UAE Mortgages: The Real Deal

The UAE property market is on fire. Everyone's buying — expats, locals, investors — and prices keep climbing. Unless you're sitting on a pile of cash, you'll need a mortgage.

Here's what you actually need to know, minus the fluff.

How Much Will Banks Lend You?

Loan-to-value (LTV) ratios cap how much you can borrow. It's based on property value and whether this is your first rodeo.

Property under AED 5M:

• 80% for the first mortgage
• 65% for the second mortgage and more

Property over AED 5M:

• First mortgage: 70%
• Second mortgage: 65%

Expats and non-residents:

• 50% max, no exceptions.

Off-plan projects:

• Many banks wait until construction hits 50% before lending anything. When they do, it's capped at 50% LTV.

Boost your chances:

• Apply jointly with a spouse, sibling, or business partner.

Paperwork You Can't Skip

Employed:

• Application forms and authorization letters
• Passport, visa, Emirates ID
• 3 months of bank statements
• Salary certificate

For the self-employed:

• Same forms plus business license
• Chamber of commerce registration
• 12 months of personal and company bank statements

Expats:

• Passport copy
• UAE residency and address proof
• Financial docs: salary proof, bank statements, tax returns

Mortgage Rates Explained

Two types. Both matter.

Fixed rate
Locked for 1-3 years. Predictable but usually higher.

Variable rate
Base rate + EIBOR (set by UAE Central Bank)

The base rate is where banks compete. EIBOR is the same everywhere. Your job: get the lowest base rate possible. That's what determines your real cost over 25 years.

Don't get seduced by a low first-year teaser rate if the long-term rate is garbage.

What Else You're Paying

• Processing fee: ~1% of loan (negotiate this)
• Valuation: AED 2,500–3,000
• Insurance: Mandatory, varies by property
• Registration: 4% of property value + AED 580

These add up fast. Budget for them upfront.

Mistakes People Make

Not getting pre-approved
Pre-approval is valid 30-90 days and gives you leverage when negotiating. Sellers take you seriously. You move faster.

Inflating the purchase price
Some brokers suggest this to game the LTV. Don't. It's illegal, banks catch it during valuation, and you'll tank your application.

Taking the first offer
Bank A might offer 3.5% base rate. Bank B offers 2.99%. Over 25 years, that's tens of thousands of dirhams.

Ignoring fine print
Early repayment penalties, rate adjustment clauses, and hidden fees will bite you later if you don't read the contract.

Why Use Tanami Properties:

Banks show you their products. We show you the market.

We compare rates from every major lender, negotiate better terms, handle documentation, and push approvals through. You save money and time.

One advisor. One process. No runaround.

Want to see what you qualify for? Drop us a message and we'll run the numbers.