Many expatriates who buy property in Dubai pay part of the price with a bank loan. Banks in the UAE are not free to lend as they like: the Central Bank of the UAE has set specific caps on the loan-to-value ratio, the loan amount, the instalment and the term. This article is based on Article 3 of the "Regulations Regarding Mortgage Loans" in the Central Bank of the UAE rulebook and the "Mortgage registration application" service page of the Dubai Land Department, checked on 25 October 2026.
Loan-to-value ratio
The Central Bank rulebook gives the maximum loan-to-value (LTV) ratio for expatriates as follows:
| Type of property | Maximum loan as a share of value |
|---|---|
| First home, owner-occupied, value less than AED 5 million | 80% |
| First home, owner-occupied, value more than AED 5 million | 70% |
| Second and subsequent home or investment property | 60%, regardless of value |
| Off-plan property, all categories | 50%, regardless of purpose, value or category of buyer |
The same article says each borrower can claim only one property in the "first home" category. This means the rest of the money, at least 20 to 50% depending on the property type, must come from the buyer's own funds.
Comparison with UAE nationals
The same article sets higher caps for UAE nationals; seeing them side by side shows where the expatriate caps stand:
| Subject | Expatriates | UAE nationals |
|---|---|---|
| First home up to AED 5 million | 80% | 85% |
| First home above AED 5 million | 70% | 75% |
| Second and subsequent home | 60% | 65% |
| Off-plan property | 50% | 50% |
| Maximum loan relative to annual income | 7 times | 8 times |
Caps on amount, instalment and term
| Subject | Central Bank rule |
|---|---|
| Maximum loan amount for expatriates | 7 times annual income |
| Debt burden ratio (DBR) | At most 50% of gross salary and regular income from a defined source |
| Stress test | The bank tests the instalment at 2 to 4 percentage points above the current rate |
| Investment property | The bank deducts at least two months' rent for empty months from the calculation |
| Maximum term | 25 years |
| Age at the end of the loan | Set by the bank under its risk policy |
| Repayment after retirement | The remaining instalments must be serviceable at 50% of post-retirement income |
| Source of repayment | Salary or verifiable business or rental income; the end-of-service benefit is not accepted |
| Repayment frequency | At least once every three months |
| Collateral | A first-degree mortgage on the property in the lender's name |
The same article says loans with deferred principal repayment are only for investment loans, and this period must not exceed 5 years from the first drawdown.
Mortgage registration in Dubai
Once the loan is approved, the mortgage is registered with the Dubai Land Department in the bank's favour. The "Mortgage registration application" service page gives these:
| Line | What the Land Department says |
|---|---|
| Ordinary mortgage registration fee | 0.25% of the mortgage amount |
| Title deed issuance | AED 250 |
| Knowledge and Innovation | AED 10 + 10 |
| Service partner fee | AED 4,000 plus value added tax |
| Service partner fee for initial (off-plan) sales | AED 5,000 plus value added tax |
| Documents for an individual | A letter from the lending bank, three bank-certified mortgage contracts signed by both parties, an Emirates ID (or a passport for a non-resident foreigner); for off-plan, the developer's no-objection certificate |
| Time | 20 to 25 minutes |
| Channel | The Land Department's online mortgage system and real estate registration trustee offices |
Two examples
These examples are hypothetical and only apply the official caps and fees above. Ask each bank for its interest rate and instalment.
**Example 1: a first apartment of AED 2 million.** An expatriate employee with an annual salary of AED 360,000 buys their first home.
| Line | Calculation | Amount |
|---|---|---|
| Cap based on value | 80% × 2,000,000 | AED 1,600,000 |
| Cap based on income | 7 × 360,000 | AED 2,520,000 |
| Maximum loan (the lower of the two caps) | — | AED 1,600,000 |
| Buyer's own money | 2,000,000 − 1,600,000 | AED 400,000 |
| Mortgage registration fee | 0.25% × 1,600,000 | AED 4,000 |
| Title deed issuance and Knowledge and Innovation | 250 + 20 | AED 270 |
The monthly instalment must also not exceed 50% of monthly income, that is AED 15,000, and this cap includes all their other loans. The service partner fee, the property transfer costs and the bank's fees are separate.
**Example 2: a second home to rent out.** The same employee later buys a second apartment worth AED 1 million to rent out. The loan cap for a second home is 60%, that is AED 600,000, and AED 400,000 must come from their own money. When assessing ability to repay, the bank deducts at least two months' rent for empty months from the rental income, and the instalments on both loans together must still stay below 50% of income.
Practical points
- Before searching for property, get a bank "pre-approval" to know your real cap.
- Plan the down payment and registration costs separately; the loan does not cover them.
- If the property is off-plan, take the 50% cap into account; see the article "Buying off-plan property in Dubai".
- The end-of-service benefit is not an accepted source of repayment; rely on regular income.
- If you are considering residence through property, also weigh the conditions for a mortgaged property; the article "Buying property in Dubai as a foreigner" gives the conditions of the property investor residence.
Royal Golden does not give financial, legal or real estate advice. This article is general information; the decision on any loan rests with the lending bank and on any registration with the Dubai Land Department.
Sources
- Central Bank of the UAE, Rulebook, Regulations Regarding Mortgage Loans, Article 3: Important Ratios — https://rulebook.centralbank.ae/en/rulebook/article-3-important-ratios (checked on 25 October 2026)
- Dubai Land Department, Mortgage registration application — https://dubailand.gov.ae/en/eservices/request-for-mortgage-registration/ (checked on 25 October 2026)