Residential Mortgages in Dubai: Guide for Expats and Investors

Residential mortgages in Dubai have become increasingly accessible for both residents and non-residents, thanks to the UAE’s mature lending environment and streamlined regulations. Whether you're buying your first home, financing a luxury villa, or investing in a buy-to-let property, understanding the process is key to making informed decisions.

In this guide, we’ll break down everything you need to know: eligibility, rates, documentation, loan types, fees, and the step-by-step process of securing residential mortgages in Dubai. Plus, you can use my free mortgage calculator to estimate your monthly payments instantly.

Why Choose a Mortgage in Dubai?

Buying a home or investment property in Dubai using mortgage finance is now easier than ever. With growing international demand and a stable financial system, the mortgage market has expanded with options for UAE residents, expats, and even overseas investors.

Benefits of taking a mortgage in Dubai:

✔ Preserve cash flow by spreading payments

✔ Access historically low interest rates

✔ Leverage real estate assets for better ROI

✔ Unlock long-term capital appreciation opportunities

✔ Own freehold property with full legal title as a foreigner

Should You Use a Broker or Go Direct to a Bank?

One of the most common questions I get is: “Should I just go to my bank?”

In most cases, the answer is no.

Going directly to your bank limits you to their in-house mortgage products—meaning you could miss out on more competitive rates, better terms, or more flexible eligibility requirements available elsewhere.

As a mortgage CMAP Certified Mortgage Advisor, I work with a number of specialist brokers and over 30 UAE and international banks to source the most suitable product for your profile—based on your income, property type, residency status, and long-term plans.

Working with a broker gives you:

• Access to a wider range of mortgage products

• Support structuring your income to meet bank criteria

• Lower arrangement fees through exclusive tie-ups

• Faster approvals and smoother coordination

• Ongoing support after the loan is disbursed

What Types of Residential Mortgages Are Available?

Whether you're an end-user or investor, Dubai offers several types of residential mortgage loans:

Primary Residence Mortgages

For those purchasing a home to live in—villa, apartment, or townhouse. Available to both residents and non-residents.

• Max LTV: 80% for UAE residents (properties under AED 5M)

• Fixed or variable rates

• Up to 25-year terms

Buy-to-Let (BTL) Mortgages

Ideal for investors purchasing income-generating residential property.

• Rental income considered in affordability

• Can be held personally or through a company

• Non-residents eligible (lower LTV applies)

• Great way to leverage real estate for yield and capital growth

Current Interest Rates in Dubai

As of 2025, interest rates in the UAE are gradually stabilizing after previous hikes. Here are the prevailing averages:

Type	Resident	Non-Resident
Fixed Rate (1–5 yrs)	From 3.99%	From 4.49%
Variable (EIBOR + margin)	0.75% – 1.25% margin	1.25% – 1.75% margin

Use my free calculator to estimate your monthly repayments using the latest rates.

Understanding Loan-to-Value (LTV) Limits

Loan-to-Value (LTV) ratios are regulated by the UAE Central Bank and determine how much you can borrow relative to the property value.

For UAE Residents:

• Up to 80% LTV for properties below AED 5 million

• 70% LTV for properties above AED 5 million

• 85% LTV for Emiratis (on first home)

For Non-Residents:

• Typically limited to 50–60% LTV

• Some banks may offer higher with strong financial profiles

Example:For a AED 1.5M apartment, a resident buyer could borrow up to AED 1.2M with 80% LTV. The rest (AED 300K) must be paid as down payment.

Key Eligibility & Affordability Criteria

Each lender has its own affordability matrix, but general guidelines apply:

For Salaried Individuals:

• Minimum monthly salary: AED 15,000

• Employment history: Min. 6 months in current role

• Required documents: Salary certificate, payslips, 6-month bank statements

For Self-Employed:

• Business operating for 2+ years

• Trade license, MOA, and company bank statements

• Financial statements or tax returns may be required

For Non-Residents:

• Passport copy

• Proof of income (employment letter, tax return, or rental income)

• 6–12 months of personal bank statements

• International credit report (if available)

The bank will also calculate your Debt Burden Ratio (DBR)—total monthly debt obligations (including proposed mortgage) must not exceed 50% of your monthly income.

Step-by-Step: How to Secure a Residential Mortgage in Dubai

Here’s how the process typically works when working with me as your advisor:

1. Initial Consultation & Pre-Assessment

We evaluate your goals, budget, income, and residency status. I’ll recommend the best-fit lenders and outline costs and timelines.

2. Mortgage Pre-Approval

Once the documents are ready, we apply for pre-approval. This takes 3–5 business days and confirms your borrowing capacity.

3. Property Selection & Valuation

Once you choose your property, the lender will arrange a valuation to confirm the market value and LTV.

4. Final Approval & Offer Letter

Upon successful valuation, the bank issues the official mortgage offer letter detailing all terms.

5. Sign-Off, Mortgage Registration & Transfer

You sign the offer, the mortgage is registered with the Dubai Land Department, and the bank disburses the funds to the seller or developer.

Associated Costs & Fees

When budgeting for your purchase, keep in mind the following costs:

Cost Type	Amount
DLD Fee	4% of purchase price
Mortgage Registration	0.25% of loan amount + AED 290
Valuation Fee	AED 2,500 – AED 3,500
Bank Arrangement Fee	0.5% – 1% of loan amount
Life & Property Insurance	Varies by provider
Broker/Advisor Fee	Often waived or bundled in deal

What About Equity Release?

If you already own a residential property in Dubai, you may be eligible for equity release—unlocking cash tied up in your asset.

Equity Release Basics:

• Available to both residents and non-residents

• Up to 70% of the current property value can be released

• Funds can be used for renovations, investments, or buying another property

• Requires updated valuation and standard eligibility assessment

Restrictions:

• Not available on off-plan or under-construction units

• Some banks require you to hold the title for 6–12 months before applying

• Rental income can sometimes be used to boost eligibility

Buy-to-Let (BTL) Mortgages in Dubai

BTL mortgages are growing in popularity, particularly among investors who want to generate rental income from Dubai’s booming property market.

Key Features:

• Rental income considered in affordability

• Same process as residential loans

• Often requires a higher down payment (especially for non-residents)

• Some banks offer interest-only periods for BTL properties

Rental yields in Dubai typically range from 6% to 8%, depending on location and unit type—making it one of the most attractive cities for property investment globally.

Ready to Take the Next Step?

Whether you’re buying your first home, refinancing, or expanding your portfolio, navigating residential mortgages in Dubai can be simple—with the right advice.

I’ve spent over 18 years helping clients secure the most competitive mortgage deals, and I’m here to help you do the same.

Try My Mortgage Calculator

📞 Or reach out directly for a free consultation.

Stephen James Mitchell

CMAP Certified Property Investment Strategist

📞 +971 50 225 7322