Residential Mortgage FAQs

Yes, early repayment is allowed, but most UAE banks charge an early settlement fee commonly capped at 1% of the outstanding loan balance or AED 10,000, whichever is lower. It's worth checking your specific lender's policy before making lump-sum payments.

Beyond the deposit, buyers should budget for the DLD (Dubai Land Department) transfer fee, mortgage registration fee, property valuation fee, and where applicable agent commission. Combined, these typically add up to an additional 6–7% of the property's purchase price.

Yes. Expats and foreign non-residents can obtain residential mortgages, provided the property is in a designated freehold area. Expat residents generally get the most favorable terms since banks can verify local income and credit history. Non-residents face stricter conditions, including lower LTV limits and larger down payment requirements.

Rates vary by lender and profile, but as of 2026 fixed introductory rates generally range from around 4.2% to 5.2%, reverting to a variable rate linked to EIBOR (typically 5.5%–6.4%) after the fixed period ends. Fixed-rate mortgages offer payment stability for an initial period (usually 1–5 years), while variable rates fluctuate with the market.

Most UAE banks offer mortgage terms of up to 25 years for salaried employees and up to 20 years for self-employed borrowers. Tenure is also capped by age the loan must generally be fully repaid by age 65 for salaried applicants and age 70 for self-employed applicants.

Standard requirements include a valid passport and UAE visa, Emirates ID, salary certificate or trade license (for self-employed applicants), 6 months of bank statements, and a signed sales agreement or MOU for the property. Additional documents may be requested depending on the lender and applicant profile.

The UAE Central Bank sets Loan-to-Value (LTV) caps based on buyer type: expat residents can typically borrow up to 80% of the property value, UAE nationals up to 85%, and non-residents up to 65%. These limits apply to properties under AED 5 million; higher-value homes carry lower LTV limits.

The minimum down payment depends on residency status and property value. Expats typically need at least 20% for properties under AED 5 million and 30% for higher-value homes. UAE nationals qualify with lower down payments around 15% and 25% respectively. Non-residents generally face higher requirements, often 35% or more.

Both UAE nationals and expat residents can apply for a residential mortgage. Banks typically require a minimum monthly salary (often AED 10,000–15,000 depending on the lender), a valid UAE residence visa for expats, and a debt burden ratio below 50% of gross monthly income. Self-employed applicants usually need at least two years of audited business accounts.