If you’re planning to buy property in the UAE, Loan-to-Value (LTV) is the rule that shapes your mortgage down payment (and your whole budget). LTV tells you the maximum percentage a bank can finance, and it’s one of the most important UAE mortgage regulations you’ll deal with.
Below is a clear, practical breakdown of mortgage LTV rules for expats vs UAE nationals, what your minimum down payment usually looks like, and how to plan your cash upfront—especially for Dubai mortgage LTV ratio scenarios.
UAE mortgage LTV limits (the numbers people look for)
Based on the UAE Central Bank’s mortgage loan regulations, these are the commonly referenced maximum LTV caps(especially for completed/ready properties):
1) First home (owner-occupier), completed property
Mortgage rules for nationals
- Property value ≤ AED 5 million: Max 80% LTV (minimum ~20% down payment)
- Property value > AED 5 million: Max 70% LTV (minimum ~30% down payment)
Mortgage rules for expats
- Property value < AED 5 million: Max 75% LTV (minimum ~25% down payment)
- Property value > AED 5 million: Max 65% LTV (minimum ~35% down payment)
2) Second / subsequent home (or investment property)
- UAE nationals: Max 65% LTV (minimum ~35% down payment)
- Expats: Max 60% LTV (minimum ~40% down payment)
3) Off-plan (under construction)
All categories: Max 50% LTV (minimum ~50% down payment)
Important: These are maximum caps. Banks can approve lower LTV depending on your income, credit profile, property type, and valuation.
What is “loan to value” (LTV) in a mortgage?
Loan to value (LTV) (sometimes searched as ltv loan or loan to value ratio mortgage) is simply:
LTV = Loan amount ÷ Property value (or bank valuation)
Two key details that catch buyers off guard:
- Banks often use the lower of the purchase price or the bank valuation.
- So even if you negotiate a great deal, a conservative valuation can increase your minimum down payment.
Why UAE mortgage LTV rules matter (in real money)
LTV doesn’t just affect your loan—it affects your total cash needed upfront.
Example (expat, first home, ≤ AED 5m):
- Property price: AED 2,000,000
- Max 75% LTV ⇒ Max loan: AED 1,500,000
- Minimum down payment (before fees): AED 500,000
Now add Dubai buying costs (more on this below), and your cash requirement grows quickly.
Dubai mortgage LTV ratio: is Dubai different from other Emirates?
When people search Dubai mortgage LTV ratio, they’re usually asking if Dubai has separate LTV rules.
In practice:
- The LTV caps are set at a UAE level (for regulated lenders), so the LTV framework is not “Dubai-only.”
- What is very Dubai-specific is the transaction fee stack, especially when you register the purchase and mortgage.
Minimum down payment in Dubai: don’t forget the fees (they’re cash)
Even if your LTV allows a certain loan size, fees usually can’t be “rolled into” the mortgage, so you should budget them separately.
For Dubai, key government fees commonly include:
- DLD transfer/registration fee: 4% (seen in Dubai Land Department e-service guidance for mortgaged property transfers)
- Mortgage registration fee: 0.25% of the mortgage value
Bottom line: your “minimum down payment” is not your only cash outlay. You’ll typically need down payment + DLD fees + mortgage registration + other admin costs.
Bank policy vs regulation: why you may see 80% or even 85% advertised
You’ll often find bank product pages and Key Facts Statements showing slightly different LTV ceilings (especially for completed properties), because:
- there can be policy adjustments over time, and
- banks publish product-level caps based on eligibility and underwriting.
For example, some banks’ published product documents show:
- Up to 85% for UAE nationals and up to 80% for expats on home loans (completed property), depending on the product and eligibility.
- Another bank KFS example shows a split by property value (≤ 5m vs > 5m) and also restates second-property caps.
This is why we recommend treating LTV as a planning ceiling, then validating your realistic LTV by getting a bank assessment (or working with a broker who can compare multiple offers).
Other mortgage regulations that affect approval (not just LTV)
1) Debt Burden Ratio (DBR)
Even with a big down payment, you still need to pass affordability checks. UAE guidance commonly references:
- DBR up to 50% (i.e., total monthly debt obligations should not exceed ~half your income).
2) Maximum mortgage term
UAE mortgage regulations commonly reference:
- Maximum term: 25 years
(Individual banks may also set their own age-at-maturity rules.)
Practical planning checklist (what we tell buyers before they commit)
Here’s a simple way to plan your budget using the loan to value ratio rules:
Confirm your category
- Expat vs national
- First home vs second/investment
- Completed vs off-plan
Use the LTV cap to estimate the loan
- Don’t forget valuation risk (bank may value lower than your agreed price)
Calculate your cash requirement
- Down payment (based on LTV)
- DLD fees and mortgage registration (Dubai buyers: plan for 4% + 0.25% of mortgage value as key references)
- Bank fees, valuation, insurance, agent commission, etc. (varies by deal)
Check DBR early
- If DBR is tight, your approval may come back with lower loan / different terms.
Conclusion:
UAE mortgage LTV rules decide how much a bank can finance and how much minimum down payment you must pay. Nationals usually get higher LTV than expats, second homes need bigger down payments, and off-plan has the strictest limits.
Always budget for extra cash costs (like Dubai fees) on top of the down payment, and check affordability before you commit.
How Credit Link helps?
At Credit Link, our goal is simple: make the mortgage journey clear, compare realistic options across lenders, and help you understand your real upfront cash (not just the headline LTV).
FAQs:
1. What is the loan to value ratio in a mortgage?
The loan to value ratio (LTV) is the ratio of the mortgage loan amount to the property value/valuation used by the bank.
2. What’s the minimum down payment for expats in the UAE?
Commonly referenced caps for expats are 25% (≤ AED 5m) or 35% (> AED 5m) for a first home, because LTV caps are often 75% and 65% respectively. (Plus fees, which are separate cash.)
3. What are the mortgage rules for nationals vs expats?
Nationals generally have higher LTV caps than expats for first homes in the UAE mortgage LTV rules.
4. Is off-plan mortgage LTV different?
Yes—off-plan financing is commonly referenced at 50% LTV across categories, meaning a higher upfront cash requirement.
