What is the maximum mortgage/home loan allowed in Dubai ?

mortgage cap dubai

The Central Bank issued a new set of mortgage regulations capping Maximum LTV, loan tenure and age, which came into effect on 28th November 2013, upon being published in the Official Gazette.

The Central Bank was met with a lot of opposition from bankers in the UAE when it issued a circular announcing a proposed set of mortgage lending restrictions in December 2012. The Central Bank wanted to initially cap mortgage lending to expats at 50% for a first home purchase and 40% for subsequent purchases and a similar cap for lending to UAE Nationals at 70% and 60% respectively.

CEOs of banks and top banking officials in the UAE gathered to convince the Central Bank to rethink its strategy. Following widespread criticism and after meetings with the Emirates Banks Association (EBA), the Central Bank issued a revised set of mortgage lending regulations on 29th October 2013, taking a softer stand on the subject.

The Objective:

By regulating and limiting the maximum Loan-to-Value (i.e., the percentage of the property value that banks can lend to borrowers), the Central Bank’s objective is to avoid the real estate market from being overheated and to lower risky and irresponsible lending by banks.

The 2008 real estate crash, which saw prices of properties in the UAE plummet to almost half of their inflated value at the peak, occurred at a time when mortgage lending by banks could be 100% of the property value.

Cap on Maximum LTV:
The following table provides information on the maximum mortgage lending or LTV permitted by the Central Bank:

Type of Purchase


UAE Nationals

First Time Purchase < AED 5 Million



First Time Purchase > AED 5 Million



Second & Subsequent Purchases



Off Plan Property Purchases



Cap on Loan Tenure:

As per the latest mortgage regulations, the maximum loan tenure is limited to 25 years.

Cap on Maximum Age of Borrowers:

The maximum age at the time of the last repayment is 65 years for expats, and 70 years for UAE Nationals.

The regulations will help to deter speculators from buying properties on mortgage and flipping them to make a quick profit. Only serious end-users are likely to be interested in taking a home loan in the post-mortgage cap market.

However, many experts argue that these restrictions on mortgage lending will only put a heavier burden on end-users who go the mortgage route to buy a house in the UAE. Majority of the investors, especially the ones investing in off-plan properties, are cash buyers who will not be affected by these mortgage lending regulations.