Dubai’s real estate market is one of the most attractive in the world, offering high rental yields, world-class infrastructure, and strong long-term appreciation. While many investors buy property outright, an increasing number of both residents and expatriates are opting to finance their purchase through mortgages. Understanding how mortgages work in Dubai is essential for making informed property investment decisions.

Who Can Get a Mortgage in Dubai?

Both UAE residents and non-resident expatriates are eligible for mortgages in Dubai, though the terms and conditions vary. UAE nationals often enjoy more favorable rates and higher borrowing limits, while expats and non-residents may face stricter criteria. Banks and financial institutions assess eligibility based on factors such as income, employment stability, age, and credit history.

Down Payment Requirements

The minimum down payment is determined by the UAE Central Bank regulations:

  • First-time buyers (residents): 20% of the property price (for properties below AED 5 million).
  • Expats: 25% down payment on properties under AED 5 million.
  • Properties above AED 5 million: Down payment requirement rises to 30%.
  • Off-plan properties: Typically require higher upfront payments, depending on the developer and bank.

These down payments are exclusive of other costs such as DLD fees, service charges, and registration fees.

Types of Mortgages Available

Fixed-Rate Mortgages

The interest rate is locked in for a set period (usually 1–5 years), ensuring predictable monthly payments. This is popular among first-time buyers who prefer stability.

Variable-Rate Mortgages

Here, the interest rate fluctuates based on the Emirates Interbank Offered Rate (EIBOR). While potentially cheaper in the short term, monthly payments can vary.

Offset Mortgages

A less common option, where savings and current accounts are linked to the mortgage. The balance in these accounts helps reduce the interest payable on the mortgage.

Islamic Mortgages

Based on Sharia-compliant financing, banks purchase the property on behalf of the buyer and lease it back under a profit-sharing agreement. This is a popular option for both Muslims and expats seeking alternatives to conventional interest-based mortgages.

Loan-to-Value (LTV) Ratios

For most residents, the maximum LTV is:

  • 80% for properties under AED 5 million.
  • 70% for properties over AED 5 million.

For expatriates and non-residents, LTVs are generally slightly lower.

Mortgage Tenure

Mortgage tenures in Dubai typically range from 5 to 25 years, depending on the borrower’s age and repayment capacity. The Central Bank requires mortgages to be repaid before the borrower turns 65 (expats) or 70 (UAE nationals).

Why Financing Makes Sense

Financing a property allows investors to leverage their capital while enjoying Dubai’s strong rental yields, which average 6–8% annually. For residents, it enables homeownership without tying up large amounts of capital, while expats and international investors benefit from easier entry into Dubai’s lucrative market.

Financing a property in Dubai is a well-regulated process, open to both residents and expatriates. With flexible mortgage options ranging from fixed and variable rates to Islamic financing, buyers can find solutions tailored to their needs. By understanding eligibility requirements, down payment obligations, and loan structures, investors can make smarter decisions and maximize returns in one of the world’s most exciting real estate markets.