV is exactly 80%, so he passes.
- Loan: AED 1,200,000.
- Monthly payment: AED 6,669.99.
- Total interest over 25 years: AED 800,996.92. Total of all payments: AED 2,000,996.92.
- In year one he pays AED 53,456.16 of interest and only AED 26,583.72 off the loan.
His upfront costs are DLD transfer AED 60,000, DLD deed and admin AED 520, trustee fee AED 4,200, mortgage registration AED 3,290, bank fee AED 12,600, valuation AED 3,150 and agent AED 31,500. That is AED 115,260 in fees. With the deposit, he needs AED 415,260 in cash.
If Anil chose 20 years instead, his payment would rise to AED 7,591.79 a month, but total interest would fall to AED 622,030.20. That is a saving of about AED 179,000.
Example 2: UAE national buying a villa above AED 5 million
Fatima is an Emirati buying her first family villa for AED 6,000,000. She leaves the down payment box blank, so the calculator uses the minimum. Her rate is 4.25% for 20 years.
- Maximum LTV for a UAE national first home above AED 5 million: 75%. Minimum down payment: AED 1,500,000.
- Loan: AED 4,500,000.
- Monthly payment: AED 27,865.55.
- Total interest: AED 2,187,732.27.
- Upfront fees: AED 432,660. Cash needed with the deposit: AED 1,932,660.
Fatima’s bank will also check that AED 27,865.55 plus any other debts is within 50% of her income, and that the loan is not more than 8 times her annual income.
Example 3: Expat buying a second, investment flat
Joseph already owns his home. He wants a studio worth AED 900,000 to rent out. He plans to put down AED 270,000 (30%).
- The calculator shows his LTV as 70%, which is above the 60% cap for an expat’s second property. It warns him that the minimum down payment is AED 360,000.
- With AED 360,000 down, the loan is AED 540,000. At 4.75% over 15 years, the payment is AED 4,200.29 a month.
- Total interest: AED 216,052.62.
- Fees: AED 70,080. Cash needed: AED 430,080.
Example 4: Off-plan purchase
Rania wants to finance an off-plan flat priced at AED 2,000,000. Any buyer can borrow only 50% on off-plan property, so she needs at least AED 1,000,000 of her own money. On a AED 1,000,000 loan at 4.5% for 25 years, the payment would be AED 5,558.32. In practice, most off-plan buyers pay the developer’s instalments in cash during construction and only take a mortgage near handover. The fee section of the calculator is built for a ready property transfer, so use our transfer fee calculator for off-plan costs.
Special cases
Fixed and variable rates
Most UAE home loans start with a fixed rate for 1, 3 or 5 years. After that, the rate becomes variable, usually set as a margin over the three-month EIBOR. When EIBOR rises, your payment rises. When you test your budget, try the calculator at 1% or 2% above your quoted rate. The Central Bank asks banks to do the same.
Islamic home finance
Islamic banks offer home finance using structures such as Ijara (lease to own) or Murabaha. There is no interest in the legal sense. Instead you pay rent or profit. The monthly cost is usually worked out the same way, with a profit rate in place of an interest rate, so the calculator still gives a useful estimate. The LTV caps apply to Islamic finance too.
Properties exactly at AED 5 million
The CBUAE wording gives the higher first-home cap to properties up to AED 5 million. Our calculator treats AED 5,000,000 as inside the lower band. A property of AED 5,000,001 moves to the lower LTV.
Buying with a partner
Joint applicants can combine their incomes, which helps with the debt burden ratio. The LTV still depends on the property and on whether it is a first home for the borrowers.
Early repayment
If you sell or pay off the loan early, the Central Bank caps the early settlement fee at 1% of the outstanding balance or AED 10,000, whichever is less. The same cap applies to partial payments.
Other emirates
The LTV and payment rules are federal. Registration fees are local. Abu Dhabi, Sharjah and the northern emirates each have their own land department fees. Change the fee boxes if you are buying outside Dubai.
Common mistakes when planning a UAE mortgage
- Saving only for the deposit. On a ready Dubai home, fees can add 6% to 8% of the price. Example 1 shows AED 115,260 of fees on a AED 1.5 million flat.
- Using old LTV figures. Expat first-time buyers can borrow up to 80%, not 75%, on homes up to AED 5 million.
- Assuming the bank lends the price. The LTV is applied to the lower of the price and the bank’s valuation. If the valuer says the flat is worth less, you must cover the gap.
- Ignoring the rate after the fixed period. A low teaser rate can jump after year three.
- Forgetting other debts. Credit card limits and car loans count toward the 50% debt burden ratio.
- Choosing the longest term without thinking. A 25-year loan has the lowest payment but the highest total interest.
- Missing VAT. Agent, bank, valuation and trustee fees carry 5% VAT.
Practical tips for buyers
- Get a pre-approval letter before you make an offer. It tells you how much the bank will lend and holds the rate for a short period.
- Compare at least three banks or use a licensed mortgage broker. Look at the rate, the fixed period, the follow-on margin and all fees.
- Ask whether the bank will waive or reduce the arrangement fee. Fees are often negotiable.
- Keep a buffer of a few months of payments after you buy.
- Check your credit score with Al Etihad Credit Bureau before you apply.
- Compare buying with renting. Our Dubai Rent Increase Calculator shows how much your rent can legally rise.
- If you plan to use your end of service money as part of the deposit, estimate it with a gratuity calculator first. Banks will not count gratuity as income for repayments, though.
Where to get official help
The Central Bank of the UAE regulates banks and publishes the mortgage rules in its online Rulebook. If you have a complaint about a bank that it does not solve, you can take it to Sanadak, the UAE’s independent financial ombudsman for banking and insurance. For property registration and fees in Dubai, contact the Dubai Land Department through its website, the Dubai REST app or a registered trustee office. For legal advice on a purchase contract, speak to a licensed UAE lawyer.
Frequently asked questions
What is the minimum down payment for an expat in the UAE?
For a first home worth AED 5 million or less, the Central Bank allows up to 80% loan-to-value, so the minimum down payment is 20%. Above AED 5 million it is 30%. For a second or investment home it is 40%, and for off-plan property it is 50%. Fees are paid on top.
What is the minimum down payment for UAE nationals?
UAE nationals can borrow up to 85% for a first home worth AED 5 million or less (15% down), 75% above AED 5 million (25% down), 65% for a second home (35% down) and 50% for off-plan property.
What is the maximum mortgage term in the UAE?
25 years. The Central Bank mortgage regulations set this as the longest tenor. Banks may give you a shorter term if the loan would run past their age limit.
Is there an age limit for a mortgage in the UAE?
The Central Bank no longer fixes one age for everyone. Since a 2019 amendment, each lender sets its own maximum age at final repayment. Many banks use about 65 for expats and 70 for UAE nationals, but check with your bank.
How much can I borrow on my salary?
All your monthly debt payments together, including the new mortgage, generally cannot be more than 50% of your monthly income. The rules also cap total borrowing at 7 times annual income for expats and 8 times for UAE nationals. Banks also stress-test the payment at a higher rate.
Can I add the purchase fees to my mortgage?
Usually you should plan to pay them in cash. The loan-to-value cap is measured against the property value, so the bank cannot normally lend you more than the cap allows. A few banks have offered to finance some fees within the limits, so ask your lender.
What is the early settlement fee on a UAE mortgage?
The Central Bank caps it at 1% of the outstanding balance or AED 10,000, whichever is lower. The same cap applies to partial settlement.
Is the monthly payment fixed for the whole term?
Not usually. Most UAE home loans have a fixed rate for 1 to 5 years and then move to a variable rate linked to EIBOR plus a margin. Your payment can rise or fall after the fixed period ends.
Do non-residents get the same loan-to-value limits?
The Central Bank caps are maximums. Banks set their own policies within them, and many lend less to non-residents, often 50% to 60%. Check the offer from your bank.
Does this calculator work outside Dubai?
The loan-to-value rules and payment maths apply across the UAE. The upfront cost defaults are based on Dubai Land Department fees. Abu Dhabi, Sharjah and other emirates charge different registration fees, so change the fee boxes to match.
Disclaimer
This calculator and guide give estimates for general information only. They are not financial or legal advice and are not a loan offer. Banks set their own rates, fees and lending rules within the Central Bank limits, and fees can change. Confirm all figures with your bank, the Dubai Land Department or a licensed adviser before you commit.
Sources and references
Central Bank of the UAE, Regulations Regarding Mortgage Loans (Circular No. 31/2013) as amended by Board Resolution No. 31/2/2020 and Decision No. 96/2019: CBUAE Rulebook – Mortgage Loans and 2020 LTV amendment; CBUAE capped fees for home loans: CBUAE Rulebook – fee schedule; Dubai Land Department service fees: Property sale registration and Mortgage registration.