Key takeaways
- Expatriates buying a first home can borrow up to 80% of a property worth less than AED 5 million, and 70% above that.
- Second and investment properties are capped at lower ratios: 60% for expatriates and 65% for UAE nationals.
- Off-plan property is capped at 50% regardless of buyer type.
On this page
The loan-to-value ratio (LTV) is the loan divided by the value of the property. An 80% LTV on an AED 2 million home means an AED 1.6 million loan and an AED 400,000 deposit. Lenders in the UAE work within maximum LTVs set by the Central Bank, and the deposit you need follows directly from those limits.
This article sets out the current maximums, explains the categories, and shows how the deposit changes with the buyer and the price.
The Central Bank maximums
The Central Bank of the UAE publishes the maximum LTV ratios in its mortgage regulation. They are ceilings: a lender may apply lower limits, and the regulation expects lenders to be more conservative where risks are higher.
| Buyer and purpose | Property value | Maximum LTV |
|---|---|---|
| UAE national, first home (owner occupier) | Up to AED 5 million | 85% |
| UAE national, first home | Above AED 5 million | 75% |
| UAE national, second or investment property | Any value | 65% |
| Expatriate, first home (owner occupier) | Less than AED 5 million | 80% |
| Expatriate, first home | Above AED 5 million | 70% |
| Expatriate, second or investment property | Any value | 60% |
| Any buyer, property bought off plan | Any value | 50% |
The regulation says each borrower may claim only one property under the owner-occupier category. A second home, or a property bought to rent out, falls into the lower bands.
What the maximum means for your deposit
Take an expatriate buying a first home for AED 2 million. The maximum LTV is 80%, so the most a lender can lend is AED 1.6 million, and the deposit must be at least AED 400,000. Purchase costs such as the Dubai Land Department transfer fee are paid on top of that deposit.
The same buyer purchasing a second home at AED 2 million faces a 60% limit. The loan falls to AED 1.2 million and the deposit rises to AED 800,000. That gap is why investors often need far more cash than a first-time buyer for the same property.
Off-plan purchases face a 50% cap. On an AED 1.5 million off-plan apartment, the most a lender can finance at the start is AED 750,000. The rest is usually planned around the payment schedule and the handover, which is explained in our guide to handover financing.
Other limits that apply alongside LTV
- Maximum tenor: the regulation sets the maximum mortgage term at 25 years.
- Debt burden ratio: monthly repayments are capped at 50% of income, as explained in our debt burden article.
- Maximum financing amount: UAE nationals can borrow up to 8 years of annual income, and expatriates up to 7 years.
- Source of repayment: repayments must come from salary or verifiable business or rental income, not from end-of-service benefit.
A checklist before you choose a property
- Confirm your nationality category and whether this will be your only owner-occupied property.
- Work out the deposit for the LTV that applies to the price you are considering.
- Add the purchase costs on top, using the calculator.
- Ask the lender whether it applies a lower LTV than the regulatory maximum.
How the property is valued
The loan-to-value ratio is calculated on the value a lender accepts, not on the price in your sale agreement. The Central Bank requires an independent on-site valuation from a suitably qualified third party before a lender commits to the loan. The valuer must be independent of the borrower, the seller and the developer, and the report should not reflect expected future price increases.
This matters most when you agree a price above the market value. If the valuation comes in lower, the loan is capped at the lower figure, and the gap between the price and the loan must be met from your own funds. Ask your broker to explain the valuation process early, so you can negotiate or adjust your budget before you commit to a sale agreement.
Where the deposit can come from
The regulation expects the down payment to come from your own resources, not from other borrowing. A personal loan or a credit card advance used to fund the deposit is not acceptable under the Central Bank framework, and lenders are expected to make this explicit in their own lending policies. Keep statements that show where your deposit came from, because lenders ask for them.
Sources
- Central Bank of the UAE Rulebook, Regulations Regarding Mortgage Loans, Article 3 (Important Ratios): LTV, tenor and maximum financing amount. Consolidated version 2, 8 April 2020.
- Checked against the sources below on 27 October 2026. Worked examples are illustrative.
Frequently asked questions
The regulation sets 80% for an expatriate’s first owner-occupied home below AED 5 million. Lenders can apply lower limits, and categories such as non-residents may be treated differently by individual banks.
The regulation says the down payment should come from your own resources and not from personal loans or credit cards. Lenders do not treat other assets as a way to exceed the LTV ceiling.
It is based on the property value. Lenders order an independent valuation, and the loan is measured against the value they accept, which can be lower than the price.
This article is general information about mortgages in the UAE, correct to the best of our knowledge on 27 October 2026. It is not financial advice. Rates, fees and lending criteria change and are set by each lender and authority — confirm the details for your situation.
