How a UAE mortgage payment is worked out
UAE banks use a standard repayment formula. Each month you pay the same amount, but early on most of it is interest. As the balance falls, more of each payment goes toward the loan itself. The chart in the calculator shows that shift year by year.
The three things that move your payment most are the loan amount, the interest rate and the term. A longer term lowers the monthly payment but adds a lot of interest overall. Try 20 years against 25 years to see the difference.
Central Bank limits to know
- Loan to value. Expats can borrow up to 80% on a first home under AED 5 million, 65% above that, and 60% on second homes. UAE nationals get slightly higher limits.
- Debt burden. All your monthly loan payments together cannot exceed 50% of your monthly income.
- Term. Up to 25 years, and the loan must end by retirement age.
Worked example
A AED 1,800,000 apartment with 20% down, borrowed at 3.9% over 25 years:
| Item | Amount |
|---|---|
| Loan amount | AED 1,440,000 |
| Monthly payment | AED 7,522 |
| Total interest over 25 years | About AED 816,000 |
| Total repaid | About AED 2,256,000 |
Rates on this page are illustrative. Fixed periods in the UAE are usually one to five years, after which the rate becomes variable, so treat the long-term interest figure as an estimate.
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
What is the maximum mortgage term in the UAE?
The UAE Central Bank caps home loans at 25 years. Banks also limit the term so the loan is repaid by age 65 for most expats and 70 for UAE nationals.
What mortgage rate should I expect in 2026?
Fixed rates for residents have been running at roughly 3.75% to 4.2% depending on the fixed period, with variable rates set as a margin over 3 month EIBOR. Your offer depends on income, loan size and the bank.
What happens after the fixed rate period ends?
Most UAE mortgages switch to a variable rate, usually EIBOR plus a margin, once the fixed period of one to five years ends. Your monthly payment can then go up or down.
How much deposit do I need?
Expats buying a first home under AED 5 million need at least 20%. Above AED 5 million it is 35%, and second homes need 40%. You also need cash for fees, which banks will not finance.