Getting a mortgage in Abu Dhabi

Loan-to-value limits

Loan-to-value, or LTV, is the share of the price the bank will lend. The rest is your down payment. Current guides report these caps for expatriate residents.

• First property up to AED 5,000,000: up to 80 percent, so a 20 percent down payment.
• First property above AED 5,000,000: a lower cap. Sources give different figures, so check the current figure with us.
• Second or investment property: lower again. Guides mostly report 60 percent for expatriates. Check the current figure with us.
• Off-plan: widely reported as 50 percent of the price for all buyers, paid as the build progresses.

Non-residents

Non-residents can borrow from some UAE banks, but usually on stricter terms: a lower LTV, more documents and a longer approval. Limits vary by bank and by your country of residence.

If you live abroad, tell us at the start. We would rather you know the real down payment before you view than after you have chosen a flat.

Term, age and debt burden

The maximum mortgage term is reported as 25 years. Age limits apply to the end of the loan: 65 for expatriates and 70 for UAE nationals, per the original Central Bank rules. A 50 year old expatriate therefore has about 15 years, not 25.

The debt burden ratio caps your total monthly debt payments, including the new mortgage, credit cards and car loans, at 50 percent of monthly income.

Pre-approval first

A pre-approval tells you how much a bank is willing to lend before you make an offer. It does not commit you or the bank, and it is time limited. Ask for it before you start viewings, because sellers take offers with a pre-approval more seriously.

Typical documents for a salaried borrower are a passport, Emirates ID, recent salary certificate or payslips, and bank statements. Self-employed borrowers and non-residents are asked for more. Each bank's list is different, so ask for it in writing.

We can talk you through the process and the paperwork before you approach a bank.

Use the calculator carefully

The mortgage calculator on our site gives an estimate of monthly payments from a price, down payment, rate and term. It is not a bank offer and it is not financial advice.

Interest rates move, and banks add fees and insurance. Use the estimate to compare scenarios, then get a written offer from a bank before you rely on any figure.

Before you rely on this

Central Bank limits and bank policy change. The off-plan, second property, over AED 5,000,000 and non-resident figures are the ones that most often differ between sources. For any of them, check the current figure with us and with the bank before you plan a purchase around it.

The arithmetic, by hand

Two quick sums show how the limits work. They use round numbers and the reported 80 percent cap, so they illustrate the method and do not predict your own offer.

• On a AED 1,500,000 first property at 80 percent, the loan is AED 1,200,000 and your down payment is AED 300,000, before fees.
• If your monthly income is AED 30,000, a 50 percent debt burden cap means total monthly debt payments of at most AED 15,000, including the new mortgage.

Questions for any lender

Ask each bank the same questions so you can compare like with like. Write the answers down.

• What is the maximum loan for my status and this property?
• Which fees do you charge, and which are refundable?
• Is the rate fixed, and for how long?
• What does early settlement cost?
• Which insurance do you require, and can I choose the provider?

Common reasons for refusal

Banks decline most often for a short employment history, a high debt burden, a weak credit record, or a valuation below the price. A low valuation means the bank lends on its own figure, so you cover the gap in cash. Ask the bank how it values before you commit to a price, and keep your documents consistent: the same name spelling, the same employer, the same income figures everywhere.