The first-time buyer's guide to UAE mortgages

Start with the real budget

The property price is not the number that matters. Your number is: deposit + roughly 6–7% in purchase costs + a payment you can live with at a stressed rate.

For a first home under AED 5M, expats put down a minimum of 20% and UAE nationals 15%. On a AED 1.5M apartment, that's AED 300,000 down plus about AED 100,000 in costs — call it AED 400,000 to walk in the door.

The 50% rule that governs everything

The Central Bank caps your total monthly debt payments — mortgage, car loan, credit-card minimums — at 50% of income. Banks then apply their own buffers on top.

Practical translation: on a AED 25,000 salary with a AED 2,000 car loan, about AED 10,500 of monthly mortgage payment is your realistic ceiling.

Fixed vs. variable, honestly

UAE mortgages typically fix for 1–5 years, then revert to a margin over EIBOR (the interbank rate). The fixed headline gets the attention; the reversion margin quietly decides what you pay in years 4–25.

A brilliant 3.78% fixed with a 5% reversion margin can cost more over ten years than a 4.2% fixed reverting at 1.5%. Always compare both numbers.

Get pre-approved before you shop

Pre-approval costs little, lasts 60–90 days, and changes your negotiating position entirely. Sellers discount for certainty.