UAE Central Bank Mortgage Rules 2025 – LTV, DBR, and Home Loan Guidelines

UAE Central Bank Mortgage Rules: Everything You Need to Know in 2025

The UAE Central Bank Mortgage Rules play a crucial role in defining how residents, expatriates, and investors can finance property purchases in the UAE. These regulations ensure transparency, protect borrowers, and maintain financial stability across the real estate and banking sectors. Whether you are buying your first home in Dubai, investing in Abu Dhabi real estate, or seeking to refinance your mortgage, understanding these rules is essential.

Understanding the UAE Central Bank’s Role in Mortgage Regulation

The Central Bank of the UAE (CBUAE) is the governing authority responsible for supervising banks and financial institutions within the country. Its primary goal is to maintain monetary and financial stability while ensuring consumer protection.

In the mortgage sector, the CBUAE sets loan-to-value (LTV) ratios, debt-burden ratios (DBR), and eligibility criteria to promote responsible lending and safeguard borrowers from financial distress.

Loan-to-Value (LTV) Ratio Guidelines

The Loan-to-Value ratio determines how much of the property’s value can be financed through a mortgage. The remainder must be paid as a down payment by the buyer.

Here’s a breakdown of the latest LTV limits under the UAE Central Bank rules:

For UAE Nationals

First Property Purchase: Up to 80% LTV for properties valued below AED 5 million.
Properties Above AED 5 Million: Up to 70% LTV.
Second or Investment Property: Up to 65% LTV.

For Expatriates

First Property Purchase: Up to 75% LTV for properties under AED 5 million.
Properties Above AED 5 Million: Up to 65% LTV.
Second or Investment Property: Up to 60% LTV.

Off-Plan Properties

For both nationals and expatriates, financing is capped at 50% LTV for off-plan (under-construction) properties.

These restrictions are designed to ensure that property buyers maintain a healthy equity position and avoid overleveraging.

Debt-Burden Ratio (DBR) – Managing Borrower Affordability

The Debt-Burden Ratio (DBR) is another key metric established by the Central Bank. It limits the total amount of a borrower’s monthly debt repayments to 50% of their monthly income.

This rule ensures that homeowners can manage their mortgage payments without compromising their financial wellbeing. The DBR includes:

Mortgage repayments
Credit card debt
Personal loans
Car loans
Any other financial obligations

For example, if a borrower earns AED 20,000 per month, their total monthly debt payments cannot exceed AED 10,000.

Mortgage Tenure and Age Limit

The maximum mortgage tenure allowed under the UAE Central Bank rules is 25 years.

Additionally, the maximum borrower age at loan maturity is:

70 years for UAE Nationals
65 years for Expatriates

Banks and lenders are required to assess these limits before approving a mortgage, ensuring long-term affordability and reduced risk.

Minimum Salary and Eligibility Criteria

Each bank in the UAE has its own minimum salary requirement for mortgage eligibility. However, most lenders align with the Central Bank’s general guidelines:

Minimum monthly income: AED 10,000 (for salaried individuals)
Minimum down payment: 20% (for expats) and 15% (for UAE nationals)

Lenders also consider:

Employment stability
Length of service
Existing financial obligations
Credit score and repayment history

These factors collectively determine your mortgage approval and interest rate.

Refinancing Rules under the UAE Central Bank

Borrowers can refinance their mortgage to take advantage of better interest rates or terms. However, refinancing is governed by specific Central Bank conditions:

LTV ratios for refinanced properties remain consistent with purchase limits.
All refinancing offers must undergo affordability assessments.
Early settlement or refinancing may involve processing fees or penalties, typically capped by the Central Bank to protect consumers.

This structure promotes fairness and prevents financial institutions from exploiting borrowers through hidden costs.

Mortgage for Non-Residents and Foreign Investors

The UAE welcomes non-resident investors, but their mortgage access is more restricted. Under Central Bank guidelines:

Only selected banks can offer loans to non-residents.
Maximum LTV is generally 50–60%.
Proof of stable international income and creditworthiness is required.

These rules make the UAE an attractive yet regulated destination for global real estate investors, particularly in cities like Dubai, Abu Dhabi, and Sharjah.

Types of Mortgages Allowed by UAE Central Bank

The Central Bank allows a variety of mortgage structures to suit different borrower needs:

Fixed-Rate Mortgages: Interest rate remains constant for a specific period (usually 1–5 years).
Variable-Rate Mortgages: Interest rate fluctuates based on the EIBOR (Emirates Interbank Offered Rate).
Offset Mortgages: Borrowers can link their savings to reduce the interest payable on their loan.
Islamic Home Financing: Offered under Sharia-compliant structures like Ijara or Murabaha, which avoid interest-based lending.

Mortgage Insurance and Protection Requirements

The Central Bank mandates mortgage life insurance for all borrowers to ensure that, in the event of death or disability, the outstanding loan is covered.

Additionally, some lenders may require property insurance to protect the asset against fire, damage, or natural disasters.

This ensures comprehensive protection for both lenders and homeowners.

Key Benefits of the UAE Central Bank Mortgage Rules

Promotes financial stability in the real estate sector
Prevents over-lending and unsustainable borrowing
Protects consumer rights and ensures transparency
Encourages responsible home ownership
Supports long-term market growth through fair practices

These regulations are vital for maintaining trust and balance between banks, investors, and consumers.

Recent Updates to UAE Mortgage Regulations (2025)

The UAE Central Bank continues to refine its mortgage policies to align with evolving market trends. Recent updates include:

Enhanced digital mortgage approval processes
Increased transparency in mortgage fees
Standardized early repayment terms across banks
Stronger enforcement of affordability checks

These measures aim to create a more competitive, fair, and accessible housing finance environment.

Frequently Asked Questions

1. What is the maximum loan-to-value (LTV) ratio in the UAE?
For expats, it’s 75% for the first property below AED 5 million and 65% above. For UAE nationals, it can go up to 80%.

2. How long can I take a mortgage for in the UAE?
The maximum tenure allowed is 25 years.

3. Can non-residents get a mortgage in the UAE?
Yes, but only from select banks and usually up to 50–60% LTV.

4. What is the debt-burden ratio (DBR) in UAE mortgage rules?
Your total debt payments cannot exceed 50% of your monthly income.

5. Are off-plan properties eligible for mortgages?
Yes, but the maximum financing is limited to 50% of the property’s value.

Conclusion

The UAE Central Bank Mortgage Rules are designed to ensure that the property market remains stable, transparent, and sustainable. Whether you are a UAE national, expatriate, or international investor, understanding these guidelines will help you make informed financial decisions when purchasing or refinancing property in the Emirates.

By adhering to these rules, borrowers can secure the best mortgage deals, avoid financial strain, and confidently invest in one of the world’s most dynamic real estate markets.