Mortgages in the UAE: home loans and interest rates in 2025

If you’re an expat living in the UAE, getting a mortgage is definitely possible. But still, there are a few local rules and requirements to be aware of. Your residency status, salary, and even your employer can all play a role in your eligibility. The good news is that many banks offer mortgage products specifically for foreigners, as long as you meet certain criteria.

Here’s what you need to know about getting a mortgage in the UAE:

Mortgages in the United Arab Emirates

The United Arab Emirates has become an increasingly popular destination for expats, especially in business-friendly areas such as Dubai and Abu Dhabi.

In recognition of this trend, the mortgage market in the UAE is now well-established, with international and local lenders offering home loans to expats. Both residential and buy-to-let mortgages are available to foreign nationals living in the UAE, although their criteria vary.

Can you get a mortgage as a foreigner in the UAE?

Foreign buyers can get a mortgage in the United Arab Emirates, but need to meet certain criteria. You will need to have been in your current job for at least six months or a year, depending on the area you are buying and your lender’s rules.

Self-employed borrowers will need to have been running their business for at least two years. It can also be beneficial to have an existing relationship with the bank, as it will be familiar with your circumstances.

One of the biggest quirks of the system is that some banks will only accept applicants who work for specific companies. This means that if you work for a government department, banking institution, or multi-national company, you are unlikely to have a problem.

If your employer is smaller or less-established, however, you may struggle to get a loan from some lenders even if you’re creditworthy.

Non-residents can also obtain home finance in the UAE, although they can only purchase property in designated freehold zones. Mortgage terms are often less favorable for those not living in the country, for example higher deposits required.

Financial requirements for a mortgage in the UAE

To secure a home loan in the UAE, you will generally need to demonstrate good financial stability. This means providing evidence of:

• Minimum monthly income: this varies across banks and other lenders, but is typically at least AED 10,000 a month.
• Proof of employment: unless you have sufficient regular income from another source, you will need to show that you’ve been employed for at least six months, or self-employed for at least two years.
• Good credit score: You will generally need a credit score of at least 650, with some lenders requiring a score of 700 or more.
• Sufficient savings: Banks in UAE typically lend a maximum of 85% of the property value for UAE nationals, and 70-80% of expats. You will need to provide the remainder in the form of a deposit.

Mortgage rates in the UAE in 2025

Mortgage rates vary significantly depending on the lender, property, and your financial circumstances.

Mortgage rates in the UAE can vary greatly over time, depending on the country’s economic situation and oil prices. Current mortgage rates typically vary between 2.99% and 4.99%. Fixed rates are usually for 1, 2, 3, or 5 years. Variable rates fluctuate with market interest rates in UAE.

Some banks offer Sharia-compliant home loans in the UAE. These don’t use traditional interest rates. Instead, lenders buy the home and then either lease it to you or sell for an agreed profit over a designated period of time.

Mortgage rates in Dubai in 2025

Mortgage rates in Dubai and Abu Dhabi, the two most popular cities for expats in the UAE, are similar to those elsewhere in the country. However, they can sometimes be slightly higher. For example, some lenders may offer rates of 6% or 7%, depending on the circumstances of the loan and the borrower.

How much can you borrow for a UAE mortgage?

Expats taking out a residential loan will need a deposit of at least 20% if they are buying a property worth up to AED 5 million. More expensive homes will require a deposit of at least 30%. For UAE nationals, these amounts are 15% and 25% respectively.

If you are looking to invest in a property and rent it out, you will need a buy-to-let mortgage, which will require a higher down-payment of around 35% for UAE citizens and 40% for foreigners.

Borrowing is capped in a variety of ways. The amount you will be borrowing (including the interest) cannot be more than your total anticipated earnings for the next seven years.

In Dubai, mortgage loan payments are capped at 50% of your monthly income; a figure that is generous compared to the caps of 30% or 35% used in some European countries.

When applying for a mortgage, you might find that banks require you to have higher earnings than a local applicant, as some lenders consider expats to be a riskier proposition.

UAE mortgage calculator

You can use the following mortgage calculators to work out how much you can borrow for a home loan in UAE:

• Emirates NBD
• FAB Bank
• Mortgage Finder

Types of mortgages in the UAE

Fixed-rate mortgages

Fixed-rate mortgages allow you to have certainty about the size of your repayments for a set amount of time, although you may lose out if interest rates suddenly fall. Fixed-term mortgages in the UAE are usually around five years, although they can be as short as one year.

At the end of the fixed term, the deal moves on to the bank’s variable rate. Terms are generally set at 25 years, and the loan will usually need to be repaid before the age of 70.

Variable-rate mortgages

Variable-rate mortgages in the UAE are linked to the Emirates Interbank Offered Rate (EIBOR). These mortgages offer fluctuating rates, meaning that your payments will frequently change in line with interest rates. While you can benefit from a drop in interest rates, you will also be less certain about your monthly payments and so they are more risky.

You can usually set a variable-rate mortgage in the UAE for one-month, three-month, or six-month periods.

Islamic mortgages

Many UAE banks offer Sharia-compliant mortgages. These avoid traditional interest-based transactions. The two main types of Islamic mortgage are profit-sharing (Murabaha) and lease-to-own (Ijara). With both of these, the lender will buy the property. They will then either sell to you at an agreed profit over a fixed period, or lease it to you before selling to you at a discounted rate at the end of the lease agreement.

Mortgages for other purposes

Other types of mortgage in UAE include:

• Buy-to-let mortgages: these allow investors to purchase property with the intention of renting them out.
• Non-resident mortgages: those not living in the UAE can take out a mortgage on an investment property or holiday home. You will typically need a deposit of between 25-50%.
• Commercial mortgages: for commercial properties if you are running a business in UAE. Deposits usually range between 20–35%.

How to apply for a mortgage in the UAE

To apply for a home loan, you can either approach banks directly or take advice from a mortgage broker. For home finance in Dubai and Abu Dhabi, you will also encounter comparison websites where you can weigh up deals from a range of lenders.

A mortgage broker can be a great asset for expat borrowers. They will be able to help you navigate the quirks of the local market and find you the right deal for your circumstances. Mortgage applications in the UAE are usually processed in the space of a few weeks.

Mortgage agreements in principle

It can be helpful to get an agreement in principle before making a full application. An agreement in principle involves the bank giving basic approval for your loan in advance of you finding a property. This then allows you to go and make an offer on a home knowing it’s within budget.

Documents to get a mortgage in the UAE

When applying for a mortgage, the documents you will need may vary depending on which bank you are using.

Lenders are likely to ask you for the following:

• A copy of your passport
• Proof of residence in the UAE and proof of your current address
• Financial documents, such as proof of salary, bank statements, or your tax return

UAE mortgages: step-by-step

The main steps for getting a mortgage are as follows:

• Decide whether to approach the bank directly or use a broker
• Do your research to find the right type of mortgage for your circumstances
• Obtain an agreement in principle from the bank and ask for a letter providing evidence of this
• Find a suitable property within your budget and make an offer
• Once you have agreed on a price, pay your deposit to confirm your purchase and agree on a completion date
• On the completion date, the mortgage lender will release the funds to the seller

Expat-friendly mortgages in Dubai

There are more than 30 lenders in Dubai, however, some won’t offer mortgages for non-residents or expats in the UAE. Foreign lenders are only allowed to do business in the UAE if the central bank recognizes them.

Those who aren’t recognized cannot place a mortgage against a property’s title deed. This means that if the borrower defaults, the bank wouldn’t be able to repossess the property.

Some of the main expat-friendly lenders in the UAE include:

• Emirates NBD – Dubai government-owned lender offering mortgages of up to a maximum of AED 15 million. Mortgages are offered up to 75% loan-to-value, and a pre-approval facility is available.
• HSBC – Global banking giant offering mortgages to buyers with minimum earnings of at least AED 15,000 a month. Mortgages are only available on selected developments. Overpayments are allowed, subject to a minimum overpayment of AED 30,000.
• Mashreq – UAE-based bank offering loans to residents and non-residents. Home loans are available to employed or self-employed expat residents earning at least AED 15,000 a month at a value of up to AED 10 million.

Mortgage fees and costs in the UAE

When taking out a mortgage in the UAE, you will usually need to pay the following fees:

• Registration fee: this is typically 0.25% of the loan amount plus a small fixed fee.
• Arrangement fee: your lender will usually charge around 1% for processing the mortgage application.
• Property valuation fee: if a valuation is carried out, expect to pay up to AED 3,500 plus VAT.
• Brokerage fee: if you use a mortgage broker, they will typically charge between 1% and 2.5% of the loan amount.

Do you need property insurance to get a mortgage in the UAE?

Buildings insurance is mandatory when taking out a mortgage in the United Arab Emirates. Whether you take out contents insurance is up to you. Insurance policies in the UAE can be very affordable, and you can either purchase buildings and contents separately or as a package.

How much you will pay depends on the value of your home and belongings. As a rule of thumb, your yearly premium can be around 0.1% of the combined property value and contents.

How do mortgage repayments work in the UAE?

Repayment mortgages are the main type of home loan in the UAE. These deals involve paying a set amount each month for the duration of the mortgage term. You will usually pay by setting up a direct debit from your bank account on the same date each month.

Interest-only mortgages are less common. These involve paying just the portion of interest each month, and then needing to pay off the whole principal amount at the end of the term. As these loans are risky, they are often only available with terms of five years.

You can repay your mortgage early in the UAE, however you may have to pay an early settlement fee. This is usually 1% of the outstanding loan balance or AED 10,000, whichever is lower.

Refinancing a mortgage in the UAE

The mortgage market in the UAE is very competitive, with banks striving to offer discounted fixed periods on their home loans. This is good news for homeowners looking to switch deals, as the best offers tend to be available to people with existing mortgages.

If you are looking to switch deal, approach your current bank first. Some lenders will consider restructuring your loan with a reduced rate for a fixed term. However, while some banks offer fee-free remortgaging, most will charge you to switch.

Useful resources

• Mortgage calculator from Emirates NBD
• Mortgage calculator from Mortgage Finder