Plain-language guides to UAE property finance

Your Debt Burden Ratio (DBR) is the percentage of your gross monthly income that goes towards debt repayments — credit cards, personal loans, car finance and, once approved, your mortgage instalment. UAE Central Bank regulation generally caps total DBR at 50% of gross income.

Banks calculate this conservatively: they'll include minimum payments on credit cards (even if you pay in full each month) and any other outstanding facilities. If your DBR is close to the limit, reducing existing debt or extending your mortgage tenure to lower the monthly instalment can bring an application back within range. This is one of the first checks we run before approaching any lender on your behalf.

A fixed-rate mortgage locks your interest rate for an introductory period — commonly 1 to 5 years — giving you predictable monthly payments regardless of market movements. Once that period ends, most UAE mortgages revert to the bank's prevailing variable (often EIBOR-linked) rate.

Fixed rates suit buyers who value certainty and plan to hold the property through the fixed term. Variable rates can work out cheaper over time if market rates fall, but carry the risk of higher payments if they rise. Our mortgage calculator lets you model both phases of your loan together, so you can see exactly how your instalment changes when the fixed period ends.

Non-residents can buy property in the UAE's designated freehold areas and finance it through a growing number of banks offering non-resident mortgage programs. Expect a higher minimum down payment than a resident would need — often 40-50% — along with income verification suited to overseas employment or business ownership.

Because you won't be physically present for every step, working with a broker who can coordinate document certification, translation and remote signing is particularly valuable. We maintain relationships with the specific banks most active in non-resident lending.

UAE Central Bank mortgage caps set minimum down payments based on residency status and whether it's your first property: generally 15-20% for UAE nationals and 20-25% for expatriate residents on a first property under AED 5 million, with higher requirements above that threshold or for a second property.

Beyond the down payment itself, budget for a 4% transfer fee, agency commission if applicable, and a mortgage registration fee of around 0.25% of the loan amount plus a small registration charge. We provide a full cost breakdown before you make an offer on a property.

Refinancing makes the most sense when the rate gap between your current mortgage and today's market rate is wide enough to outweigh the cost of switching — typically a valuation fee, a new bank's processing fee, and any early-settlement charge from your existing lender (capped by regulation at a small percentage of the outstanding balance).

As a rule of thumb, if you have several years remaining on your mortgage and can secure a rate at least 0.5-0.75 percentage points lower, refinancing is usually worth evaluating. We run the exact numbers, comparing total cost over your remaining tenure, before recommending a switch.

Almost all UAE mortgage lenders require a life insurance policy covering the outstanding loan balance, so the property doesn't become a financial burden on your family if something happens to you. The premium is usually calculated monthly against your declining balance, which is why it reduces gradually over the life of the loan.

Our mortgage calculator includes a life insurance input so you can see this cost built into your total monthly payment from day one, rather than being surprised by it at the offer stage.