How UAE banks decide how much to lend
Two Central Bank rules set the ceiling. The first is the debt burden ratio: everything you pay toward loans each month, including the new mortgage, must stay under 50% of your monthly income. The second is the loan to value cap, which limits the loan to a share of the property price.
Your savings set a third limit. You need enough cash for the down payment and roughly 7% of the price in fees. Whichever of these limits you hit first decides your budget, and the calculator tells you which one it is.
Worked example
An expat earning AED 40,000 a month with a AED 2,000 car loan and AED 500,000 saved, borrowing at 3.9% over 25 years:
| Step | Result |
|---|---|
| 50% of income minus existing debts | AED 18,000 a month |
| Loan that payment supports | About AED 3.45 million |
| Price your savings cover (20% + 7% fees) | About AED 1.85 million |
| Maximum price | About AED 1.85 million (savings limited) |
Here income is not the problem. Saving more, or buying off-plan with a payment plan, would raise the budget much faster than a pay rise.
Before you speak to a bank
Cut unused credit card limits, since banks count them as debt. Get a pre-approval before you make an offer so you know your exact figure. Remember that banks may test affordability at a higher rate than the one they offer you, so keep some headroom.
Guide How much mortgage can I get in the UAE? The 50% debt burden rule, loan to value caps, and why savings often limit you before salary does.Frequently asked questions
How much mortgage can I get in the UAE?
Banks cap your total monthly debt payments, including the new mortgage, at 50% of your monthly income. They also limit the loan to a share of the property value, usually 80% for an expat buying a first home under AED 5 million.
What is the debt burden ratio?
It is all your monthly loan and credit card payments divided by your monthly income. The UAE Central Bank sets the maximum at 50%. Banks count credit cards at around 5% of the limit even if you clear them each month.
What is the minimum salary for a mortgage in the UAE?
Most banks ask for at least AED 15,000 a month, and some go as low as AED 10,000 for certain employers. Self-employed buyers usually need two years of company accounts.
Do banks use my gross or net salary?
They use the fixed monthly income on your salary certificate, which is generally basic salary plus fixed allowances. Variable bonuses and commission may be counted only partly.