How to get a mortgage in the UAE

Mortgage interest rates in Dubai in 2025

Banks in the UAE offer a variety of mortgage products, but most of them fall into two main categories: fixed-rate and variable-rate mortgages.

Fixed-rate mortgages

A fixed rate in the range of 3.99–5.49% per year for a set period allows the borrower to plan their payments and stay protected from interest rate hikes. However, this fixed period usually doesn’t exceed 5 years. After that, the loan switches to a revised rate, which is set above the benchmark EIBOR. This type of mortgage is a good fit for borrowers who plan to repay the loan relatively quickly or want maximum predictability in the first few years.

Variable-rate mortgages

Variable-rate loans typically start from around 3.5–4%+ (EIBOR + the bank’s margin). In this case, the interest rate moves in line with changes in EIBOR: if rates go down, the borrower benefits, but if they rise, monthly payments increase. This option is better suited to borrowers who have a solid financial buffer and are comfortable with potential fluctuations in their repayments.

Additional costs

On top of your down payment, you should budget for the following mandatory costs related to getting a mortgage in the UAE:

• DLD transfer fee. In Dubai this is usually 4% of the purchase price plus an administrative fee of around 540–580 AED.
• Mortgage registration fee. In Dubai this is 0.25% of the loan amount + 290 AED fixed admin fee.
• Bank arrangement fee. Up to 1% of the loan amount + 5% VAT (most often 0.5–1% + VAT, depending on the bank).
• Mortgage broker fee. Either a fixed amount or a percentage of the loan amount (if you use a broker).
• Real estate agent’s commission. Usually around 2% of the purchase price + 5% VAT.
• Life insurance. Typically 0.4–0.8% per year of the reducing loan balance (mandatory with most banks).
• Property insurance. Around 1,000 AED per year (not strictly mandatory, but strongly recommended).
• Property valuation fee. Approximately 2,500–3,500 AED + 5% VAT.

Which banks offer mortgages in Dubai

You can obtain a mortgage in Dubai from the following banks:

• RAKBANK
• CBD
• HSBC
• Emirates NBD
• First Abu Dhabi Bank
• Mashreq
• ADCB (Abu Dhabi Commercial Bank)

Dubai mortgage case studies

Let’s look at two typical mortgage borrower profiles in the UAE: their basic mortgage terms and goals, plus the key benefits and potential risks for each.

Case 1: Top manager with a salary of 35,000 AED

Our first borrower is a resident expat in Dubai working as an executive director at an international IT company. His official salary of 35,000 AED per month is paid into a local bank account, he has a stable employment contract and savings for the down payment. His goal is to buy his first apartment in Dubai to live in, stop renting and lock in comfortable, long-term housing.

In this scenario, UAE banks are generally happy to approve a mortgage:

• His income is well above the minimum threshold, he has a valid residence visa and Emirates ID, and with a clean credit history he ticks all the core boxes.
• In practice, he can expect a loan of around 75–80% of the property value for a first home up to 5 million AED, a fixed rate of about 3.99–4.75% for the first 2–3 years followed by a variable rate (EIBOR + margin), and a tenor of up to 25 years.
• Based on the debt burden ratio cap (up to 50% of monthly income) and the “up to 7x annual income” rule, this kind of borrower can typically qualify for a mortgage of around 2.5–3 million AED and a property in the 3.3–4 million AED range, assuming a 20–25% down payment plus 6–8% in extra transaction and mortgage costs.

The upside is obvious: he’s an ideal client for the banks — high, fully documented income, a reputable employer, low risk for the lender and, as a result, softer conditions on both rate and loan amount.

The main pitfalls are the need to budget not only for the down payment but also for all additional fees, and to remember that once the loan switches to a variable rate, monthly payments can increase if rates go up.

Case 2: Property investor with a residence visa

Our second borrower is a UAE resident who already owns one or more properties in the country. He earns income from business, employment or rentals and wants to buy another apartment as an investment. He doesn’t have enough cash to pay the full price, so he plans to use a mortgage as a financial lever to grow his portfolio.

UAE banks are generally willing to lend to this type of client, but now he is treated as a borrower for an “additional/investment property”.

• The allowed loan-to-value ratio is lower — typically up to 60% for the second and subsequent properties (and sometimes less for off-plan units). This means the investor must put in roughly 40% of the price from his own funds plus 6–8% in associated costs.
• Interest rates are usually in the same ballpark as for a first home, but may be slightly higher because the deal is investment-driven, and the tenor is often capped at 20–25 years.

The main advantage for the investor is the ability to scale the portfolio without paying 100% of each property in cash: with a mortgage, he can buy, say, a 2.5 million AED unit while investing around 1 million AED of his own money and financing the rest through the bank — provided that rental income and expected capital growth justify the cost of borrowing.

The risks include higher down payment requirements, stricter affordability checks, and the possibility that returns will shrink if interest rates rise or if the market corrects.

Getting a mortgage in Dubai with a reliable partner

Dubai’s real estate market keeps expanding: there is more supply than before, but demand from expats and investors remains strong. More and more residents are choosing to buy instead of rent, and investors see property as a clear and relatively secure long-term asset. UAE banks lend both to residents and non-residents, but terms, rates and extra costs vary significantly from one bank to another — a wrong choice at this stage can easily cost you tens of thousands of dirhams.

Emirabiz has been working with UAE property and mortgages for more than 12 years — we don’t just advise clients, we also invest in this market ourselves, so we know how it really works from the inside.

Leave a request for a consultation with Emirabiz: we’ll review your situation, help you choose the right bank and structure, and support you through the process of buying property in Dubai, including with a mortgage, in the safest and most cost-effective way for you.