Mortgages for off-plan and non-resident buyers in the UAE

Can you borrow to buy an off-plan home in Dubai or Abu Dhabi? Can you borrow if you do not live in the UAE? The answers come from one place: the Central Bank of the UAE (CBUAE) sets the limits every bank must follow, and each bank decides, within those limits, whom it will lend to.

This guide quotes the Central Bank's regulation directly. It is general information, not financial advice. Talk to a bank or a licensed mortgage adviser about your own case.

Off-plan purchases: maximum LTV of 50% [S1]

The CBUAE's Regulations Regarding Mortgage Loans set maximum loan-to-value (LTV) ratios [S1, Art. 3(2)]. The regulation is in force and has been amended [S3]. For property bought off-plan the rule is the same for everyone:

"the maximum LTV for mortgages on property being purchased off plans is 50% regardless of purpose, value, or category of purchaser" [S1, Art. 3(2)(C)].

In plain terms: a bank may lend at most half of the value of an off-plan property, whether you are a UAE national or an expatriate, and whether it is your home or an investment. You fund at least the other half yourself.

Put simply, under the 50% off-plan maximum LTV, the loan cannot exceed half of the property's value [S1].

Ready property: the limits for expatriates

Once a property is complete, the limits depend on whether it is your first home and on its value. For expatriates [S1, Art. 3(2)(B), as amended by S2]:

Under the amendment, a property valued at AED 5 million or less falls in the higher-LTV band, for both nationals and expatriates [S2]. Each borrower can claim only one property in the first-home category [S1].

Other Central Bank limits

• Debt burden ratio: total monthly debt repayments may not exceed 50% of gross salary and regular income. Banks must stress-test the loan at 2 to 4 percentage points above the current rate [S1, Art. 3(1)].
• Investment property: banks deduct at least two months' rental income when assessing your ability to repay, to allow for empty periods [S1, Art. 3(1)].
• Maximum term: 25 years [S1, Art. 3(3)].
• Maximum amount: up to 7 years' annual income for expatriates, 8 years for UAE nationals [S1, Art. 3(4)].
• Repayment source: salary or verifiable business or rental income; end-of-service benefits cannot be used [S1, Art. 3(5)].

What about non-residents?

The Central Bank regulation sets its limits by category (UAE national or expatriate, first home or not, off-plan or ready). We did not find a separate non-resident LTV in the regulation [S1]. Whether a bank lends to someone living outside the UAE, how much, and on what income evidence, is each bank's own policy, and it is often stricter than the Central Bank maximum.

What that means in practice:

• Ask the bank directly whether it lends to non-residents from your country, and on which property types.
• Expect to show income in a form the bank can verify.
• Expect the bank to value the property itself; the loan is based on the bank's value, not only on the price.

For property purchased off plans, the maximum LTV is 50% regardless of purpose, value, or category of purchaser [S1, Art. 3(2)(C)]. Confirm with your bank how this applies to your own case.

How a mortgage fits an off-plan payment plan

Off-plan payment plans spread the price over the construction period, and often over a period after handover. A mortgage usually comes in later, at or near handover, to pay the balance.

Questions to settle before you sign the SPA:

1. How much of the price do I pay before handover from my own money?
2. Does the developer have an arrangement with a bank for off-plan finance on this project?
3. If I plan to borrow at handover, will that bank lend on a completed unit in this building, at the LTV I need?
4. What happens under the SPA if my mortgage is not approved in time? Missing the handover payment is a default; see our escrow and protection guide.

See also our guide to payment plans.

Registration costs in Dubai

The Dubai Land Department offers a mortgage registration application for a property in favor of the financing entity, to guarantee the rights entailed on the property [S4]. DLD charges 0.25% of the mortgage value, plus AED 250 per title deed and AED 10 knowledge and AED 10 innovation fees per drawing [S4]. For off-plan (provisional sale) property, DLD needs a no-objection e-certificate (e-NOC) from the developer, issued through the Dubai REST app [S4]. Bank fees are on top and differ by bank.

More on fees: Off-plan fees in Dubai.

Mortgages and the Golden Visa

ICP accepts property financed by a loan from an approved local bank for the AED 2,000,000 Golden Residency route [S5]. For mortgage registration through trustee offices, Dubai Land Department requires a letter from the mortgagee bank [S4]. See our Golden Visa guide.

Borrowing at home instead

Some buyers, especially from India, the UK and Europe, ask whether they can borrow in their home country against property they already own there and pay cash in the UAE. That is a question for your home-country lender and tax adviser, not for UAE rules, and the answer differs by country. On UAE mortgages, the maximum debt burden ratio is 50% of gross salary and regular income [S1]. Lenders must also consider the borrower's other debt servicing obligations [S3].

Currency matters too. If your income is in another currency, a change in exchange rates changes what each instalment costs you. Build that into the buffer you keep for the payment plan.

A checklist for the bank

• Do you lend to my residency status and nationality?
• What LTV will you offer on this property, off-plan and at completion?
• How do you value the property?
• What are your arrangement, valuation and early repayment fees?
• What rate will you stress-test me at?
• Will you lend on this specific building?

FAQ

How much can I borrow for an off-plan property in the UAE? At most 50% of the property's value, for every type of buyer [S1, Art. 3(2)(C)].

How much can an expatriate borrow for a completed first home? For a first home, nationals get up to 85% if the value is up to AED 5 million and 75% above that. Expatriates get up to 80% if the value is up to AED 5 million and 70% above that [S2].

Can non-residents get a mortgage in Dubai? The LTV limits are maximums, and lenders may adopt more conservative limits [S3]. The off-plan maximum is 50% regardless of category of purchaser [S1].

What is the maximum mortgage term? 25 years [S1, Art. 3(3)].

How much of my income can go on repayments? Total debt repayments are capped at 50% of gross salary and regular income [S1, Art. 3(1)].

What does DLD charge to register a mortgage? 0.25% of the mortgage value plus fixed fees [S4].

Is this financial advice? No. It is general information. Your bank decides your loan.

---

Reviewed by the Vetted Property team. Related: Elevia Residences · Sobha City.

Sources

• [S1] CBUAE Rulebook, Regulations Regarding Mortgage Loans (Circular 31/2013), Article 3: Important Ratios
• [S2] CBUAE Rulebook, Board Resolution No. 31/2/2020 amending Circular 31/2013
• [S3] CBUAE Rulebook, Regulations Regarding Mortgage Loans (status and amendments)
• [S4] DLD, Mortgage registration
• [S5] ICP, UAE Golden Residency guide