UAE mortgages for foreigners: how much you can borrow and how
Foreigners can take a mortgage from a UAE bank — both residents and people living abroad. Here are the Central Bank limits, the down payment, income requirements, every fee and what is different for off-plan.
Who can get a mortgage
UAE mortgages are available both to residents with a visa and Emirates ID and to non-residents living abroad. Residents have a wider choice of banks and terms; not every bank lends to non-residents, and usually with a bigger down payment. The property must be in an area where foreigners may own property.
UAE Central Bank limits
Central Bank rules cap the loan-to-value ratio. For resident expats: a first home up to AED 5 million — up to 80% of the value, above AED 5 million — up to 70%, second and further properties — up to 60%. For property under construction — up to 50%. Banks usually lend non-residents 50–60%. The exact percentage depends on the bank, your income and the property.
Borrower requirements
Monthly repayments on all loans must not exceed 50% of income. The term is up to 25 years, and at the end of it the borrower should usually be no older than 65 (salaried) or 70 (self-employed). Banks look at income stability, credit history (in the UAE, the AECB report) and a minimum salary that differs from bank to bank.
Documents
A passport; for residents, the visa and Emirates ID; a salary certificate or business income documents; six months of bank statements; and a credit report. Non-residents usually need statements and proof of income from their country of residence, sometimes a credit report from there too. After pre-approval the bank values the property and issues the final offer.
Every mortgage fee
Besides the down payment and the usual purchase costs (the 4% DLD fee and others), budget for: mortgage registration at the DLD — 0.25% of the loan plus an admin fee; the bank's arrangement fee (usually up to 1% of the loan); the property valuation (a few thousand AED); and life and property insurance. Under Central Bank rules the early repayment fee is capped at 1% of the outstanding balance, up to AED 10,000.
Fixed or variable rate
Banks offer a fixed rate for the first 1–5 years, after which it becomes variable and is linked to EIBOR, the UAE interbank rate. Compare not only the rate but also what it becomes after the fixed period, the fees and the early repayment terms.
Mortgages for off-plan
Banks lend cautiously on property under construction: the limit is usually up to 50%, and they more often finance close to handover, when the property is nearly ready. So plan an off-plan payment schedule so that you cover most of it before handover from your own funds and take the mortgage for the balance when you get the keys.
How PromptEstates helps
PromptEstates shows the full purchase cost including the down payment, fees and mortgage costs, so you know your budget in advance.
Frequently asked questions
Can a non-resident get a mortgage in the UAE?
Yes, but not from every bank and usually for 50–60% of the property's value.
What is the minimum down payment?
For a resident expat buying a first home up to AED 5 million — 20%; more for expensive homes, second homes and off-plan.
Can I get a Golden Visa if the home is mortgaged?
Yes, if the property is valued at AED 2 million or more and a UAE bank has issued a NOC.
How much does early repayment cost?
Under Central Bank rules — no more than 1% of the outstanding balance and no more than AED 10,000.
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