Mortgage in Dubai for Foreigners: Rules, Rates and Costs (2026)
A mortgage in Dubai for foreigners is governed by two layers of rules: the Central Bank of the UAE sets the lending limits that every bank and finance company must respect, and the Dubai Land Department (DLD) registers the loan against the property under Dubai law. This guide reflects the position as of 5 November 2026. It sets out the loan-to-value limits for expatriates, the debt-burden and term limits, the documents banks list, the fixed and variable rate basis, the registration and bank fees, and the conditions that apply when a mortgaged property is used for a residence permit application.
Every figure below carries its source and date, and the worked examples show each step of the arithmetic with the inputs labelled as assumptions. Amounts are in dirhams with US dollars in brackets at 3.6725 per dollar, for example AED 2,000,000 ($544,588). Where a bank page is quoted, it is an example of what that bank publishes on the date stated and not a comparison or ranking of lenders. Rules, rates and fees can change, so each table gives its as-of date.
Mortgage in Dubai for Foreigners: The Short Answer
Foreign nationals can borrow against Dubai property from banks and finance companies licensed by the Central Bank of the UAE (CBUAE). Under Article 4 of Dubai Law No. (14) of 2008 Concerning Mortgage in the Emirate of Dubai, the only entities allowed to act as mortgagee are banks, or financing companies and institutions licensed and registered with the CBUAE to provide real property financing. The law contains no provision specific to non-UAE nationals, so a mortgage in Dubai for foreigners follows the same registration and enforcement rules as any other mortgage.
The CBUAE Regulations Regarding Mortgage Loans (circular C 31/2013, effective 28 December 2013, amended by Board Resolution 96/2019 and Board Resolution 31/2/2020, consolidated as of 8 April 2020) apply to banks, finance companies and other lenders that provide mortgage loans to UAE nationals, GCC nationals and expatriates. The loan-to-value table in Article 3 lists two buyer categories, UAE nationals and expatriates, plus one line for property bought off-plan. It has no separate line for non-residents. Banks publish their own ratios for applicants who live outside the UAE, and those ratios are policy choices within the regulatory ceilings. The sections below cover resident and non-resident applicants separately.
| Question | Answer on 5 November 2026 | Source |
|---|---|---|
| Who can lend | Banks and finance companies licensed and registered with the CBUAE | Law 14/2008, Art. 4 |
| Highest loan-to-value for an expatriate buying a first home below AED 5,000,000 | 80% | CBUAE rulebook, Art. 3(2) |
| Highest loan-to-value for an expatriate’s second or investment property | 60% regardless of value | CBUAE rulebook, Art. 3(2) |
| Highest loan-to-value for property bought off-plan | 50% regardless of purpose, value or buyer | CBUAE rulebook, Art. 3(2) |
| Maximum tenor | 25 years | CBUAE rulebook, Art. 3(3) |
| Debt burden ratio cap | 50% of gross salary and regular income from a defined source | CBUAE rulebook, Art. 3(1) |
| DLD mortgage registration fee | 0.25% of the mortgage value, plus fixed fees | DLD mortgage registration page |
The Legal Framework Behind a Dubai Mortgage
Four instruments matter to a borrower. The CBUAE regulation controls how much a lender may advance and on what terms. Dubai Law No. 14 of 2008 controls how the mortgage is created, ranked and enforced. Dubai Law No. 7 of 2006 controls the property register on which the mortgage is recorded. Dubai Law No. 8 of 2007 controls escrow accounts for off-plan developments, which matters where a mortgage finances an unfinished building.
| Instrument | What it governs | Points relevant to a borrower |
|---|---|---|
| CBUAE Regulations Regarding Mortgage Loans (C 31/2013) | Lending limits and risk rules for lenders | LTV ceilings, 50% debt burden cap, 25-year tenor, independent valuation, disclosure of costs |
| Dubai Law No. (14) of 2008 | Creation, ranking and enforcement of mortgages in Dubai | Registration with the DLD (Art. 7), consent to sell mortgaged property (Art. 10), void clauses (Art. 11), enforcement notice and auction (Arts. 25 to 28), early repayment (Art. 29) |
| Dubai Law No. (7) of 2006 | The real property register | Transactions creating, transferring or ending rights are valid only once recorded in the register (Art. 9) |
| Dubai Law No. (8) of 2007 | Escrow accounts for real estate development | Off-plan payments go to a project escrow account (Arts. 2 and 7); loans to a developer are paid into that account (Art. 13) |
What Dubai Law No. 14 of 2008 says
The law was issued on 14 August 2008 and, per the English text on the Dubai Legislation Portal, the Arabic original prevails if the texts differ. A mortgage takes effect only when it is registered with the DLD, and any agreement to the contrary is void (Article 7). Unless the parties agree otherwise, the mortgagor bears the registration fees. Registration also fixes the ranking between creditors (Articles 8 and 17).
Several protections for the borrower sit in the same text. A clause that transfers ownership to the lender on default, or lets the lender sell without following the legal procedure, is void (Article 11). Before foreclosure the lender must serve at least 30 days’ notice through a Notary Public (Article 25). The sale then proceeds by public auction through DLD procedures under an order from the execution judge (Articles 26 and 28), and the judge may postpone the auction once, for up to 60 days, where the debtor can repay within that period (Article 27). The debtor may repay the debt covered by the mortgage before maturity (Article 29), and if the sale proceeds fall short the lender may claim the balance (Article 30).
A mortgagor who wants to sell, donate or create other rights over mortgaged property needs the mortgagee’s approval, and the incoming party must agree to take over the obligations (Article 10). Off-plan or under-construction property can be mortgaged only if it is recorded in the Interim Real Property Register (Articles 5 and 24). The site’s guides on freehold and leasehold ownership in Dubai and which areas foreigners can buy apartments in cover the ownership side, since a lender will only take a charge over property that the borrower can lawfully own.
Loan-to-Value Limits for Expatriates
Loan-to-value (LTV) is the outstanding loan divided by the appraised value of the property. The rulebook states that these ratios are the maximum allowed, that lenders are expected to adopt more conservative ratios where risks are higher, and that nothing stops a lender from setting lower limits. The expatriate ceilings, as shown on the CBUAE rulebook page on 5 November 2026, are below, with the loan and own funds that each ceiling implies on a AED 2,000,000 ($544,588) purchase.
| Buyer and property | Maximum LTV | Minimum own funds | Loan on AED 2,000,000 ($544,588) | Own funds |
|---|---|---|---|---|
| Expatriate, first house or owner-occupier, value below AED 5,000,000 ($1,361,470) | 80% | 20% | AED 1,600,000 ($435,671) | AED 400,000 ($108,918) |
| Expatriate, first house or owner-occupier, value above AED 5,000,000 ($1,361,470) | 70% | 30% | Not applicable at this price | Not applicable at this price |
| Expatriate, second or subsequent house, or investment property | 60% regardless of value | 40% | AED 1,200,000 ($326,753) | AED 800,000 ($217,835) |
| Property bought off-plan, any buyer | 50% regardless of purpose, value or category | 50% | AED 1,000,000 ($272,294) | AED 1,000,000 ($272,294) |
| UAE national, first house, value up to AED 5,000,000 ($1,361,470) | 85% | 15% | AED 1,700,000 ($462,900) | AED 300,000 ($81,688) |
Three details in the wording are worth reading closely. First, the first-home category is limited to one property per borrower: “Each borrower can only claim one property under this category.” Second, the expatriate bands are written as “less than” and “more than” AED 5,000,000, so the text does not spell out the band for a price of exactly AED 5,000,000, and the bank’s offer states which applies. Third, the own funds must come from the borrower’s resources and not from other borrowing such as personal loans or credit cards, per Article 2(4).
Banks publish their own ceilings within these limits. Emirates NBD’s key facts statement lists up to 80% for expatriates and a 20% minimum down payment, and the Emirates Islamic home finance page lists 80% of property value for expatriates and 85% for UAE nationals, as shown on those pages on 5 November 2026. These match the regulatory ceiling; they are not a promise that any applicant receives the maximum.
Why the property valuation matters
The ratio applies to the appraised value, and the appraisal is not the same as the contract price. Article 2(5) requires an independent on-site valuation by a qualified third party who is independent of the borrower, seller, developer and the loan decision process, carried out before any irrevocable commitment to lend. The appraisal must not build in expected future price rises, and the property’s title must be free from encumbrances. If a valuation comes in below the agreed price, the loan is calculated on the lower figure, so the buyer funds the gap. For example, on a AED 2,000,000 ($544,588) contract with a valuation of AED 1,900,000 ($517,359), an 80% loan is AED 1,520,000 ($413,887) instead of AED 1,600,000 ($435,671), which leaves the buyer AED 480,000 ($130,701) to find from own resources before fees. The valuation figure in that example is an assumption chosen for the arithmetic.
Debt Burden, Term and Income Limits
The LTV ceiling is only one test. Article 3 of the rulebook adds several limits on how much a borrower can service, and the lender applies them to the income documents in the application.
| Limit | Rule in the CBUAE rulebook (Art. 3 unless stated) |
|---|---|
| Debt burden ratio (DBR) | Maximum 50% of gross salary and regular income from a defined source; total debt service including the new mortgage and credit cards counts |
| Stress test | Lenders stress the loan at 2 to 4 percentage points above the current rate; where an introductory rate applies, the test uses the rate that applies after the introductory period ends |
| Maximum financing amount | Expatriates: up to 7 years of annual income (UAE nationals: up to 8 years) |
| Maximum tenor | 25 years; the maximum age at the last repayment is set by each lender’s own risk policy |
| Source of repayment | Salary or verifiable business or rental income; end-of-service benefit may not be used |
| Repayment method | Principal and interest on a reducing balance, at a frequency not less than quarterly |
| Interest-only period | Only for investment loans, and not longer than 5 years from first drawdown |
| Rental income on investment property | Lenders deduct at least two months of rental income in the DBR calculation to allow for vacant periods |
| Collateral | First-class mortgage in the lender’s name on the financed property |
The CBUAE press release of 10 October 2019 lifted the earlier fixed 70-year cap on the borrower’s age at the last repayment, leaving the age limit to each lender’s policy. Bank pages show how that policy appears in practice: the HSBC UAE how-to-apply page lists applicants aged 21 to 65 who live in the UAE, earn at least AED 15,000 ($4,084) a month, borrow AED 350,000 ($95,303) or more over 5 to 25 years, and buy in Dubai, DIFC or Abu Dhabi. Those are one bank’s criteria on 5 November 2026 and differ between lenders.
The rulebook also provides that the repayment assessment is not based on future property price rises or an expected increase in the borrower’s earnings. A borrower comparing offers can therefore expect the bank to test affordability on current documented income. The worked examples later in this guide apply the 50% cap, the 7-year income limit and a 2-point stress test to a AED 1,600,000 ($435,671) loan.
A Mortgage in Dubai for Foreigners Who Live Abroad
Because the regulation has no separate non-resident category, the terms for a borrower without a UAE residence permit come from each bank’s own policy. The published figures below are examples from bank pages read on 5 November 2026. Each is a starting point stated by that bank and not a rule.
| Bank page | What it states for non-residents | Date basis |
|---|---|---|
| First Abu Dhabi Bank, first-time homeowner page | Non-resident home loans of up to 50% of the property’s value, with a maximum loan figure of 10 million shown on the page | Page read 5 November 2026; footer copyright 2026 |
| HSBC UAE how-to-apply page | Applicants who live outside the UAE may still be able to apply if they are customers of HSBC’s private bank or its higher retail tier; the page directs them to a relationship manager | Page read 5 November 2026 |
| Emirates Islamic home finance page | Non-residents can apply; the page lists separate documents for salaried and self-employed non-residents | Page read 5 November 2026; footer copyright 2026 |
The difference in own funds is large. On a AED 2,000,000 ($544,588) property, an 80% loan for a resident first-time buyer leaves AED 400,000 ($108,918) to fund, while a 50% loan leaves AED 1,000,000 ($272,294). The gap is AED 600,000 ($163,376), which is the extra equity a buyer needs at a bank that applies 50% to non-residents. The arithmetic is 50% minus 20% of AED 2,000,000 ($544,588).
On the registration side, the DLD pages list a passport as the identity document for non-resident foreigners. The mortgage registration service names a passport copy for a non-resident foreigner in place of the UAE ID, and the sale registration service accepts a valid passport from non-resident foreigners. Where the buyer is abroad, the DLD pages mention a power of attorney for a representative, and the sale page lists the developer’s no-objection certificate (e-NOC) among the documents for resale in freehold areas.
Eligibility and Documents Banks List
Eligibility is set by the lender within the regulation. The common elements are verified income, an acceptable credit record, and a property the bank is willing to lend against. For residents, the credit record is held by the Al Etihad Credit Bureau; the HSBC page states that its approval in principle has no effect on a credit score, while a full application carries a full credit bureau check that is recorded on the bureau and visible to other companies.
The Emirates Islamic home finance page gives one of the more detailed document lists among the pages reviewed. The table summarises it as shown on 5 November 2026.
| Applicant type | Documents listed |
|---|---|
| Salaried resident | Passport with residence visa; labour contract; original salary certificate under 45 days old or salary transfer letter; last three months’ pay slips; last six months’ bank statements showing salary credits; liability letter under 30 days old |
| Salaried non-resident | Original passport; original salary certificate under 45 days old; last three months’ pay slips; last six months’ bank statements showing salary credits; liability or reference letter not more than 45 days old; latest two years’ tax returns (if applicable); credit bureau report (if applicable) |
| Self-employed resident | Passport with residence visa; trade licence; Chamber of Commerce registration; partnership page if there are several partners; memorandum and articles of association; audited financial statements for the last two years; labour contract; last 12 months’ business account statements; last six months’ personal statements |
| Self-employed non-resident | Original passport; the same business documents as residents; last 12 months’ business and personal account statements; liability or reference letter; latest two years’ tax returns (if applicable); credit bureau report (if applicable) |
| Property documents, all applicants | Quote or offer letter from the seller; Sale and Purchase Agreement; title deed and site plan; receipts for the down payment made to the seller |
The HSBC page shows a shorter first stage. For an approval in principle it lists a valid passport, visa and Emirates ID, a salary certificate and details of any debts. For the full application it adds a personal bank statement dated within the past six months, property ownership documents and proof of the funds for the down payment. A seller’s liability letter from the bank or developer is part of the DLD’s file when the property being sold is itself mortgaged, covered in the process section below.
Rates on a Mortgage in Dubai for Foreigners: EIBOR, Fixed and Variable
Mortgage pricing in the UAE is quoted in two ways. A fixed rate holds for an initial period and then reverts to a variable rate. A variable rate is a benchmark plus a margin set by the bank. The benchmark most banks name is the 3-month Emirates Interbank Offered Rate (EIBOR). The HSBC variable-rate page says the rate rises and falls with the 3-month AED EIBOR and is reviewed every 3 months, and its fixed-rate page lists fixed periods of 1, 2, 3 or 5 years, after which the loan moves to 3-month EIBOR plus the bank’s margin. The Emirates NBD key facts statement lists fixed introductory periods of 2, 3 or 5 years or a fully variable option.
| Item | Figure | As-of date | Source |
|---|---|---|---|
| CBUAE Base Rate (overnight deposit facility) | 3.9%, raised from 3.65% by 25 basis points | Effective 17 September 2026; maintained at 3.9% in October 2026 | CBUAE release on the increase and CBUAE release on the hold |
| 3-month EIBOR | 4.28% | 4 November 2026 | Almasraf rates page |
| 3-month SOFR (shown beside EIBOR) | 4.04% | 4 November 2026 | Almasraf rates page |
| Example fixed home-loan rate, first 3 years | 4.10% to 6.10%, indicative | 4 November 2026 | Almasraf rates page |
| Example reversion pricing | 3-month EIBOR plus 1.99% to 2.99%, minimum rate 4.10% to 6.10% | 4 November 2026 | Almasraf rates page |
The Almasraf page states that its rates are indicative and may vary by credit bureau score, salary slab and customer segment. The CBUAE said both of its recent Base Rate decisions followed the US Federal Reserve’s decision on the Interest Rate on Reserve Balances. The Base Rate is a policy rate for the overnight deposit facility, and EIBOR is the interbank rate that mortgage margins are added to, so the two are different numbers.
The reversion arithmetic
The formula can be evaluated with the 4 November figures. If 3-month EIBOR stays at 4.28%, a margin of 1.99% gives 4.28% + 1.99% = 6.27%, and a margin of 2.99% gives 4.28% + 2.99% = 7.27%. Both are above the 6.10% top of the fixed range on the same page, which shows why the reversion rate, and not only the introductory rate, is part of the cost of a fixed-rate product. EIBOR moves, so these sums describe the formula on one date and are not a forecast. The CBUAE rulebook already builds this point into affordability: Article 3(1) requires the stress test to use the rate that will apply when an introductory rate ends.
Fixed versus variable in one comparison
| Feature | Fixed period then variable | Variable throughout |
|---|---|---|
| Rate during first years | Set in the offer for 1, 2, 3 or 5 years on the pages reviewed | Benchmark plus margin, reset on the bank’s review schedule (HSBC: every 3 months) |
| After the first period | Reverts to 3-month EIBOR plus the bank’s margin | No change in structure |
| Payment pattern | Fixed monthly payment during the fixed period | Payment can change at each review |
| What the offer must show | Both rates and the revert date (Art. 4 requires the rate and calculation method to be disclosed) | Benchmark, margin and any minimum rate |
Costs of a Mortgage in Dubai for Foreigners
The loan adds three groups of cost to a purchase: DLD charges for registering the mortgage, the bank’s own fees, and insurance. The DLD charges are on top of the sale registration charges that apply to every purchase, which the site’s guide to buying property in Dubai: fees and costs sets out in full. The table lists each item with its rate and source.
| Cost | Amount | Source and date |
|---|---|---|
| DLD mortgage registration fee | 0.25% of the mortgage value | DLD mortgage registration page, updated 3 November 2026 |
| Title deed issuance (ordinary mortgage) | AED 250 ($68) | Same page |
| Knowledge and innovation fees | AED 10 ($3) each per drawing | Same page |
| Service partner fee, ordinary mortgage | AED 4,000 ($1,089) plus VAT | Same page |
| Service partner fee, provisional (off-plan) sale | AED 5,000 ($1,361) plus VAT | Same page |
| Sale registration, ready property | 2% seller and 2% buyer on the DLD page (4% in total), plus AED 250 title deed, AED 250 unit map, AED 10 + AED 10 knowledge and innovation fees and a service partner fee of AED 4,000 ($1,089) plus VAT at AED 500,000 ($136,147) or more | DLD property sale registration, updated 3 November 2026 |
| Bank processing or arrangement fee | 1% standard at Emirates Islamic (0% in third-party settlement cases); 1.05% including VAT in the Emirates NBD key facts statement | Emirates Islamic and Emirates NBD |
| Valuation fee | AED 3,150 ($858) for a completed property at Emirates NBD | Emirates NBD key facts statement |
| Life insurance | Example rate 0.018% a month of the outstanding loan, or AED 144 ($39) on AED 800,000 ($217,845) | Emirates NBD key facts statement |
| Property insurance | Example rate 0.01% a month plus VAT, on the higher of market or property value | Emirates NBD key facts statement |
Two notes on the sources. The Emirates NBD key facts statement shows a 2021 copyright notice and no effective date, so its figures illustrate how a bank sets out fees and are not a current quotation. The HSBC pages say the full list of arrangement, valuation and other charges sits in the bank’s Schedule of Services and Tariffs, which is the document that fixes the amounts for a given loan. VAT on the service partner fee is at the UAE standard rate of 5%, introduced on 1 January 2018 per the Ministry of Finance.
Under Article 7 of Law 14/2008 the mortgagor bears the registration fees unless the parties agree otherwise, which is why the mortgage registration items appear in the borrower’s cost column. Article 4 of the CBUAE rulebook requires that fees and charges are detailed in a separate schedule attached to the loan contract, that the borrower receives information on the total cost of the loan over its life, and that the lender notifies customers at least two months before changing commissions or fees. The ongoing costs of owning the unit, such as the charges described in the Dubai service charges guide, sit outside the loan and continue for as long as the unit is owned.
Worked Example: Cash Needed on a AED 2,000,000 ($544,588) Apartment
The tables below are an illustration and not a quotation. The inputs are: a price of AED 2,000,000 ($544,588); the LTV ceilings from the CBUAE rulebook; DLD fees from the pages cited above; a bank processing fee of 1% (the Emirates Islamic standard rate); a valuation fee of AED 3,150 ($858) (the Emirates NBD completed-property figure); VAT of 5% on service partner fees; and the buyer paying the whole 4% sale registration fee. Broker commission, insurance and moving costs are excluded. Scenario D is a ready property bought by a non-resident at a bank that applies 50%, using the FAB-style ceiling as the assumed ratio.
Step 1: loan, own funds and fees
| Line | A. Resident, first home, ready | B. Resident, second home, ready | C. Off-plan (any buyer) | D. Non-resident, ready, 50% (bank policy) |
|---|---|---|---|---|
| LTV applied | 80% | 60% | 50% | 50% |
| Loan = price × LTV | AED 1,600,000 ($435,671) | AED 1,200,000 ($326,753) | AED 1,000,000 ($272,294) | AED 1,000,000 ($272,294) |
| Down payment = price − loan | AED 400,000 ($108,918) | AED 800,000 ($217,835) | AED 1,000,000 ($272,294) | AED 1,000,000 ($272,294) |
| Sale registration (4% + title deed 250 + map 250 + fees 20 + partner fee 4,000 × 1.05 on ready; off-plan: 4% + 20 + 250 + 250) | AED 84,720 ($23,069) | AED 84,720 ($23,069) | AED 80,520 ($21,925) | AED 84,720 ($23,069) |
| Mortgage registration (0.25% of loan + 250 + 20 + partner fee × 1.05) | AED 8,470 ($2,306) | AED 7,470 ($2,034) | AED 8,020 ($2,184) | AED 6,970 ($1,898) |
| Bank processing fee (1% of loan) | AED 16,000 ($4,357) | AED 12,000 ($3,268) | AED 10,000 ($2,723) | AED 10,000 ($2,723) |
| Valuation fee | AED 3,150 ($858) | AED 3,150 ($858) | AED 3,150 ($858) | AED 3,150 ($858) |
| Total fees | AED 112,340 ($30,590) | AED 107,340 ($29,228) | AED 101,690 ($27,690) | AED 104,840 ($28,547) |
| Total cash = down payment + fees | AED 512,340 ($139,507) | AED 907,340 ($247,063) | AED 1,101,690 ($299,984) | AED 1,104,840 ($300,841) |
Scenario A shows the arithmetic in full. The sale registration is AED 80,000 ($21,784) for the 4% fee, plus AED 250 ($68) for the title deed, AED 250 ($68) for the unit map, AED 20 ($5) in knowledge and innovation fees, and AED 4,200 ($1,144) for the partner fee (AED 4,000 plus 5% VAT), which totals AED 84,720 ($23,069). The mortgage registration is 0.25% of AED 1,600,000 ($435,671), which is AED 4,000 ($1,089), plus AED 250 ($68), AED 20 ($5) and AED 4,200 ($1,144), which totals AED 8,470 ($2,306). Adding the bank’s 1% fee of AED 16,000 ($4,357) and the valuation fee gives AED 112,340 ($30,590) in fees, and with the AED 400,000 ($108,918) down payment the cash requirement is AED 512,340 ($139,507), or 25.6% of the price.
Scenario B shows the effect of the 60% ceiling for a second or investment property: the loan falls to AED 1,200,000 ($326,753) and the down payment rises to AED 800,000 ($217,835). Scenario C shows the off-plan ceiling of 50% and the higher provisional-sale partner fee. In practice off-plan cash is spread across the developer’s schedule (see the off-plan buyers’ guide), so the total in the table does not fall due in one payment. The overlap between sale and mortgage registration fees on the same day may be treated differently in practice, since the DLD page on registering the sale of a mortgaged property says registrar fees are waived when a mortgage is registered the same day. The table counts every item separately and may therefore overstate the total.
Step 2: the monthly payment
For a reducing-balance loan, the monthly payment is P × r ÷ (1 − (1 + r)^−n), where P is the loan, r is the monthly rate (annual rate ÷ 12) and n is the number of months. The rates used below, 4.10%, 5.10% and 6.10%, are assumptions: the low and high ends of the fixed range on the Almasraf page and the midpoint between them. The loan is AED 1,600,000 ($435,671) from Scenario A. The table shows the payment for three terms; the maximum under the rulebook is 25 years.
| Annual rate (assumed) | 15 years | 20 years | 25 years |
|---|---|---|---|
| 4.10% | AED 11,915 ($3,244) | AED 9,780 ($2,663) | AED 8,534 ($2,324) |
| 5.10% | AED 12,736 ($3,468) | AED 10,648 ($2,899) | AED 9,447 ($2,572) |
| 6.10% | AED 13,588 ($3,700) | AED 11,555 ($3,146) | AED 10,407 ($2,834) |
The 5.10% over 25 years line is worked as follows. The monthly rate is 5.10 ÷ 12 = 0.425%, and the number of payments is 300. The payment is AED 1,600,000 ($435,671) × 0.00425 ÷ (1 − 1.00425^−300), which is AED 9,447 ($2,572) a month. Over 300 payments the borrower pays AED 2,834,069 ($771,700), of which AED 1,234,069 ($336,030) is interest. At 4.10% over 15 years the total interest is AED 544,762 ($148,336), and at 6.10% over 25 years it is AED 1,522,054 ($414,446), so rate and term together change the cost of the same loan by a large margin.
Step 3: the income test
The rulebook limits the debt burden ratio to 50% and, for expatriates, the loan to 7 years of annual income. Applying both to the AED 1,600,000 ($435,671) loan, with no other debts assumed:
- DBR test at the 5.10% payment: AED 9,447 ($2,572) ÷ 0.50 = AED 18,894 ($5,145) of gross monthly income needed.
- 7-year income test: AED 1,600,000 ($435,671) ÷ 7 = AED 228,571 ($62,239) of annual income, which is AED 19,048 ($5,187) a month.
- Stress test: at 2 percentage points above 5.10%, the rate is 7.10% and the payment becomes AED 11,411 ($3,107); AED 11,411 ($3,107) ÷ 0.50 = AED 22,821 ($6,214) of monthly income.
The binding figure in this example is the stress test, because Article 3(1) requires lenders to assess the loan at 2 to 4 points above the current rate. Existing loan and credit card payments reduce the room under the 50% cap one for one, and the bank may count only part of bonuses and non-standard income, as Article 2(3) provides. The guide to what it costs to buy an apartment in Dubai shows typical price levels by area for readers who want to test the same sums on a different price.
Off-Plan Mortgages and Developer Payment Plans
The CBUAE sets a single 50% ceiling for property bought off-plan “regardless of purpose, value, or category of purchaser”, with the reason stated in the rulebook as the long development process and the higher risk to completion. The same article sets rules on how lenders release money for property under construction. Where stage payments are part of the financing, the lender must first use the buyer’s own equity to pay the developer before it advances any loan money, and payments follow completion milestones confirmed physically by the lender or by a qualified professional who is independent of both the borrower and the developer (Article 2(1)).
In Dubai the legal steps run through the DLD’s provisional register. The DLD service for a sale registration associated with an initial mortgage runs through the Oqood portal, states a service time of 6 business days, and requires the sale and purchase contract to be registered in the provisional register within 90 days of signing. It lists a bank letter stating the mortgage value and date, plus three mortgage contracts signed by both parties, as the mortgage documents. The fees on that page are the 4% sale registration split 2% and 2%, AED 10 and AED 10 in knowledge and innovation fees, AED 250 for the title deed, a map fee, a developer self-registration fee of AED 1,000 ($272) and the mortgage fee of 0.25% of the mortgage value.
Law 8 of 2007 explains where off-plan payments sit. Payments from off-plan purchasers go into an escrow account opened in the project’s name (Articles 2 and 7), the funds may be used only for that project (Article 9), and where a developer mortgages the project the loan amounts are deposited in the same escrow account (Article 13). These rules relate to the developer’s finance and are separate from the buyer’s own mortgage, although both can exist on one project.
| Route | How it is financed | Points from the sources |
|---|---|---|
| Ready property with a bank mortgage | Bank loan up to the LTV ceiling plus own funds | 80% / 70% / 60% ceilings; mortgage registered with the DLD; independent valuation first |
| Off-plan with a bank mortgage | Bank loan up to 50%, released against verified milestones after the buyer’s equity is used | 50% ceiling; provisional-register registration within 90 days; bank letter and three mortgage contracts |
| Off-plan on the developer’s payment plan | Instalments to the developer under the sale contract, with payments paid into the project escrow account | Terms are set in the sale contract; see the site’s guides on off-plan buying and low-deposit purchases |
| Cash | No lender involved | Sale registration fees apply; no mortgage registration fee |
Some buyers use a developer plan during construction and apply for a mortgage on a completed unit. In that case the ready-property ceilings in the CBUAE table apply to the completed unit, subject to the valuation at that time. The site’s guide on buying property in Dubai with a low down payment describes how developer plans are structured, and the handover and snagging guide covers the stage at which a unit becomes ready.
The Application Process, Step by Step
The sequence below combines the CBUAE rulebook, the DLD service pages and the HSBC process description. Timings are those stated by the source named, not commitments for any particular file.
| Step | What happens | Source and stated timing |
|---|---|---|
| 1. Eligibility check | Income, debts and age are tested against the DBR, stress test and income multiple | CBUAE rulebook, Art. 3 |
| 2. Approval in principle | Conditional approval after the passport, visa and ID, salary certificate and debt details are supplied; an adviser calls back within 2 business days of the online form, and approval usually follows within about 60 minutes of documents and is valid for 60 days | HSBC UAE |
| 3. Property agreement | Sale and Purchase Agreement or reservation, with the developer’s schedule for off-plan | Emirates Islamic property documents list |
| 4. Valuation | Independent on-site valuation by a qualified third party before the bank commits irrevocably | CBUAE rulebook, Art. 2(5) |
| 5. Loan documents | Offer with the amount, term, rate, instalment, insurance requirement and fee schedule; the borrower signs each page and receives a copy signed by both parties | CBUAE rulebook, Art. 4 |
| 6. Mortgage registration | Bank uploads documents to the DLD online mortgage system, the DLD audits the file and fees are deducted from the bank account; or the parties attend a registration trustee office. Stated service time 20 to 25 minutes | DLD mortgage registration page |
| 7. Completion | Title transfer and mortgage registration are recorded in the property register; under Article 9 of Law 7/2006 such transactions are valid only once recorded | Law 7/2006, Art. 9 |
The HSBC fixed-rate page states that arranging a home loan usually takes up to 14 working days once the application is in. The DLD mortgage page lists the output documents as electronic, including the certificate of title and the title deed, and emails them to the customer. For individuals using a trustee office, the DLD lists a letter from the mortgagee bank, three bank-certified mortgage contracts signed by both parties, the UAE ID for identification only or a passport copy for a non-resident foreigner, the developer’s e-NOC for off-plan property obtained through the Dubai REST app, and a power of attorney where a representative acts.
Buying a unit that already has a mortgage
If the seller still owes the bank, the DLD service for registering the sale of a mortgaged property applies. The sale completes only after a mortgage release letter from the bank is submitted. Individuals bring a liability letter from the bank, or a letter from the developer stating the remaining amount, and three manager’s cheques: one to the bank or developer for the debt, one to the seller for any remainder, and one to the DLD for the 4% fee. The page lists a mortgage release procedure fee of AED 1,290 ($351) and a registrar fee of AED 315 ($86) for releasing the mortgage, and says registrar fees are waived if the new mortgage is registered the same day. The site’s guide to selling property in Dubai covers the seller’s side of the same transaction.
Insurance, Early Settlement and Refinancing
Insurance is a condition of many loans. The HSBC variable-rate page says life and property insurance can be arranged and that having both is mandatory for UAE properties. The Emirates NBD key facts statement describes life insurance covering the outstanding loan for death and permanent total disability, subject to policy terms, and property insurance on the higher of market value or property value. Scaling the statement’s example rates to Scenario A gives an indication of size: 0.018% a month of AED 1,600,000 ($435,671) is AED 288 ($78) a month for life cover on the opening balance, and 0.01% a month of AED 2,000,000 ($544,588) plus 5% VAT is AED 210 ($57) a month for property cover. Those figures apply the example rates only; the premiums on a real loan come from the insurer and the offer.
The cap on early settlement fees
The CBUAE press release of 10 October 2019 reduced the early or partial settlement fee on home loans from 3% of the outstanding balance to 1% of the outstanding balance or AED 10,000 ($2,723), whichever is less. The rulebook’s Article 4 adds that charges to refinance with another institution or to repay early are limited to the lender’s actual cost of breaking a fixed loan and/or the fees allowed by Regulation No. 29/2011, and that borrowers face no impediment to refinancing elsewhere. The Emirates NBD statement is consistent with the formula: it lists early settlement at 1.05% of the outstanding principal or AED 10,500 ($2,859), whichever is lower, which is AED 10,000 plus 5% VAT.
| Point in the loan (Scenario A at 5.10%, 25 years) | Outstanding balance | 1% of balance | Fee under the 2019 formula |
|---|---|---|---|
| After 3 years (36 payments) | AED 1,497,271 ($407,698) | AED 14,973 ($4,077) | AED 10,000 ($2,723) |
| After 5 years (60 payments) | AED 1,419,535 ($386,531) | AED 14,195 ($3,865) | AED 10,000 ($2,723) |
| After 10 years (120 payments) | AED 1,186,777 ($323,152) | AED 11,868 ($3,232) | AED 10,000 ($2,723) |
| After 15 years (180 payments) | AED 886,575 ($241,409) | AED 8,866 ($2,414) | AED 8,866 ($2,414) |
The balance is computed as P × (1 + r)^k − payment × ((1 + r)^k − 1) ÷ r with r = 0.425% a month and k payments made. While the balance is above AED 1,000,000 ($272,294), 1% exceeds AED 10,000 ($2,723), so the AED 10,000 ($2,723) limit is the one that applies; the 1% figure only becomes the lower amount once the balance drops below that level. A bank’s contract may set a lower fee or none: the HSBC variable-rate page states no early settlement fee applies if the loan is repaid in full after 3 years, and it allows overpayments of up to 25% of the outstanding balance. The contract and the bank’s current fee schedule decide the figure for a given loan.
The same rulebook limits changes during the loan. Lenders may not alter terms or conditions during the tenor unless the borrower agrees in writing, and customers must receive at least two months’ notice of changes to commissions or fees (Article 4). The debtor’s right to repay early is also set out in Article 29 of Law 14/2008, and the DLD lists a separate mortgage release service with its own fees, described in the section on buying a unit that already has a mortgage.
Mortgaged Property and the Golden Visa Conditions
Both the DLD (investor service page) and the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA investor page) publish service pages for the 10-year residence permit for real estate investors. Neither page says that buying property grants a permit; they describe the conditions on which an applicant who owns qualifying property can apply. The site’s explainer on the Dubai Golden Visa covers the wider programme.
| Condition | DLD investor service page (updated 3 November 2026) | GDRFA investor page (updated 4 November 2026) |
|---|---|---|
| Minimum value | Purchase value of at least AED 2,000,000 ($544,588) at the time of purchase; property wholly owned by the applicant, in one or more properties | Property worth at least AED 2,000,000 ($544,588); for a share in joint property, the share must reach AED 2,000,000 ($544,588) |
| Mortgaged property | Allowed; a bank letter is needed indicating AED 2,000,000 ($544,588) paid, and the letter is a no-objection letter that shows the amount paid and the remaining balance | Acceptable and covers all types of property; a lien is placed on the property to keep ownership in place for the permit period under DLD procedures |
| Value evidence | e-Certificate of Title or title deed | DLD property status statement certificate; a valuation certificate from a DLD-licensed office may be accepted |
| Other conditions | Applicant must be inside the UAE; only the applicant attends; service time 7 to 10 business days | Property may not be disposed of during the 10-year permit period |
The two pages differ in emphasis: the DLD page keys on the amount shown as paid in the bank’s letter, while the GDRFA page keys on the DLD certificate of value and the lien. How the paid amount is determined for a given loan is shown in the bank’s letter and assessed by the DLD. For the AED 2,000,000 ($544,588) apartment in Scenario A, the buyer’s own contribution at an 80% loan is AED 400,000 ($108,918) before fees, which is a figure that can be compared with the wording of the DLD page. A mortgage in Dubai for foreigners does not change the rule that the permit conditions are assessed by the authorities, not the bank.
Frequently Asked Questions
Can foreigners get a mortgage in Dubai?
Yes. A mortgage in Dubai for foreigners is available from banks and finance companies licensed by the CBUAE, which Article 4 of Law 14/2008 names as the only lenders allowed to take a mortgage on Dubai real property. The CBUAE’s expatriate ceilings are 80% for a first home below AED 5,000,000 ($1,361,470), 70% above that value and 60% for a second or investment property, with each bank applying its own criteria within those limits.
Can a non-resident get a mortgage in Dubai?
The CBUAE table has no separate non-resident line, and non-resident terms come from bank policy. The FAB page read on 5 November 2026 states non-resident loans of up to 50% of the property value, and HSBC’s page says non-residents may be able to apply if they are private bank or higher-tier retail customers. On a AED 2,000,000 ($544,588) property, 50% leaves AED 1,000,000 ($272,294) of own funds, against AED 400,000 ($108,918) at 80%. A mortgage in Dubai for foreigners who live abroad is therefore more equity-heavy at the banks reviewed.
How much down payment is needed?
The minimum own funds are 20%, 30%, 40% or 50% depending on the category: 20% for an expatriate’s first home below AED 5,000,000, 30% above it, 40% for a second or investment property, and 50% off-plan. The own funds must come from the buyer’s resources and not from personal loans or credit cards (rulebook Art. 2(4)). Fees come on top: in Scenario A they total AED 112,340 ($30,590).
What interest rate applies?
Rates are set by each bank. On 4 November 2026 the Almasraf page showed an indicative fixed rate of 4.10% to 6.10% for the first 3 years and reversion pricing of 3-month EIBOR plus 1.99% to 2.99%, with 3-month EIBOR at 4.28%. The CBUAE Base Rate stood at 3.9% after the increase effective 17 September 2026. A mortgage in Dubai for foreigners is priced on the same benchmark basis as a resident’s loan.
What is the maximum loan term and age?
The maximum tenor under the rulebook is 25 years. The fixed cap on age at the last repayment was lifted in October 2019, so each lender sets its own limit; the HSBC UAE page lists applicants aged 21 to 65 with terms of 5 to 25 years.
How much does it cost to register a mortgage?
The DLD charges 0.25% of the mortgage value plus AED 250 ($68) for the title deed, AED 10 ($3) each in knowledge and innovation fees and a service partner fee of AED 4,000 ($1,089) plus VAT, or AED 5,000 ($1,361) plus VAT for a provisional sale (page updated 3 November 2026). On a AED 1,600,000 ($435,671) loan the 0.25% element is AED 4,000 ($1,089).
Can the mortgage be repaid early?
Yes. Article 29 of Law 14/2008 gives the debtor the right to repay before maturity, and the CBUAE’s 2019 announcement set the early or partial settlement fee at 1% of the outstanding balance or AED 10,000 ($2,723), whichever is less. Banks’ contracts can set lower fees. A borrower under a mortgage in Dubai for foreigners can also refinance with another institution, which the rulebook says faces no impediment.
Does a mortgaged property count for the Golden Visa?
The DLD and GDRFA pages both say a mortgaged property is allowed. The DLD page asks for a bank no-objection letter showing the amount paid and the balance, with AED 2,000,000 ($544,588) paid as the figure stated on the page, while the GDRFA page refers to the DLD value certificate and a lien. The conditions are assessed by the authorities and can be checked on the pages cited.
What happens if repayments stop?
Law 14/2008 sets a court-supervised route. The lender serves at least 30 days’ notice through a Notary Public (Art. 25), the execution judge orders attachment and the property is sold at public auction (Arts. 26 and 28), and the judge may postpone the auction once for up to 60 days (Art. 27). Clauses that transfer ownership to the lender on default are void (Art. 11).
Which law governs a mortgage in Dubai for foreigners?
Dubai Law No. (14) of 2008 Concerning Mortgage in the Emirate of Dubai, issued on 14 August 2008, governs creation, ranking and enforcement, and the mortgage takes effect only when registered with the DLD (Art. 7). The CBUAE Regulations Regarding Mortgage Loans (C 31/2013, consolidated as of 8 April 2020) set the lending limits. Other related guides on the site include the inheritance guide for foreign property owners, the guide to property tax in Dubai and the rules for buying property in Dubai.
Last checked: 5 November 2026. Sources: CBUAE Regulations Regarding Mortgage Loans, CBUAE press release, 10 October 2019, CBUAE Base Rate increase release, CBUAE Base Rate hold release, DLD mortgage registration, DLD property sale registration, DLD sale registration with an initial mortgage, DLD sale of a mortgaged property, DLD Golden Visa investor service, GDRFA golden residence permit for investors, Dubai Law No. 14 of 2008, Dubai Law No. 7 of 2006, Dubai Law No. 8 of 2007, UAE Ministry of Finance, VAT, Almasraf rates, HSBC UAE how to apply, HSBC UAE variable rate, HSBC UAE fixed rate, Emirates Islamic home finance, First Abu Dhabi Bank first-time homeowner, Emirates NBD key facts statement.
