UAE Mortgage Calculator

Besides wondering about how many Russians might be entering the country next month to buy property based on geopolitical events, most people who are buying property in the UAE generally concern themselves with two concepts: how much upfront cash is needed, and what the monthly payment is. A good mortgage calculator should be able to do both, while a person should also be paying close attention to variables such as valuation gaps, DLD fees, and bank charges. Below, we take you through everything you need to know about UAE mortgages and provide a UAE mortgage calculator.

Mortgage calculator UAE

Below is a simple calculator to help you calculate your total purchase price, down payment, and monthly payments on your property in the UAE.

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How do mortgages in the UAE work?

In general, most people in the UAE, in particular expats, will be looking at a conventional commercial mortgage, similar to what exists in Europe and North America. A standard UAE mortgage is similar to what you find in the UK: 25-year term, variable interest, and fixed for up to 5 years. There will also be various fees built into it, just like you find in countries where expats originate from. The bank will usually apply affordability limits and loan-to-value limits (LTV). For many expats buying their first completed property, the regulatory LTV cap is commonly described as up to 75% for properties valued at AED 5 million or less, and up to 65% above that threshold. Off-plan mortgages are often capped lower. There is another component to this for those who want to explore an Islamic mortgage, which, although it is rare for expats, is indeed a possibility should one choose to pursue it. Below is a snapshot of all that's involved in your typical mortgage in the UAE. What it usually looks like:

How much can you borrow on a mortgage in the UAE?

Non-resident buyers

Non-resident buyers face the tightest lending rules as the banks see them as a greater risk, and there are many banks that reduce exposure or avoid non-resident lending altogether. When financing is available, loan-to-value limits are usually lower, which is why models often show 35% -40% or sometimes even higher down payment options. This higher cash requirement is less about credit quality and more about risk management and regulatory exposure

UAE resident expats

Resident expats account for a large share of Dubai mortgage borrowers, and most calculators default to this profile. For a first completed property, financing is commonly capped at around 75% LTV, which results in a 25% down payment. Higher-priced properties often require more cash. This is why 25% is the most common assumption in UAE mortgages.

Emirati buyers (UAE nationals)

UAE nationals have it good when it comes to mortgages, and typically receive the most flexible terms, especially on first residential properties. Higher loan-to-value limits reduce the upfront cash needed and allow them to borrow a far greater amount than others.

How does the UAE mortgage process work?

Once approved, you repay monthly, and remember this comes with fees on top of your principal + interest, as well as variables caused by things like valuations that differ. For example, a buyer who agrees to pay AED 2.0M, assuming an AED 1.5M loan, may see that the loan drops to AED 1.425M if the bank values the property at AED 1.9M, creating a sudden AED 75,000 cash gap. Add Dubai transfer and mortgage fees of AED 120,000+, and the upfront cash required can be far higher than the original down payment, which is why you should be concerned with both. Below is a breakdown of how finances can change based on interest rates.

Islamic mortgages vs. commercial mortgages

Islamic mortgages also exist in Dubai, and although they are utilized primarily by native Emiratis, they are available to expats as well. So, unless you come from the Islamic world yourself, you might be wondering how Islamic mortgages differ from conventional mortgages you might see at home. A couple of points that need to be covered first. In Islamic finance, interest is avoided as a mechanism for payment, and instead, alternative structures like Murabaha (cost-plus sale) or Ijara (lease-to-own) are used. In practical terms, you’ll still compare a monthly payment, total cost, and the fees/terms, but the contract structure and compliance differ.

Can expats get Islamic mortgages, and are they a benefit?

Yes, expats can access Islamic home finance in the UAE, but if overall cost is your concern, then there usually isn't much benefit. Almost all expats will opt for a 25-year commercial mortgage as opposed to an Islamic one.

Example: A Dubai property purchase (Dubai Marina )

Let's create a real example based on an asset that many of our clients hold, an apartment in Dubai Marina. Assume an expat is purchasing a completed apartment in Dubai Marina priced at AED 2,000,000. With a 25% down payment (AED 500,000), the resulting loan amount is AED 1,500,000. Using a simplified model with a 25-year term at a 5.25% interest rate, the figures below illustrate what the monthly payment and total cost could look like in practice.

Upfront cost breakdown (Dubai-style fees)

This is where buyers get surprised. The down payment is only the beginning. Below is a practical fee model using commonly referenced Dubai charges (DLD + mortgage registration, and typical transaction fees).

This dataset breaks down the upfront cash required for the Dubai Marina example, separating the down payment from common transaction and mortgage-related fees. Viewing these components side by side makes it easier to understand where the cash is actually going at closing, instead of just assuming it's a vortex where there is an unclear use for the money.

How do mortgages in Dubai work?

The most popular place to invest in the UAE is Dubai. The Dubai flow usually looks like this: agree on price → bank valuation → final loan offer → pay transfer/mortgage registration fees → title transfer through trustee → mortgage registered.

A simple “buyer timeline” to plan around

Are mortgages in Dubai different from those in other Emirate States?

Dubai mortgages aren’t fundamentally different from those in other emirates, and the same core rules apply. Loan-to-value limits, affordability checks, and bank valuations work in broadly the same way across the UAE. Where Dubai stands apart is the execution of the mortgage process. Transaction volumes are higher, valuations are more standardized, and the transfer process is highly structured through DLD trustees and registrations. In other emirates, the fee mix and transfer steps can look different, but the rule stays the same everywhere: model the monthly payment and the full cash needed to close, or the numbers won’t hold up.

Valuations in the UAE and Dubai.

Sometimes valuations do not match the transaction price of the property; i.e., the third-party valuer will "downvalue" the property, which means the value will come in lower than the transaction price. In this case, the buyer will need to come up with more cash for a downpayment. It's important to note here that it isn't unusual; many times, valuers will downvalue property to hedge against risk, rather than dictate what the actual market price of the property is.

Valuation gap example (same Dubai Marina purchase)

Mortgages in the UAE

The Dubai market is primarily about capital appreciation, and there is nothing better to achieve the highest ROI possible on real estate than using leverage in the form of a mortgage. Using leverage the right way in a market with future growth potential can 3x or 4x an ROI on your capital deployed, depending on how you structure the mortgage. And although an Islamic mortgage is available for expats, if the numbers are the most important part of your property investment, then you are probably going to opt for a standard commercial mortgage. Be aware of the fees, the possibility of a downvaluation, and have a defined exit strategy. Pay attention to the details, and your Dubai property could be one of the smartest purchases you've ever made.

FAQ

Can I get a mortgage in the UAE before I find a property?

Yes. Many buyers start with a mortgage pre-approval, which gives them an estimated borrowing limit based on income, liabilities, and credit profile. While final approval still depends on the property valuation, pre-approval helps you shortlist properties within a realistic price range and move faster once you find the right unit.

Are upfront fees the same across all emirates?

No. While the core mortgage structure is similar across the UAE, upfront fees vary by emirate and transaction type. Dubai, for example, has well-defined DLD transfer and mortgage registration fees, while other emirates may use different registration authorities and fee schedules. Always confirm local fees before finalising your cash budget.

About Benjamin LockeOriginally from the US, Benjamin spent 15 years in Asia heavily involved in the global real estate industry. Today, he develops content for businesses and major financial publications around the world about global real estate and finance, including The Motley Fool, SuperMoney, and other online and offline publications.