Dubai Mortgage Calculator 2026: Monthly Payments, LTV and Upfront Costs
Short answer: This Dubai mortgage calculator shows that on a AED 3 million Dubai home with a 20% deposit, a 25-year mortgage at 4% costs about AED 12,670 a month. The UAE Central Bank caps loans for resident expats at 80% of the price for a first home up to AED 5 million and 65% above that; UAE nationals can borrow 85% and 70%; second homes are capped at 60% to 65% and off-plan property at 50%. The maximum term is 25 years, and total monthly debt repayments cannot exceed 50% of income. On top of the deposit, budget roughly 7.5% of the price for DLD, agency and bank fees. Use the calculator below to run your own numbers.
Key takeaways
- Expats need at least 20% down on a first home up to AED 5 million, and 35% above it. UAE nationals need 15% and 30%.
- Off-plan purchases are capped at 50% LTV, so most off-plan buyers use the developer's payment plan and take a mortgage only at or after handover.
- Your payments are capped at 50% of your income across all loans, which usually limits borrowing before the LTV does.
- Cash needed is the deposit plus about 7.5%: a 20% deposit on AED 3 million means about AED 825,000 in the bank, not AED 600,000.
- Early settlement is capped at 1% of the outstanding balance or AED 10,000, whichever is lower.
Dubai mortgage calculator
Enter the price, your status and the loan terms. The calculator applies the UAE Central Bank's loan-to-value caps automatically, adds the Dubai Land Department and bank fees, and shows the cash you need on transfer day.
The default interest rate of 4.0% reflects the market in September 2026, when broker data showed the best fixed rates at roughly 3.75% for one year, 3.95% for three years and 4.19% for five years, with variable rates priced from about 3-month EIBOR + 0.7%. Your own rate depends on the bank, your salary, the loan size and whether you are salaried or self-employed, so ask at least three banks or use a broker.
How much can you borrow? UAE mortgage LTV limits in 2026
The UAE Central Bank sets the maximum loan-to-value (LTV) ratio in its mortgage loan regulations. The caps depend on whether you are a UAE national or an expat, whether it is your first home, and the property's price.
| Buyer and property | Maximum LTV | Minimum deposit |
|---|---|---|
| Expat, first home, up to AED 5M | 80% | 20% |
| Expat, first home, above AED 5M | 65% | 35% |
| UAE national, first home, up to AED 5M | 85% | 15% |
| UAE national, first home, above AED 5M | 70% | 30% |
| Expat, second or investment home | 60% | 40% |
| UAE national, second or investment home | 65% | 35% |
| Off-plan property (any buyer) | 50% | 50% |
| Non-resident (bank policy, typical) | 50% to 60% | 40% to 50% |
UAE Central Bank LTV caps for residential mortgages. Non-resident limits are set by individual banks, not by the Central Bank.
The AED 5 million threshold creates a cliff. An expat buying at AED 5 million needs AED 1 million down; at AED 5.1 million, the minimum jumps to AED 1.785 million. If you are shopping close to that line, the deposit, not the price, is often what decides the purchase. For what villas actually cost either side of it, see Dubai villa prices 2026 and 4-bedroom villas in Dubai.
Non-residents can borrow in Dubai, but on tighter terms and from fewer banks; expect a lower LTV, more documentation and sometimes a higher rate.
Tenor, age and the 50% debt burden rule
The LTV caps how much the property can support. Three other rules cap how much you can support.
- Maximum term: 25 years. A shorter term means higher payments but far less interest: at 4% on AED 2.4 million, 25 years costs about AED 1.40 million in interest, 15 years about AED 0.80 million.
- Age at maturity. Banks set their own limits, typically 65 for salaried expats and up to 70 for UAE nationals or the self-employed, so a 45-year-old expat is usually limited to a 20-year term.
- Debt burden ratio: 50%. All monthly debt repayments, including car loans and the minimum payment on credit card limits, cannot exceed 50% of monthly income. If the loan runs past retirement age, the test is applied to post-retirement income.
The debt burden rule is why the calculator shows a minimum monthly income. It is simply twice the mortgage payment, assuming no other loans. In practice, unused credit card limits count against you, so cancelling cards you do not use before you apply can raise the amount a bank will lend.
What the monthly payment looks like at different prices
For a quick sense of scale, here are monthly payments for a resident expat buying a first home, with the minimum deposit, over 25 years.
| Price | Deposit | Loan | Monthly at 3.75% | Monthly at 4.25% | Monthly at 4.75% |
|---|---|---|---|---|---|
| AED 1,500,000 | AED 300,000 | AED 1,200,000 | AED 6,170 | AED 6,500 | AED 6,840 |
| AED 3,000,000 | AED 600,000 | AED 2,400,000 | AED 12,340 | AED 13,000 | AED 13,680 |
| AED 5,000,000 | AED 1,000,000 | AED 4,000,000 | AED 20,570 | AED 21,670 | AED 22,800 |
| AED 8,000,000 | AED 2,800,000 | AED 5,200,000 | AED 26,730 | AED 28,170 | AED 29,650 |
Principal and interest only, 25-year term, resident expat first home. The AED 8M row reflects the 65% LTV cap above AED 5M. Figures rounded to the nearest AED 10.
Each 0.5 percentage point on the rate moves the payment by roughly 5% at these terms. That is why a fixed rate matters more when rates are volatile, and why the difference between a bank's headline rate and the follow-on rate after the fixed period is the number to read most carefully.
Upfront costs: the cash you need on transfer day
The most common mortgage mistake in Dubai is saving for the deposit and forgetting the fees. On a financed purchase they are due on the same day, at the trustee office.
| Cost | Rate | On AED 3M with a AED 2.4M loan |
|---|---|---|
| Deposit (20%) | Price minus loan | AED 600,000 |
| DLD transfer fee | 4% of price | AED 120,000 |
| DLD fixed fees | Deed, unit, map, knowledge, innovation | AED 745 |
| Sale trustee fee | AED 4,000 + VAT | AED 4,200 |
| Agency commission | 2% + VAT | AED 63,000 |
| Mortgage registration | 0.25% of loan + AED 270 | AED 6,270 |
| Mortgage trustee fee | AED 4,000 + VAT | AED 4,200 |
| Bank arrangement fee | Up to 1% of loan | AED 24,000 |
| Valuation | Typical | AED 3,000 |
| Total cash needed | AED 825,415 |
Indicative costs for a ready property bought through an agent. DLD figures from the Dubai Land Department fee schedules.
Every DLD line in that table is explained in our guide to DLD fees in Dubai. There are recurring costs too: mortgage life insurance and property insurance, which banks require, and annual service charges; a family's full running budget is in the cost of living in Dubai.
Mortgages on off-plan property
Off-plan property is capped at 50% LTV, and most banks will only lend on off-plan projects they have approved. As a result, most off-plan buyers in Dubai do not take a mortgage at the start at all. They pay the developer's instalments during construction, often 40% to 60% of the price, and take a mortgage for the balance at handover, when the property is ready and the normal LTV rules apply.
That changes the cash-flow arithmetic completely: you need the deposit and instalments over two to four years, rather than a lump sum on day one. Post-handover payment plans stretch it further. We model the difference in post-handover payment plans in Dubai, and compare the two routes in off-plan vs ready property.
If you are buying a villa off-plan in a boutique community such as Selora Residences in District 11, MBR City, check early which banks have approved the project, because it determines who can refinance you at handover.
Fixed vs variable rates, and the fees to check
Dubai mortgages are priced either as a fixed rate for an initial period of one to five years, after which the loan reverts to a variable rate, or as a variable rate linked to EIBOR, the Emirates Interbank Offered Rate, plus a margin.
- Fixed gives payment certainty for the fixed period. Check the follow-on rate; that is what you pay for the remaining 20 years.
- Variable (3-month EIBOR + margin) moves with rates. Look for a floor rate, which stops the rate falling below a set level even if EIBOR does.
- Early settlement fee: capped at 1% of the outstanding balance or AED 10,000, whichever is lower, which makes refinancing or selling early relatively cheap in Dubai.
- Arrangement fee: typically up to 1% of the loan; some banks waive it in exchange for a slightly higher rate.
If you are buying from abroad, the structure of the loan matters as much as the rate, particularly for tax at home. We cover country-specific issues for UK buyers, US buyers and European buyers.
Frequently asked questions
How much deposit do I need for a mortgage in Dubai?
A resident expat needs at least 20% for a first home up to AED 5 million and 35% above that. UAE nationals need 15% and 30%. Second homes need 35% to 40%, and off-plan property needs 50%. Budget about 7.5% of the price for fees on top.
What is the maximum mortgage term in the UAE?
25 years. Banks also set a maximum age at the end of the loan, typically 65 for salaried expats and up to 70 for UAE nationals or self-employed borrowers.
What is the monthly payment on a AED 2 million mortgage in Dubai?
About AED 10,560 a month over 25 years at 4%, or about AED 14,790 over 15 years.
Can non-residents get a mortgage in Dubai?
Yes, from a smaller number of banks and usually at a lower LTV, commonly 50% to 60%, with more documentation. The limit is set by each bank's policy rather than the Central Bank's resident caps.
What is the debt burden ratio in the UAE?
Total monthly debt repayments, including the mortgage, car loans and credit card commitments, cannot exceed 50% of monthly income under UAE Central Bank rules.
Can I get a mortgage on off-plan property in Dubai?
Yes, but it is capped at 50% of the price and only on projects the bank has approved. Most off-plan buyers pay the developer's instalments during construction and take a mortgage at handover instead.
What is the early settlement fee on a Dubai mortgage?
It is capped at 1% of the outstanding loan or AED 10,000, whichever is lower.
Sources & further reading: UAE Central Bank: Mortgage loan regulations · DLD: Mortgage registration · DLD: Property sale registration · UAE Central Bank
Written by Faizan Ahmed, Digital & SEO Lead, Swank Development. Last updated 23 September 2026. Figures are indicative and were verified against official UAE government sources at the time of writing; always confirm current fees with the Dubai Land Department or your conveyancer.
