Question 1

What is the minimum down payment for a mortgage in UAE?

Accepted Answer

UAE Central Bank regulations require a minimum down payment of 20% for expatriate buyers and 15% for UAE nationals when purchasing their first property. For second or subsequent properties, the minimum is 30% for expats and 20% for nationals. Properties under construction may have different requirements.

Question 2

What is the DLD transfer fee?

Accepted Answer

The Dubai Land Department (DLD) charges a 4% transfer fee on the purchase price of the property. This is payable at the time of property registration. In Abu Dhabi, the equivalent fee is 2%. The fee is typically split 2% buyer and 2% seller, but this is negotiable.

Question 3

What interest rates are available for UAE mortgages?

Accepted Answer

UAE mortgage rates typically range from 3.5% to 6% depending on the bank, loan type, and borrower profile. Fixed-rate options are available for 1-5 years, after which rates revert to variable. Islamic home finance (ijara/murabaha) options are widely available with comparable profit rates.

Question 4

What is the maximum mortgage term in UAE?

Accepted Answer

The maximum mortgage term in the UAE is 25 years, and the loan must be fully repaid before the borrower turns 65 (for salaried employees) or 70 (for self-employed). Some banks offer up to 30 years for UAE nationals.

Question 5

Can expats get a mortgage in UAE?

Accepted Answer

Yes, expatriates can get mortgages in the UAE, subject to a minimum 20% down payment. Most banks require a minimum monthly salary of AED 15,000-25,000, and the maximum loan-to-value ratio is typically 80% for the first property and 70% for subsequent ones.

Question 6

What additional costs should I budget for when buying property in UAE?

Accepted Answer

Beyond the down payment, budget for: DLD transfer fee (4% in Dubai), registration fee (0.25%), property valuation (AED 2,500-3,500), mortgage registration (0.25% of loan amount), agency commission (2%), and conveyancing fees. Total additional costs typically run 7-8% of the property value.

Question 7

Is mortgage interest deductible in UAE?

Accepted Answer

Since there is no personal income tax in the UAE, there is no mortgage interest deduction available to individuals. For businesses purchasing commercial property, the interest/profit paid on commercial mortgages can be deducted as a business expense for corporate tax purposes.

UAE Mortgage Calculator — Home Finance Payment