EIBOR 3M 3.69% CBUAE Base 3.65% Best Islamic 3.25% Best Conventional 3.70% EIBOR 3M 3.69% CBUAE Base 3.65% Best Islamic 3.25% Best Conventional 3.70%
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Knowledge Hub

Quick answers to common questions about mortgages, CBUAE regulations, and buying property in the UAE.

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In depth analysis and comparisons written by our mortgage research team.

Key Facts

The numbers and rules that matter most when getting a UAE mortgage.

80%

Max LTV (First Home)

For properties under AED 5M. Nationals can borrow up to 85%.

50%

DBR Cap (Expats)

Total monthly debt payments cannot exceed 50% of gross income for expats.

Income Multiple (Expats)

Maximum total borrowing is 7 times annual gross income for expat residents.

25 yrs

Max Mortgage Term

The maximum mortgage term in the UAE is 25 years.

4%

DLD Transfer Fee

Dubai Land Department charges 4% of the purchase price on transfer. Buyer typically pays.

1%

Mortgage Registration

0.25% of the loan amount to register the mortgage with DLD, plus AED 290 admin fee.

Frequently Asked Questions

What is a reducing rate mortgage?

A reducing rate (also called diminishing or annuity rate) is calculated on the outstanding balance each month. As you repay principal, the interest portion decreases. This is the standard way mortgages work globally and is the rate used in your actual mortgage contract.

What is EIBOR and why does it matter?

EIBOR (Emirates Interbank Offered Rate) is the rate UAE banks charge each other for short-term lending. Variable-rate mortgages are priced as EIBOR + a bank margin. When EIBOR drops, your variable rate drops. The current 3-month EIBOR is 3.69%.

How much deposit do I need?

For a first home under AED 5M: minimum 20% deposit for expats, 15-20% for nationals. Above AED 5M: 30-35%. Second homes require 35-40%. Non-residents typically need 40-50%. Plus budget 7-8% for fees (DLD transfer fee, agency commission, mortgage registration, valuation).

What is the Debt Burden Ratio (DBR)?

DBR limits total monthly debt repayments as a percentage of gross monthly income. CBUAE caps: UAE Nationals 60%, Expats 50%, Non-residents 45%. This includes your proposed mortgage payment, car loans, personal loans, and 5% of credit card limits.

Islamic vs conventional — what's the difference?

In an Islamic mortgage (Ijara or Murabaha), the bank buys the property and you pay rent or a cost-plus price. No interest is charged — instead you pay a "profit rate." The monthly payment is similar in practice, but the legal structure and ownership during the term differ. Islamic finance products are supervised by Shariah boards and comply with AAOIFI standards.

Can I get a mortgage as a non-resident?

Yes, several UAE banks offer mortgages to non-residents, though terms are stricter. Expect a higher deposit (40-50%), lower income multiple (5x vs 7x for residents), lower DBR cap (45% vs 50%), and fewer product choices. You'll need to provide income proof from your home country.

What fees are involved in buying property?

Budget 7-8% of property value on top of your deposit: DLD transfer fee (4%), agency commission (2%), mortgage registration (0.25% of loan + AED 290), property valuation (AED 2,500-3,500), bank processing fee (up to 1% of loan), and life insurance (required by most banks).

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