What you can borrow
UAE residents buying a first home can typically borrow up to 80% of the value for properties up to AED 5 million, and less above that. Non-residents are generally offered lower loan-to-value ratios — commonly around 50-65%, depending on the bank and your profile. Off-plan financing is more restricted again.
Banks also size the loan against income: total debt repayments are generally capped at around half of monthly income, and loan terms typically run up to 25 years with an age limit at maturity.
The rule of thumb
If your net yield is higher than your mortgage rate, borrowing lifts your return on the cash you put in. If it is lower, every dirham borrowed drags your return down — you are paying more for the money than the asset earns.
Example: a property with a 6% net yield financed at 4.5% improves cash-on-cash return meaningfully, because the borrowed portion earns 1.5% more than it costs. The same property financed at 7% turns cash-flow negative even though it is a perfectly good asset.
What the comparison misses
Leverage raises your return and your risk together. A mortgage means fixed monthly payments against variable rent, so a long void or a rate reset hurts far more. Cash buyers absorb a bad year; leveraged buyers have to fund it.
- Add mortgage registration (0.25% of the loan), arrangement fees and valuation to your upfront cash.
- Check the early settlement penalty before you sign — it caps your flexibility to sell or refinance.
- Stress-test the payment at a rate two or three points above today's.
See what this means for a specific unit
Enter a price, size and rent — the calculator applies service charges, vacancy, fees and your mortgage to show net yield and monthly cash flow.
Open the yield calculator →Common questions
- Can a non-resident get a mortgage in Dubai?
- Yes, several UAE banks lend to non-residents, though usually at a lower loan-to-value — commonly around 50-65% — with a shorter list of eligible countries and stricter income documentation than for residents.
- How much deposit do I need to buy in Dubai?
- A resident first-time buyer typically needs 20% for a property up to AED 5 million, plus the 6-8% of purchase costs, which are not financeable. Non-residents should plan for 35-50% plus costs.
Keep reading
General information only, not legal, tax or financial advice. Fees, lending rules and residency criteria in Dubai change — confirm current figures with the Dubai Land Department, your bank or a licensed adviser before you commit.