Dubai Mortgage Guide for Expats and Non-Residents: LTV Limits, EIBOR Rates and Costs

An expat resident can usually borrow up to 80% of the value of a first home in Dubai worth up to AED 5 million. Non-residents can borrow too, but typically only 50% to 65%. The rest, plus all the fees, has to come from your own cash. This guide explains the lending limits, how mortgage rates are set, what it costs, and how to compare offers. To test your own numbers, use our Dubai mortgage calculator.

Ways to pay for a Dubai property

Option	How it works	Best for
Cash	Full payment at transfer	Buyers with the capital, and the strongest negotiating position
Developer payment plan	Instalments during construction, sometimes continuing after handover (for example 60/40 or 70/30)	Off-plan buyers who want to spread payments without bank interest
Conventional mortgage	Bank loan at a fixed rate, then EIBOR plus a margin	Residents and eligible non-residents buying ready property
Islamic home finance	Sharia-compliant structure with a profit rate in place of interest	Buyers who want a Sharia-compliant product

Developer payment plans are not loans: there is no interest, but there is also no bank checking the valuation, and missing instalments triggers the default rules in your contract. Read off-plan refunds and cancellation rules before relying on one.

How much you can borrow: loan-to-value limits

The UAE Central Bank caps the loan-to-value ratio (LTV), which is the loan as a percentage of the property’s value.

Buyer and property	Maximum LTV	Minimum deposit
Expat resident, first property up to AED 5 million	80%	20%
Expat resident, first property above AED 5 million	70%	30%
Second or later mortgaged property	About 60% to 65%	35% to 40%
Off-plan property	50%	50%
Non-resident buying from abroad	Usually 50% to 65%, set by the bank	35% to 50%

Other limits that apply:

• Your total monthly debt repayments cannot exceed 50% of your monthly income.
• The maximum term is 25 years, and the loan must normally be repaid by age 65 for employees or 70 for the self-employed.
• Fees cannot be added to the loan. The 4% DLD fee and the agent commission must be paid in cash.

On a AED 2 million home at 80% LTV, the bank lends AED 1.6 million. You need AED 400,000 for the deposit and roughly AED 150,000 more for fees. See every buying fee explained.

Banks lend against the lower of the price and their own valuation. If the valuation comes in below the agreed price, you fund the gap.

How mortgage rates work: EIBOR plus margin

Most Dubai mortgages have two phases.

1. A fixed-rate period of one to five years, during which your rate and payment do not change.
2. A variable rate for the rest of the term, set as EIBOR plus the bank’s margin.

EIBOR is the Emirates Interbank Offered Rate, the benchmark at which UAE banks lend to each other. It is published daily for several periods, including one, three and six months. Because the dirham is pegged to the US dollar, EIBOR broadly follows US interest rates.

The margin is the bank’s fixed addition and stays the same for the life of the loan. If three-month EIBOR is 3.5% and your margin is 1.5%, your variable rate is 5.0%. When EIBOR moves, your payment moves with it.

Margins vary widely between banks and borrowers, which is why the margin matters more than the headline fixed rate. A low two-year fixed rate followed by a high margin can cost more over 25 years than a slightly higher fixed rate with a low margin. Always ask:

• What is the margin after the fixed period, and which EIBOR is it linked to?
• Is there a minimum (floor) rate?
• What does it cost to switch or settle early?

Islamic home finance

Islamic mortgages use structures such as Ijara (lease-to-own) or Murabaha (cost plus profit) in place of an interest-bearing loan. The cost is quoted as a profit rate, and in practice it is priced against EIBOR much like a conventional mortgage. The same Central Bank limits apply. Compare the two on total cost, fees and early settlement terms.

What a mortgage costs to set up

Cost	Typical amount
Mortgage registration (DLD)	0.25% of the loan + about AED 290
Bank arrangement fee	0.5% to 1% of the loan, plus VAT
Valuation	About AED 2,500 to 3,500, plus VAT
Life insurance	Required by the bank, paid monthly or yearly
Property insurance	Required by the bank
Early settlement	Capped at 1% of the outstanding loan or AED 10,000, whichever is lower

Getting a mortgage as a non-resident

Non-residents can get a Dubai mortgage, but on tighter terms:

• Lower LTV, so a deposit of 35% to 50%.
• Fewer banks offer it, and some restrict it to certain nationalities or income levels.
• More paperwork: passport, proof of income, six months of bank statements, tax returns or audited accounts if you are self-employed, and a credit report from your home country.
• Ready property only at most banks.

If you are an Indian resident, remember that money you send from India for the deposit falls under the RBI’s Liberalised Remittance Scheme. See the LRS rules and how to open a bank account in Dubai as an NRI.

How to compare banks

There is no single “best” bank. The right one depends on whether you are salaried or self-employed, resident or not, and how large the loan is. See the main banks in the UAE for an overview, and compare offers on these points:

1. Margin after the fixed period, not only the fixed rate.
2. Arrangement fee, and whether it can be waived.
3. Insurance costs, which some banks bundle at a high price.
4. Early settlement and partial payment terms.
5. Approval time, which matters when a seller wants to close in 30 days.

Get a pre-approval before you make an offer. It confirms your budget, and sellers take a pre-approved buyer more seriously. A mortgage broker can compare several banks for you, usually paid by the bank.

Frequently Asked Questions

What is the minimum down payment for a mortgage in Dubai?

For expat residents, 20% on a first home up to AED 5 million and 30% above that. Non-residents usually need 35% to 50%, and off-plan purchases need 50%.

Can non-residents get a mortgage in Dubai?

Yes. Several banks lend to non-residents, usually at 50% to 65% of the property value and only for ready property.

What is EIBOR?

The Emirates Interbank Offered Rate, the benchmark rate for lending between UAE banks. Variable mortgage rates are set as EIBOR plus the bank’s margin.

Can I include the DLD fee in my mortgage?

No. Fees must be paid from your own funds.

Is it better to fix the rate or take a variable rate?

A fixed period gives certainty for one to five years. After that, nearly all UAE mortgages move to EIBOR plus a margin, so the margin decides the long-term cost.

What is the penalty for paying off a Dubai mortgage early?

The early settlement fee is capped at 1% of the outstanding balance or AED 10,000, whichever is lower.

This guide is general information, not financial advice. Lending limits and bank terms change, so confirm the current position with the bank before you commit.