Reviewed by Kaushal Jha · Published · 6 min read
Key facts
- Expats, first home below AED 5 million: maximum loan 80% of the value
- Expats, first home above AED 5 million: maximum loan 70%
- UAE nationals, first home up to AED 5 million: 85%; above AED 5 million: 75%
- Second and investment property: 60% for expats, 65% for UAE nationals
- Off-plan property: 50% for all buyers
The loan-to-value (LTV) ratio is the size of your mortgage compared with the property's value. If a bank lends AED 800,000 on a property valued at AED 1,000,000, the LTV is 80%. The Central Bank of the UAE sets the maximum LTV that any bank can offer, and banks are free to apply lower limits.
The maximum LTV limits
| Buyer | Property | Maximum LTV | Minimum down payment |
|---|---|---|---|
| Expatriate | First home, value below AED 5m | 80% | 20% |
| Expatriate | First home, value above AED 5m | 70% | 30% |
| Expatriate | Second home or investment | 60% | 40% |
| UAE national | First home, value up to AED 5m | 85% | 15% |
| UAE national | First home, value above AED 5m | 75% | 25% |
| UAE national | Second home or investment | 65% | 35% |
| Any buyer | Off-plan (under construction) | 50% | 50% |
Each borrower can claim only one property in the "first home" category.
Your down payment must be your own money
The Central Bank requires your down payment to come from your own resources, not from other borrowing such as a personal loan or credit card. Banks will check where the money comes from.
Buying costs come on top
The down payment isn't the only cash you need. Government transfer and registration fees, agent and trustee fees, valuation and bank fees are paid upfront, and banks generally don't finance them. Use our buying costs calculator for an estimate, and we'll confirm the exact figures for your purchase.
Why a bank may lend you less
The LTV limit is a maximum, not an entitlement. A bank may lend less if:
- your income doesn't support the repayments within the 50% debt burden ratio limit
- the loan would exceed 7 times your annual income (expatriates) or 8 times (UAE nationals)
- the valuation comes in below the price you agreed
- the bank's own policy is stricter for your profile, the property or the developer
Off-plan and handover
During construction the maximum loan is 50%, and where a bank finances stage payments it must use your contribution first. Many buyers wait and finance the balance at handover, when the property is complete. See off-plan and handover financing.
Non-residents
The limits above are maximums for UAE lenders. For buyers living outside the UAE, each bank sets its own lower limits. See non-resident mortgages.