Tools · Dubai
Mortgage calculator
A Dubai mortgage is sized by the Central Bank before it is sized by the bank: a minimum deposit, a maximum term, and a ceiling on how much of your income the repayment may take. Put in a price, a deposit, a rate and a term, and the calculator gives you the monthly figure, the interest over the life of the loan, and the cash you need on completion day — the part that surprises people.
The loan
AED 6,670
Monthly repayment
Over 25 years. Life and buildings insurance are on top.
AED 1,200,000
Loan
The price less your AED 300,000 deposit.
AED 415,320
Cash on completion
Deposit plus AED 115,320 in fees: 4% DLD, 2.1% agency, mortgage registration, valuation and the bank’s arrangement fee.
AED 800,997
Interest over the term
What the loan costs in total at this rate, if it never changed.
To pass the 50% debt-burden rule on this repayment alone, a lender will look for about AED 13,340 a month in income, before any other loans or cards you carry.
The rules
How a Dubai mortgage is sized
The deposit is set by regulation, not by the bank. For a first home under five million dirhams an expatriate needs 20% down and a UAE national 15%; above five million it is 30% and 25%. A second or investment property needs 35% from anyone, and an off-plan purchase 50%. The bank may ask for more; it may not accept less.
The term runs to a maximum of twenty-five years and has to end before you turn sixty-five, or seventy if you are self-employed, so a buyer of forty-five is looking at twenty years at most. The repayment, together with every other loan and card you hold, may not take more than half of your monthly income — the debt-burden ratio — which is the rule that actually decides how much you can borrow.
The rate is the one number here that moves. Most Dubai mortgages open with a fixed period of one to five years and then revert to a margin over EIBOR, the interbank rate, so the figure you agree today is the figure for the fixed period only. The default in the calculator is illustrative; the rate you would be offered depends on the lender, your profile and the day, and our mortgage desk can tell you what it is.
On the day
What you pay in cash, on top of the deposit
- DLD transfer fee
- 4% of the purchase price, paid by the buyer to the Dubai Land Department, plus a title deed fee and the trustee office’s charge for handling the transfer. Banks may no longer lend this; it is cash.
- Agency commission
- Conventionally 2% of the price, and 5% VAT is charged on the commission, so 2.1% all in. Cash, on completion.
- Mortgage registration
- 0.25% of the loan amount plus a small fixed fee, paid to the DLD to register the bank’s charge on the title. This one is set by regulation and does not vary by lender.
- Valuation and arrangement
- The bank values the property before it lends, and charges an arrangement or processing fee on the loan — commonly up to 1% of the amount borrowed, plus VAT. Both vary by lender; the calculator uses illustrative figures.
- Insurance
- Lenders require life cover on the borrower and buildings cover on the property for the life of the loan. Neither is in the monthly figure above; both are small next to it, and both are worth pricing before you sign.
Questions
What people ask about mortgages in Dubai
Can foreigners get a mortgage in Dubai?
Yes. Residents with a UAE visa and a salary or business income borrow from every major bank; non-residents can borrow too, from a shorter list of lenders and usually with a larger deposit. Freehold areas only — the property has to be one a foreign national can own.
How much deposit do I need for a mortgage in Dubai?
At least 20% for an expatriate’s first home under AED 5 million and 15% for a UAE national, rising to 30% and 25% above five million. A second property needs 35% down and off-plan needs 50%. These are Central Bank minimums; a lender can ask for more.
How much can I borrow?
Two ceilings apply and the lower one wins. The loan-to-value cap sets the most the bank may lend against the price. The debt-burden ratio says your repayment, with every other loan and card you carry, may not exceed half your monthly income. Most buyers hit the second one first.
What is the maximum mortgage term in Dubai?
Twenty-five years, and the loan has to be repaid by age 65 for the employed and 70 for the self-employed, whichever comes sooner. A shorter term raises the monthly figure and lowers the total interest; the calculator shows both.
Can the DLD fee and commission be added to the mortgage?
No. The 4% transfer fee, the agency commission and the registration charges are paid in cash on completion. Budget a little over 6% of the price on top of the deposit itself, plus the bank’s own fees.
Can I pay a Dubai mortgage off early?
Yes, and the early settlement fee is capped by the Central Bank at 1% of the outstanding balance or AED 10,000, whichever is lower. Overpaying during a fixed period may carry the same fee; ask before you sign.
What is on the market today is on Buy, and what buyers actually paid is in the sales reports. If you are buying to let, the rental yield calculator works out what the property returns once it is yours.