UAE Mortgage Calculator (with Central Bank Limits)

How is a UAE mortgage payment calculated?

The calculator uses the standard repayment formula banks use for a fixed monthly instalment. It takes the loan amount (price minus down payment), the yearly interest rate divided by 12, and the number of months in the term. Each month you pay the same amount: early on most of it is interest, and later most of it repays the loan.

On top of the payment, the tool checks your case against the Central Bank of the UAE Mortgage Loans regulation. That tells you the most a bank is allowed to lend, so you know the smallest down payment you need.

A worked example

Say you are an expatriate buying your first home in Dubai for AED 2,000,000. The property is under AED 5 million, so the Central Bank limit is 80% loan to value.

• Maximum loan: 80% x 2,000,000 = AED 1,600,000
• Minimum down payment: AED 400,000 (20%)
• Rate: 4.5% a year (an example; use the rate your bank quotes)
• Term: 25 years, the longest allowed (300 months)

The monthly payment comes to about AED 8,893. Over 25 years you would repay about AED 2,667,996, of which roughly AED 1,067,996 is interest.

Now the income checks. With a monthly income of AED 30,000, this payment is about 29.6% of income. All your loan repayments together, including car loans and credit cards, must stay under 50%, so AED 15,000 a month here. The loan also has to be no more than 7 times your annual income as an expat: 7 x 360,000 = AED 2,520,000, so AED 1,600,000 fits.

Central Bank limits to know

Other rules from the same regulation:

• Maximum term: 25 years.
• Debt burden ratio: all your monthly debt repayments together can be at most 50% of your income.
• Income multiple: total financing up to 7 times annual income for expats and 8 times for UAE nationals.
• Age limits: set by each bank, so the term you can get may be shorter if you are close to retirement.

Why the bank may offer less

The Central Bank sets the ceiling, not the offer. Lenders also stress test your application at a higher interest rate than the one you will pay, to check you could still cope if rates rise. A payment that looks fine at today's rate may fail the test, which can lower the loan a bank approves. Your credit history, job type and length of employment matter too.

Tips before you apply

• Budget for fees as well as the deposit. Buying usually costs around 6% to 8% of the price on top, including the 4% Dubai Land Department fee. The Dubai property fees calculator breaks it down line by line.
• Compare the full cost, not only the rate. A low introductory rate can rise after the fixed period. Ask what the rate becomes afterwards and what early settlement costs.
• Try a shorter term. Moving from 25 to 20 years raises the monthly payment but can cut the total interest a lot. Run both in the tool.
• Off-plan needs more cash. With a 50% limit, plan for a much larger share from your own savings.
• Still weighing it up? Our guide to buying property in Dubai and its costs covers the whole process, and the renting in Dubai guide helps you compare with staying a tenant.

Results are estimates for planning. Your bank's offer letter, based on its own rate and checks, is what decides the final numbers.