Property
UAE — Property: Mortgage Availability
The CBUAE sets hard loan-to-value (LTV) caps that all UAE banks must follow (individual banks may lend less, never more). For expatriate residents: 80% LTV for a first property under AED 5 million, 70% for properties over AED 5 million, and 60% for second homes/investment properties regardless of value. Non-resident expats face tighter caps, typically 50-60% LTV, requiring a 40-50% down payment. Off-plan purchases are capped at 50% LTV, disbursed in tranches matching construction milestones. Mortgage rates in early 2026 for foreigners range roughly 4.25-6.50% annually depending on residency status and rate type; fixed rates for 1-3 year initial periods start from 3.99-4.2% before reverting to EIBOR-linked variable rates.
Key facts
- Expatriate resident LTV caps: 80% (first property <AED 5M), 70% (>AED 5M), 60% (second homes/investment).
- Non-resident expats: typically 50-60% LTV, requiring 40-50% down payment.
- Off-plan purchases: capped at 50% LTV, disbursed in construction-milestone tranches.
- 2026 mortgage rates for foreigners: ~4.25-6.50%; fixed 1-3 year rates start from 3.99-4.2% before reverting to EIBOR-linked variable.
Common mistakes
- Assuming resident-level LTV caps apply as a non-resident — non-residents face materially lower LTV ceilings.
- Underbudgeting for off-plan purchases, which are capped at 50% LTV regardless of residency status.