UAE Mortgage Affordability Calculator (LTV & DBR Caps)
The most a bank may lend you under the Central Bank’s LTV, debt burden and income caps.
UAE · home loans Central Bank loan-to-value, debt burden and income caps · Sources
The three caps
| Cap | Loan |
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Rules used and official sources
- Regulations Regarding Mortgage Loans (Central Bank of the UAE Rulebook)
- Mortgage regulations, Article 3: debt burden, loan-to-value, term and maximum financing (CBUAE Rulebook)
- Bank loans regulation, Article 7: all instalments within 50% of gross salary (CBUAE Rulebook)
- Mortgage regulations, Article 5: government housing programmes (CBUAE Rulebook)
Results are estimates for general information and planning, not financial advice. Banks and institutions may calculate differently (rounding, fees, rate changes). Confirm figures with your lender or a qualified adviser before deciding.
About the UAE Mortgage Affordability Calculator (LTV & DBR Caps)
In the UAE the Central Bank sets the most a bank may lend for a home (Regulations Regarding Mortgage Loans). Three caps apply, and the lowest one wins: a loan-to-value cap that depends on whether you are a UAE national or an expatriate, whether it is your first home and what it costs; a debt burden cap that keeps all your loan instalments within 50% of your gross income, with the new mortgage tested at a higher rate; and a maximum financing cap of 8 years’ income for UAE nationals and 7 for expatriates. The term is at most 25 years.
Enter the price, your income, your other loans and the rate you are offered: the calculator shows each cap, the maximum loan, the smallest down payment and the monthly instalment. Nothing you type leaves your browser.
How to use it
- Enter the property price; choose UAE national or expatriate and first home or second home; tick off-plan if the home is still being built.
- Enter your gross income a month (salary and regular income from a defined source), your instalments on other loans and your total credit card limits.
- Enter the interest rate your bank offers and the term, up to 25 years.
- Under Bank assumptions, choose the stress test (2 to 4 points) and the share of card limits counted; a UAE national with a guaranteed housing programme loan ticks that box.
- Read the maximum loan, the cap that sets it, the down payment and the instalment. Enter the down payment you have to check it and see the highest price it can buy; copy the summary.
Examples
The loan-to-value cap sets it: AED 1,600,000 (80%) · down payment AED 400,000 · about AED 8,893 a month
50% × 20,000 − 3,000 − 2,500 = AED 4,500 a month, tested at 5% + 3 points over 25 years
The debt burden cap sets it: about AED 583,040
At most 50%: AED 600,000, whoever buys it
A home of up to AED 1,500,000 if the income caps allow an AED 1,200,000 loan (before purchase fees)
Loan-to-value cap 85%: up to AED 3,400,000 if the income caps allow it
Loan-to-value caps
The Central Bank’s maximum loan-to-value ratios (mortgage regulations, Article 3):
- UAE nationals: a first home up to AED 5 million 85%, above AED 5 million 75%; a second home or investment property 65%.
- Expatriates: a first home below AED 5 million 80%, above it 70%; a second home or investment property 60%.
- Off-plan, for anyone: 50%.
Each borrower can claim only one property as a first home, and the down payment must come from your own money, not from a personal loan or a credit card.
The debt burden ratio
All instalments on all loans from banks and finance companies together, car and personal loans, overdrafts and credit cards included, must not exceed 50% of gross salary and regular income from a defined source (Article 7). For a mortgage, banks stress-test the new instalment 2 to 4 percentage points above its rate, depending on where rates are in the cycle, and use the rate that applies after any introductory rate.
The debt burden cap is the loan whose stress-tested instalment fits in what is left of the 50%: Loan = M × (1 − (1 + i)^−n) ÷ i, where M is the amount left each month, i the stress-tested rate ÷ 12 and n the number of months.
Maximum financing, term and housing programmes
Whatever the other caps allow, the loan cannot exceed 8 years of annual income for a UAE national or 7 years for an expatriate, and the term is at most 25 years; each bank sets the maximum age at the last instalment. A guaranteed loan to a UAE national for a home to live in under a local government housing programme may use a debt burden ratio of 60%, and 85% loan-to-value for a home worth up to AED 5 million (Article 5).
What else to budget for
The down payment is not the only cash you need. In Dubai the Land Department charges 4% of the price (shared equally with the seller unless you agree otherwise), with registration, title deed and mortgage registration fees on top: the Dubai Property Purchase Cost Calculator adds them up.
Limitations
- The caps are the Central Bank’s maximums: a bank may lend less, and each applies its own policy on income, employers and age.
- The regulations ask banks to include an amount for normal household spending in their debt burden assessment, and, when the term runs past your expected retirement age, to check that the balance left then can be repaid within 50% of your retirement income: either can make the bank’s figure lower than the debt burden cap here.
- Credit cards are counted at the share of the limit you choose; banks set their own figure.
- Instalments are worked out monthly on a reducing balance at one rate for the whole term; fixed and variable periods, and the profit rate of Islamic home finance, may differ.
- Rent, bonuses and allowances count only if you include them in your income; banks discount income that is not guaranteed.
- Bank fees, valuation and insurance are not included in the instalment.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
How much can I borrow for a home in the UAE?
The lowest of three caps: the loan-to-value cap for your case, the loan whose stress-tested instalment keeps all your instalments within 50% of your income, and 7 years of income (expatriates) or 8 years (UAE nationals). An expatriate buying a first home for AED 2,000,000 can borrow at most AED 1,600,000 (80%), if the income caps allow it.
What is the maximum loan-to-value for expats?
80% of a first home worth less than AED 5 million, 70% above that, and 60% for a second home or an investment property. Off-plan purchases are capped at 50% for everyone. The same Central Bank caps apply in every emirate.
What is the debt burden ratio?
Your monthly instalments on all loans and credit cards divided by your gross monthly income. It must not exceed 50%; for the new mortgage, banks use an instalment worked out 2 to 4 percentage points above its rate.
What is the minimum down payment?
The price less the maximum loan: 20% of an expatriate’s first home under AED 5 million and 15% of a UAE national’s, or more when the debt burden or income cap is lower. It must come from your own money, and the purchase fees come on top.
How expensive a home can my down payment buy?
Divide it by the share the bank may not lend: an expatriate’s first home under AED 5 million can be financed up to 80%, so AED 300,000 buys up to AED 1,500,000, if your income allows the AED 1,200,000 loan. Enter your down payment to see the figure for your case. Purchase fees come on top, so keep cash for them.
Can I get a mortgage on an off-plan property?
Yes, at most 50% of its value, whoever you are and whatever it is for.
What is the longest mortgage term in the UAE?
25 years. Each bank also sets the maximum age at the last instalment.
Is my information sent anywhere?
No. Everything is calculated in your browser; nothing you enter is uploaded or stored on a server.