UAE Mortgages 2026 – Complete Expat Guide To Home Loans And Financing

How Home Loans Work For Expats, Residents And Non-Residents

Mortgages in the UAE operate differently from many Western markets. Interest rates, down payment rules, and eligibility thresholds vary based on:

Residency status
Property value
Type of property
Emirate
Personal income profile

Banks in the UAE are generally conservative lenders. They focus on:

Verifiable income
Employer or business stability
Existing debts
Age and nationality bands
Property valuation risk

At the same time, the UAE mortgage market is highly competitive, with dozens of local and international banks offering:

Fixed and variable rates
Islamic and conventional mortgages
Buy-to-let and end-user loans
Non-resident lending options

This guide explains everything you need before you apply — from eligibility and rates to hidden fees and approval timelines.

Common questions about mortages in the UAE

Can expats get mortgages in the UAE?

Yes. Both residents and non-residents can obtain mortgages subject to eligibility criteria.

What down payment is required?

Typically 20%–25% for residents and 35%–50% for non-residents, depending on price band and property type.

Are mortgage rates fixed or variable?

Both options exist. Fixed terms are usually 1–5 years, then convert to variable pegged to EIBOR.

Can I get a mortgage without living in the UAE?

Yes. Several banks lend to non-residents at lower loan-to-value ratios and with stricter documentation.

Can I mortgage off-plan property?

Yes, but subject to developer and project approval and usually at lower LTV until completion.

Is Islamic finance available?

Yes. Islamic mortgages in the UAE are commonly structured as Ijarah or Murabaha arrangements.

Who can get a mortgage in the UAE?

Eligibility depends primarily on whether you are:

A UAE resident with Emirates ID
A non-resident foreign buyer

Residents (Emirates ID holders)

Residents generally enjoy:

Higher loan-to-value ratios
Wider bank choice
Lower interest rates
More flexible documentation

Non-residents

Non-residents can still access mortgages but typically face:

Lower maximum LTV
Higher income thresholds
Fewer banks willing to lend
Higher rates and fees

Loan-to-value (LTV) rules and down payment requirements

The UAE Central Bank sets broad guidelines.

Typical LTV for residents

Property Type	Value Band	Maximum LTV	Minimum Down Payment
First Property	≤ AED 5m	Up to 80%	20%
First Property	> AED 5m	Up to 70%	30%
Second Property Or Investment	Any value	Up to 60–65%	35–40%

Typical LTV for non-residents

Property	Maximum LTV	Minimum Down Payment
Any property	50–60%	40–50%

Banks will also require:

Fees payable in cash (not from the loan amount)
Proof that down payment funds are legitimate

How banks assess affordability

Banks use parameters called DBR (Debt Burden Ratio) or TDSR (Total Debt Service Ratio).

Typical rule:

Total debt repayments must not exceed approximately 50% of your monthly income

Debt obligations include:

Personal loans
Credit cards (often assumed at a percentage of limit, not balance)
Existing mortgages globally
Car loans

Income considered may include:

Employment salary
Allowances (housing, transport, etc.)
Business profits for self-employed
Rental income in selective cases

Mortgage types in the UAE

Fixed-rate mortgages

Rates are fixed for a period such as:

1 year
2 years
3 years
5 years

After the fixed period, the loan typically reverts to a variable rate.

Suitable for:

Budget certainty
Risk-averse borrowers

Variable-rate mortgages

Variable rates are usually pegged to:

EIBOR (Emirates Interbank Offered Rate)
Bank margin on top

Payments can increase or decrease over time.

Suitable for:

Borrowers comfortable with rate fluctuation
Investors expecting falling rates

Hybrid structures

Some banks offer:

Fixed for first years
Then variable margin afterward

These combine payment stability early on with later market pricing.

Islamic vs conventional mortgages

The UAE offers one of the world’s most developed Islamic finance markets.

Islamic mortgage models often include:

Ijarah – Bank buys the property and leases it to you
Murabaha – Bank purchases then resells to you at agreed profit

Key characteristics:

No explicit interest rate reference in contract wording
Profit rate structure economically similar to interest
Shariah board certification

Off-plan property and mortgages

Mortgages for off-plan property differ significantly from ready property.

Banks consider:

Developer reputation
Escrow protection
Construction progress
Handover timeline

Typical structure:

Buyer pays instalments during construction
Mortgage starts close to completion

Risk warning:

if project delivery is delayed
your financing costs and plans may be affected

Ready vs off-plan — mortgage comparison table

Factor	Ready Property Mortgage	Off-Plan Property Mortgage
Availability	Wide	Limited
LTV	Higher	Lower initially
Start Of Repayments	Immediate	Near completion
Risk Profile	Lower	Developer/project risk
Rental Income	Immediate	After completion

The complete step-by-step UAE mortgage process

Step 1 — Define property and financing strategy

Decide:

Investor vs end-user
Residency visa linkage
Budget and affordability
Emirate and community

Step 2 — Obtain mortgage pre-approval

This is highly recommended before property selection.

Benefits:

Shows real purchasing budget
Strengthens negotiation position
Prevents commitment to property you cannot finance

Step 3 — Property valuation

Bank valuation confirms:

Market value
Risk and resale potential
Legal status

If valuation is lower than purchase price, you must cover the difference in cash.

Step 4 — Final loan offer

Bank issues:

Sanction letter
Final approved loan amount
Rate and repayment schedule

Step 5 — Transfer and registration

At transfer:

Buyer, seller, bank and trustee attend
Loan funds are released
Title deed issued or updated

Repayments commence thereafter.

Interest rates in the UAE mortgage market

Rates depend on:

Bank
Borrower profile
LTV
Fixed-rate period
Market EIBOR level

Borrowers should focus on:

Full cost after teaser rate expires
Reversion rate
Margin above EIBOR

Fees and hidden costs of UAE mortgages

Borrowers pay several structured fees.

Typical mortgage-related fees include:

Bank arrangement fee
Property valuation fee
Life insurance (mandatory at most banks)
Property insurance
Mortgage registration fee
Early settlement charge

Example summary table

Fee Type	Typical Range
Bank Arrangement Fee	0.5–1% of loan
Valuation Fee	AED 2,500–4,000
Mortgage Registration	Approx. 0.25% of loan
Life Insurance	0.4–0.8% annually
Early Settlement	Up to 1% capped

Early repayment, refinancing and rate switching

Borrowers can:

Partially settle early
Fully repay early
Refinance to another bank
Switch from variable to fixed and vice versa

Early settlement charges normally apply but may still be financially beneficial when:

Rates fall
Reversion margin is high
Loan balance is still large

Refinancing may:

Lower your monthly payments
Shorten loan term
Reduce total interest paid

Non-resident investor mortgage considerations

Non-resident borrowers face:

Higher minimum income thresholds
More conservative LTVs
Fewer banks willing to lend
Higher rates

Banks often require:

International credit report
Source of income proof
Higher liquidity reserves

Non-resident lending is particularly common for:

Dubai investment properties
Premium developments
Completed property

Mortgage terms and repayment lengths

Typical mortgage terms:

5–25 years
Sometimes up to 30 years

Constraints include:

Maximum age at loan maturity (often 65–70 years)
Employment type and nationality

Longer terms reduce monthly payments but increase total interest cost.

Example affordability – income vs property price

Illustrative scenario:

Monthly income: AED 35,000
No major existing debts
Approximate allowable repayment: ~50% of income = AED 17,500
Mortgage term: 25 years

This borrower may qualify for property value around:

AED 1.5m–2.5m depending on rate, LTV and bank policy

Actual qualification varies by bank and time.

Mortgages and UAE residency visas

Property ownership and financing intersect with visas in multiple ways:

Mortgaged property can still support Property Investor Visa eligibility if value test met
Higher-value portfolios can contribute toward Golden Visa paths
Banks require valid residency for resident-rate loans

Internal linking suggestions:

Property Investor Visa guide
Golden Visa Guide
Buying Property Guide

Risks to be aware of before taking a mortgage

Borrowers should understand:

Interest rate fluctuation
Employment risk
Currency conversion risk if income not in AED
Market value volatility
Maintenance and service charges

Important: Do not over-leverage based on optimistic rental yield assumptions alone.

Common mistakes mortgage applicants make

Starting property search without pre-approval
Ignoring reversion rate after fixed period
Overestimating bank valuation
Not budgeting life and property insurance costs
Forgetting transfer fees and legal charges
Assuming non-resident LTVs equal resident LTVs
Believing broker advertisements without checking fine print

Avoiding these mistakes can save tens of thousands of dirhams over the life of a loan.

How PlanUAE helps mortgage applicants

We assist clients by:

Assessing eligibility before bank applications
Comparing resident vs non-resident options
Modelling repayments and cash-flow impact
Explaining bank choice trade-offs
Introducing vetted mortgage advisers and lenders
Coordinating mortgage with overall financial plan

We are not a bank and do not sell mortgage products. Our role is independent guidance.

Call to action

Secure the right mortgage in the UAE with clarity and confidence

✓ Independent guidance on banks and products
✓ Full affordability and cash-flow modelling
✓ Resident and non-resident options explained
✓ Integrated property and visa planning

→ Check your eligibility in the Expat Planning Portal
→ Request mortgage guidance from our team