Buying property in the UAE as an expat is straightforward, but the mortgage market has its quirks. Maximum loan-to-value ratios are lower for expats than nationals, interest rates are tied to EIBOR (which moves with the Fed), and early repayment penalties can be steep. This guide covers everything from pre-approval to final registration.
Key takeaways
- -Expats can borrow up to 75% LTV for properties under AED 5 million (80% for UAE nationals).
- -Mortgage rates are typically EIBOR + 1.5-3%, currently around 5-7% total.
- -You need a minimum 25% down payment plus roughly 7-8% in fees (DLD registration, agency, valuation).
- -Maximum loan term is 25 years, and you must be under 65 (employed) or 70 (self-employed) at maturity.
- -Pre-approval takes 3-5 business days and costs nothing at most banks.
Mortgage eligibility for UAE expats
Most UAE banks offer mortgages to expats. Key requirements: minimum salary of AED 10,000-15,000 per month (varies by bank), minimum 6 months to 1 year in current employment, and clean credit history (check Al Etihad Credit Bureau).
Loan-to-value ratios for expats: up to 75% for the first property valued under AED 5 million, 65% for properties over AED 5 million. This means you need 25-35% as a down payment.
Maximum Debt Burden Ratio (DBR): your total monthly debt payments (including the new mortgage) cannot exceed 50% of your gross monthly income. This is a Central Bank regulation.
Self-employed applicants face additional scrutiny. You typically need 2 years of audited financials and may face a lower LTV (60-65%).
Understanding UAE mortgage rates
Most UAE mortgages are variable rate, tied to EIBOR (Emirates Interbank Offered Rate). A typical rate is EIBOR + 1.5-3%. Some banks offer 1-5 year fixed rate periods after which the rate reverts to variable.
As of 2026, total mortgage rates are in the 5-7% range. EIBOR moves closely with the US Federal Reserve rate (because the AED is pegged to USD).
Fixed rate mortgages (for the full term) are rare in the UAE. Most "fixed" offers are fixed for an initial period only.
When comparing banks, look at the total cost of the mortgage including processing fees (typically 1% of the loan), valuation fees (AED 2,500-3,500), and early settlement charges (1-3% of outstanding balance).
Total costs of buying property in the UAE
Beyond the purchase price, budget for 7-8% in additional costs:
Dubai Land Department (DLD) registration fee: 4% of the purchase price. This is the biggest single cost. Abu Dhabi charges 2%.
Agency fee: typically 2% of the purchase price plus VAT.
Mortgage registration fee: 0.25% of the loan amount.
Valuation fee: AED 2,500-3,500.
Bank processing fee: 1% of the loan amount (some banks waive this for salary transfer customers).
NOC (No Objection Certificate) from the developer: AED 500-5,000 depending on the developer.
For a property costing AED 1 million with a 75% mortgage, expect to pay roughly AED 325,000 upfront (AED 250,000 down payment + AED 75,000 in fees).
The buying process step by step
Step 1: Get pre-approved. This tells you exactly how much you can borrow. Provide salary certificates, bank statements (6 months), passport and visa copies, and credit bureau report.
Step 2: Find a property. Work with a RERA-registered agent. Verify the property is in a freehold area (expats can only buy in designated freehold zones).
Step 3: Sign a Memorandum of Understanding (MOU) with the seller and pay a 10% deposit (held by the agent or in escrow).
Step 4: Submit the formal mortgage application with the MOU. The bank orders a valuation.
Step 5: Once approved, the bank issues a final offer letter. Sign the mortgage agreement.
Step 6: Transfer at the Dubai Land Department (or Abu Dhabi Municipality). Buyer pays the DLD fee, seller hands over the title deed. The mortgage is registered against the property.
Common mistakes to avoid
Not budgeting for all fees: the 7-8% in costs on top of your down payment catches many first-time buyers off guard. Budget for it from the start.
Choosing the cheapest rate without reading the terms: some banks offer low teaser rates that jump after 1-2 years. Read the reversion rate carefully.
Buying off-plan without understanding the risks: payment plans spread over construction are appealing, but delays are common. Only buy off-plan from established developers (Emaar, Meraas, Aldar, DAMAC).
Not checking service charges: annual service charges vary wildly (AED 10-30 per sq ft). A cheap purchase price with high service charges costs more long-term.
Overleveraging: just because you can borrow AED 2 million does not mean you should. Keep your total housing costs (mortgage + service charges + maintenance) under 30% of your income.
Frequently asked questions
- Can expats get a mortgage in the UAE?
- Yes. Most UAE banks offer mortgages to expats with a minimum salary of AED 10,000-15,000/month. You can borrow up to 75% of the property value for properties under AED 5 million.
- How much deposit do I need to buy property in Dubai?
- Minimum 25% down payment for properties under AED 5 million (35% for over AED 5 million). Plus roughly 7-8% of the purchase price in fees (DLD, agency, bank, valuation).
- What are current mortgage rates in the UAE?
- Most mortgages are variable rate at EIBOR + 1.5-3%, currently totalling 5-7%. Some banks offer fixed rate periods of 1-5 years. Rates track the US Federal Reserve due to the AED-USD peg.