Take a buyer earning AED 40,000 a month with AED 3,000 of existing monthly debt, AED 500,000 in cash, looking at a 25-year mortgage at 4.5%, as an expat buying a first home. The Debt Burden Ratio caps all repayments at 50 percent of income, so 0.5 of 40,000 is 20,000, less the 3,000 already committed, leaving AED 17,000 a month for the new mortgage. At 4.5% over 25 years, that repayment supports a loan of roughly AED 3.06 million. The expat first-home loan-to-value cap is 80 percent, so income alone could fund a property near AED 3.8 million. But the deposit is only AED 500,000, and at 80% LTV the deposit must cover the 20 percent not borrowed. That limits the price to 500,000 divided by 0.20, which is AED 2.5 million. The deposit binds here, so the maximum price is about AED 2,500,000.
Constraint
Result
How it is calculated
Two Central Bank of the UAE rules set the limit and the binding one wins. The Debt Burden Ratio restricts total monthly debt repayments, including the new mortgage, to 50 percent of monthly income, so subtracting your existing debts from half your income gives the maximum new repayment. That repayment is converted into a maximum loan using standard reducing-balance amortisation at your rate and term, and the tool also applies a sanity guideline that the loan should not exceed about seven times annual income. Separately, the loan-to-value cap limits the loan to a percentage of the property value, typically 80 percent for an expat first home under AED 5 million and higher caps for nationals, with lower caps on second properties. Your cash deposit must cover the remaining share of the price, so a small deposit can cap the price below what your income alone would allow. The maximum property price shown is the lower of the income-driven and deposit-driven limits. UAE mortgage terms are also capped at 25 years.
Frequently asked questions
How much mortgage can I get in the UAE?
Two Central Bank rules cap your borrowing. The Debt Burden Ratio limits all monthly debt repayments, including the new mortgage, to 50% of your monthly income. Separately, the loan-to-value cap limits the loan to a percentage of the property value, typically 80% for an expat first home under AED 5 million. Your maximum price is whichever of these binds first.
What loan-to-value ratio applies to a UAE national buying a first home?
UAE nationals buying a first property can borrow up to 85% of the property value for homes priced under AED 5 million, compared with 80% for expatriates. For properties at or above AED 5 million the LTV cap drops to 70% for nationals and 65% for expats. Second properties attract a lower LTV of 65% regardless of nationality.
Can I get a UAE mortgage longer than 25 years?
No. The Central Bank of the UAE caps residential mortgage terms at 25 years. In addition, the loan must be fully repaid by the time the borrower reaches 70 years of age for expatriates, or 65 for salaried employees in some bank policies, so the effective term can be shorter depending on your current age.
How does an existing car loan affect my UAE mortgage capacity?
Your existing car loan repayment is included in the Debt Burden Ratio calculation alongside the new mortgage. If the car repayment is AED 2,000 a month, that amount is subtracted from the 50% income allowance before any mortgage headroom is measured. Paying off the car loan before applying directly increases the mortgage you can qualify for.