If you’re thinking about buying in 2025, the market is well established, but the process can be confusing if you’re not familiar with the local rules. Dubai’s mortgage system is different from the UK or US, with Central Bank limits, higher upfront fees, and specific paperwork.
This guide will walk you through how to get a mortgage in Dubai today.
First: Can you actually own property here?
Yes, you can, but location is important. Since 2002, foreigners have been allowed to buy Freehold property. This means you own both the home and the land, just like you would in your home country.
However, this only applies to certain freehold zones. Fortunately, these include popular areas such as Dubai Marina, Downtown Dubai, The Palm, Dubai Hills, and Jumeirah Village Circle (JVC). Outside these zones, properties are usually Leasehold (99-year leases), which most expats avoid.
The Money Part: Deposits and LTV
For most first-time buyers, the hardest part is saving enough for a down payment.
The UAE Central Bank has strict rules on Loan-to-Value (LTV) ratios to maintain market stability. You can’t buy with just 5% down like you might in other countries.
If you’re an expat buying your first home (under AED 5 million):
- The Bank covers: 80%
- You pay: 20%
If the property is over AED 5 million, you’ll need a 30% down payment. For a second home or investment property, you’ll need to put down 40% in cash.
If you’re buying an off-plan property (one that isn’t built yet), banks will only lend up to 50%. That’s why most buyers use developer payment plans for these purchases instead of mortgage companies in Dubai.
The Hidden Costs (and Sticker Shock)
This is where many people are caught off guard. You save your 20% deposit and think you’re set, but there’s more to pay.
To actually get the keys, you’ll need to pay closer to 26-27% of the property’s value in cash. Here’s why:
DLD Fee: The Dubai Land Department charges 4% of the purchase price right away. This fee is non-negotiable.
Agency Fee: The real estate agent charges 2% plus VAT.
Trustee & Registration Fees: Expect to pay about AED 4,000 to 5,000 to the trustee office, plus mortgage registration fees of 0.25% of the loan amount and AED 290.
For an AED 2 million apartment, your 20% deposit is AED 400,000. But you’ll also need at least AED 130,000 more for fees. Make sure you’re prepared for these extra costs.
Getting the Loan: Rates and Rules
As of late 2025, mortgage rates are between 3.89% and 4.99%.
- Fixed Rates: Most buyers choose a fixed rate for 3 to 5 years for peace of mind.
- Variable Rates: These are linked to EIBOR. They can be risky if rates rise, but may be cheaper at first.
- Salary Transfer: If you have your salary paid into the same bank as your mortgage, you’ll usually get a lower interest rate.
The “Can I Afford It?” Rule (DBR)
Banks look at your Debt Burden Ratio (DBR). Your total monthly debt payments, including car loans, credit cards, and your mortgage, can’t be more than 50% of your monthly salary.
Pro Tip: If you have a maxed-out credit card, pay it off before you apply. Even an unused card with a high limit can count against you in the bank’s system.
You’ll hear these terms used all the time.
- Conventional: This is a standard loan. You borrow money and pay it back with interest.
- Islamic (Sharia-compliant): Interest is not allowed. Instead, the bank buys the property and leases it back to you (Ijara), or sells it to you at a profit, with the profit paid over time (Murabaha).
Does it matter for non-Muslims? Not really. The rates are usually similar. However, Islamic mortgages can have different penalties for early repayment. Many non-Muslim expats choose Islamic mortgages if the profit rate is lower than the interest rate. Don’t rule them out.
“I’m Self-Employed…” (The Entrepreneur’s Struggle)
If you have a regular salary, banks are happy to work with you. If you run your own business, the process is more complicated.
Dubai has many entrepreneurs, but banks see them as higher risk. Salaried employees need to show 3 to 6 months of bank statements, but self-employed applicants usually need:
- 2 full years of audited company financials.
- 6–12 months of company bank statements.
- Proof that the business is profitable.
Some banks are starting to relax these rules for freelancers or solo business owners with steady income. But if you started your business only six months ago, getting a mortgage will be difficult.
Pro Tip: If you pay yourself a fixed salary from your own company, some banks may treat you as a salaried employee. Most will still check your company’s finances to make sure your salary is steady.
The “Boring” But Mandatory Extra: Life Insurance
Here’s a monthly cost many people forget. In Dubai, life insurance is required to get a mortgage. The bank wants to be sure the loan will be paid off if you pass away.
- Bank Policy: The bank will offer its own insurance. It’s convenient, but often more expensive.
- External Policy: You can usually use a life insurance policy from your home country or an international broker for the mortgage. This is often about 50% cheaper.
- Property Insurance: You’ll also need building insurance, which covers the structure. This is usually inexpensive, around AED 1,000 a year for an apartment.
The Process: A Quick Step-by-Step Guide
Get Pre-Approved First: Don’t start house hunting yet. Visit a broker or bank to get a pre-approval certificate. It’s valid for 60 days and shows sellers you’re serious.
The Hunt: Find a RERA-registered agent. There are many aggressive agents in the market, so choose someone who listens to your needs.
Form F: This is your contract. You sign it with the seller and provide a 10% security cheque, which the agent holds and usually does not cash.
The Valuation: The bank will send an assessor to determine the property’s value. Note: If the bank values the house lower than your agreed price, they will only lend based on their own valuation. You’ll have to pay the difference in cash.
The Transfer: Everyone meets at the Trustee Office. Cheques are exchanged, IDs are checked, and you leave with your Title Deed.
The “Paperwork Mountain” Checklist
To save time, prepare a folder with all your documents on your computer before contacting a broker. If you send documents one at a time, the bank may pause your application.
The Essentials
- Passport copy (valid for at least 6 months).
- Residence Visa copy.
- Emirates ID copy (front and back).
- Salary Certificate (addressed to the bank).
- Pay slips (last 6 months).
- Personal Bank Statements (last 6 months – showing salary credits).
- For Self-Employed: Trade License, Audited Financials (2 years), Company Bank Statements.
- Credit Report (Al Etihad Credit Bureau; you can download it via their app).
A Few Insider Tips: Dos and Don’ts
- Don’t take a personal loan for your deposit. The Central Bank checks your credit report, and if they see you took out a large loan just before applying for a mortgage, they’ll likely reject you. The deposit must come from your own savings.
- Do protect your currency. If you’re paid in GBP or EUR, note that the Dirham is linked to the US dollar. If your home currency drops, your Dubai mortgage will become more expensive.
- Do consider the Golden Visa. If your property is worth over AED 2 million, you can get a 10-year renewable visa, so you’re no longer tied to your employer for residency. Even a property valued at AED 750,000 gets you a 2-year visa.
Quick-Fire FAQs for Skimmers
Can I get a mortgage if I don’t live in Dubai?
Yes. Non-resident mortgages are available, but the LTV is lower. Expect to pay a 40% to 50% deposit and slightly higher interest rates. Banks see you as higher risk if you don’t have a residence visa.
Is there a penalty if I pay off the mortgage early?
Yes. The Central Bank limits early settlement fees to 1% of the outstanding amount or AED 10,000, whichever is lower. This is much more consumer-friendly than before.
Can I add my buying costs to the mortgage?
Generally, no. You can’t finance the 4% DLD fee or agency fees. These must be paid in cash or by cheque. Some banks may offer a separate personal loan, but that affects your affordability ratio.
How long does the whole process take?
Ideally, 3–4 weeks. In reality, allow about 6 weeks from signing the contract to getting the keys. Delays can happen at the trustee’s office or when developers issue NOCs (No Objection Certificates).
My Final Thoughts on Mortgage in Dubai
Buying in Dubai moves quickly. Once you’re pre-approved, a deal can close in 3–4 weeks. It’s an intense process, but with rising rents, locking in your housing costs is a smart move for long-term expats.
Just make sure you have an extra 6-7% in cash for the fees. Trust me.
