Discovering Excellence
Discovering Excellence
Buying Property In The UAE Has Never Been Easier.
Banks use your income capacity to set a "limit" for your loan. As a general guideline, your maximum loan amount is typically capped at 7x your annual salary. Your total monthly debt obligations (including the new mortgage) should not exceed 50% of your monthly take-home pay.
UAE Banks evaluate your financial situation by looking at your DBR. This is the percentage of your income already committed to monthly debts. To protect you against future market changes in the Dubai real estate market, banks often calculate your eligibility using a slightly higher interest rate than the current market offer. This process ensures you can easily manage payments if interest rates rise in the future.
The down payment you need depends on your residency status. If you are a resident, you will need to have at least 20% of the property price in cash to qualify for a mortgage. For the UAE Nationals, it’s lower and is set at 15%. Non-residents can also apply, but they must have at least 25% of the property as a down payment. In addition to the down payment, you also need to keep your eyes on the extra costs, such as fees, taxes, and registration fees, which is typically an additional 8%.
