Mortgage in Dubai 2026: Interest Rates, Calculator, Down Payment

Mortgage in Dubai

This guide starts with today's mortgage rates in Dubai, because that is what most people ask first. It then explains who can get a mortgage, how much you can borrow, where to get one, how to apply and what it costs.

Mortgage Rates in Dubai in 2026

Mortgage rates in Dubai in October 2026 are about 3.75% to 4.05% for the first one to five years of the loan. After that, most loans move to a rate of about 5.3% to 6.1%. So there are two rates to look at, not one.

Fixed and variable home loan interest rates

A home loan in Dubai usually has two parts:

• The fixed rate. This rate stays the same for the first one, two, three or five years. It is the low rate you see in adverts.
• The variable rate. When the fixed years end, your loan moves to a variable rate. This rate goes up and down with the market, and it lasts for the rest of the loan.

Most people look only at the fixed rate. But you will pay the variable rate for 20 years or more, so it matters more.

How banks set the variable rate

Banks set the variable rate with a simple sum: EIBOR plus the bank's margin.

EIBOR is the interest rate that UAE banks charge each other. The Central Bank publishes it every day. You cannot change EIBOR, and it is the same for every bank. On 30 September 2026 the three-month EIBOR was 4.32%.

The margin is the part the bank adds on top. It is different at each bank, and it is written in your loan offer. The margin is the number you can compare and negotiate.

Home loan interest rates in Dubai, bank by bank

This table shows what three banks publish on their websites. We worked out each rate using EIBOR on 30 September 2026.

Other banks do not publish their margin. Brokers told Khaleej Times in July 2026 that the lowest fixed rates were about 3.75% for one year and 3.95% for three years.

What happens to your payment when the fixed rate ends

Your monthly payment usually goes up when the fixed years end. Here is an example with a loan of AED 1.6 million over 25 years, using HSBC UAE's published rates.

At today's rates, this buyer pays AED 1,123 more every month after the fixed years. The payment goes up even if EIBOR falls by one full point. So before you sign, work out your payment at the variable rate, and check that you can afford it.

Why mortgage rates in Dubai went up in 2026

The Central Bank of the UAE raised its main interest rate to 3.90% in September 2026. EIBOR followed. It went from 3.99% to 4.32% during September.

The UAE dirham is tied to the US dollar. So interest rates in the UAE follow interest rates in the United States, not the Dubai property market. Rates can change a lot: the Central Bank's main rate was 0.15% in 2021 and 5.40% in 2023.

Mortgage calculator: your monthly payment

Use this table to estimate your monthly payment. It shows the payment for each AED 1 million you borrow, over 25 years.

For example, you borrow AED 2 million at 5.5%. Your payment is 2 times AED 6,141, which is AED 12,282 a month. A shorter loan costs more each month, but you pay less interest in total.

Who Can Get a Mortgage in Dubai

Three groups of people can get a mortgage in Dubai: UAE nationals, residents and non-residents. Banks have different rules for each group, so first find the group you belong to:

• UAE nationals are citizens of the UAE.
• Residents are people from other countries who live in the UAE on a residence visa. Many people call them expats.
• Non-residents are people who live outside the UAE and do not have a UAE residence visa.

This table shows the main rules for a first home that costs less than AED 5 million.

The loan limits and the income limits come from the Central Bank of the UAE. The salary figures come from the banks' own websites.

Mortgage in Dubai for UAE nationals

UAE nationals get the highest loans. A bank can lend up to 85% of the price of a first home under AED 5 million, and up to 8 times your yearly income. UAE nationals can also apply for government housing loans, which have their own rules.

Mortgage in Dubai for residents

Residents can borrow up to 80% of the price of a first home under AED 5 million. The limit is lower for expensive homes, second homes and homes that are not built yet. Your nationality does not change these rules. We explain salary, age and documents in our guide to a mortgage in Dubai for expats.

Mortgage in Dubai for non-residents

Some banks lend to people who live abroad, but the loans are smaller. Most banks lend 50% to 60% of the price, so you need a much bigger deposit. Banks also ask for a higher income. Read our guide to a mortgage in Dubai for non-residents for the banks and their rules.

How Much Can You Borrow on a Mortgage in Dubai

Two things limit your loan: the price of the home and your income. The bank works out both limits and lends you the lower amount.

The limit from the price of the home

The Central Bank limits the loan to a share of the home's price. You pay the rest yourself. This payment is called the deposit, or down payment.

Our guide to the minimum down payment in Dubai shows these amounts in dirhams.

The limit from your income

The bank adds up all your monthly debt repayments. The total cannot be more than 50% of your monthly income. Banks call this the debt burden ratio.

Your debt repayments include four things:

• the new mortgage
• car loans and personal loans
• instalment plans
• a part of your credit card limits, even if you do not use the cards

The bank also tests you at a higher interest rate than the one you will pay. The Central Bank's mortgage regulations require this test.

“Lenders must "stress test the loan at (2 to 4) percentage points above the current rate of interest on the loan".”

Central Bank of the UAE, Regulations Regarding Mortgage Loans, Article 3.1

This test makes your loan smaller than most online calculators show.

An example with a salary of AED 30,000

A resident earns AED 30,000 a month. Half of that is AED 15,000, so all debt repayments must stay under AED 15,000 a month.

• With no other debts, the bank can lend about AED 2.06 million.
• With credit cards that have total limits of AED 100,000, the bank can lend about AED 1.38 million.

Banks usually count 5% of your total credit card limit as a monthly repayment. In this example, cards that the buyer does not even use reduce the loan by about AED 690,000. So cancel the cards you do not need before you apply.

Can you get a 100% mortgage in Dubai?

No. You cannot get a 100% mortgage in Dubai. The Central Bank does not allow it. A resident must pay a deposit of at least 20%, and the deposit must be your own money. You cannot use a personal loan or a credit card to pay it.

You also need cash for the fees. Since February 2025, banks no longer add the buying fees to the loan. In total, a resident needs about 28% of the price in cash:

Mortgage Companies in Dubai: Banks, Brokers and How to Choose

You can get a mortgage in Dubai in two ways: directly from a bank, or through a mortgage broker. Under Dubai's mortgage law, the lender must be a bank or finance company that has a licence from the Central Bank of the UAE.

Banks that give home loans in Dubai

Most large UAE banks give home loans. This table shows what five of them publish on their websites.

The Dubai Land Department also runs a First-Time Home Buyer programme with five partner banks. It is open to UAE residents of any nationality who do not own a home in Dubai and are buying a home under AED 5 million. The programme promises better rates and fees, but it does not publish them. Ask the bank for its programme offer in writing.

Mortgage brokers and consultants

A mortgage broker compares banks for you and helps with the paperwork. Brokers are also called mortgage consultants or mortgage advisers. Mortgage Finder is one well-known broker in Dubai, and there are many others.

A broker is most useful when your case is not simple. For example, you are self-employed, you changed jobs recently, or you live abroad. Brokers are often paid by the bank, not by you. So ask the broker two questions: how are you paid, and which banks do you not work with?

How to choose the best mortgage in Dubai

The best mortgage is the one that costs you the least over the years you keep it. Ask each bank for a written offer, then compare four numbers:

• The fixed rate, and how many years it lasts.
• The margin after the fixed years. This decides what you pay for most of the loan.
• The fees to set up the loan.
• The insurance cost each month.

A loan with a slightly higher fixed rate and a lower margin often costs less in the end.

How to Get a Mortgage in Dubai

Getting a mortgage in Dubai takes about six to ten weeks from the day you agree to buy a home. Follow these steps in order:

1. Check your credit report. The Al Etihad Credit Bureau keeps a record of your loans and payments. Banks read it, so read it first and fix any mistakes.
2. Get a pre-approval. This is the bank's first answer. It tells you how much the bank is likely to lend, and it is usually valid for 60 days.
3. Find a home and agree the price. You and the seller sign the sale contract, which is called Form F. Add a line that says the sale depends on your loan.
4. Let the bank value the home. The bank sends a valuer to decide what the home is worth.
5. Sign the final loan offer. Read the margin, the fees and the insurance before you sign.
6. Transfer the home. You, the seller and the bank meet at a Dubai Land Department office. The bank pays the seller, and the home is registered in your name.

Documents you need for a home loan in Dubai

You need these documents to apply:

• your passport, and your residence visa and Emirates ID if you live in the UAE
• a salary certificate from your employer
• bank statements for the last six months
• details of your other loans and credit cards

If you are self-employed, you also need your trade licence and two years of audited accounts. The full list for the purchase is in our guide to the documents you need to buy property in Dubai.

Mortgage Costs and Fees in Dubai

A mortgage in Dubai has costs on top of the interest. Plan for these five costs:

• Bank arrangement fee. This is usually 1% of the loan, plus VAT.
• Valuation fee. This is about AED 2,600.
• Mortgage registration fee. The Dubai Land Department charges 0.25% of the loan.
• Life insurance. The bank requires it. One large broker says it costs about AED 200 to AED 350 a month for each AED 1 million you borrow.
• Property insurance. The bank requires this too.

There is also a fee if you repay the loan early or move to another bank. The Central Bank limits this fee to 1% of the amount you still owe, or AED 10,000, whichever is lower.

The costs of buying the home itself are separate. The biggest is the 4% fee of the Dubai Land Department. See our guides to the cost of buying property in Dubai and DLD fees.

Off-Plan Mortgage in Dubai

An off-plan mortgage is a loan for a home that is not built yet. You can get one in Dubai, but the rules are stricter. The Central Bank limits the loan to 50% of the price, so you must pay the other half yourself.

You pay your own half first. The bank then pays the developer in stages, as the building work moves forward.

Fewer banks offer off-plan mortgages than normal mortgages. ADCB launched one in April 2026, and we explain it in our article on ADCB's off-plan mortgage. Many buyers use the developer's payment plan and not a bank loan. Our guide to off-plan payment plans in Dubai compares the two.

Islamic Mortgage in Dubai

An Islamic mortgage lets you buy a home without paying interest. It is also called Islamic home finance. The Central Bank applies the same limits to Islamic home finance as to normal mortgages. So the deposit, the income limits and the 25-year limit do not change.

The most common type is called Ijarah. It works in three steps:

1. The bank buys the home.
2. You pay the bank rent every month.
3. When you have made all the payments, the bank transfers the home to you.

The bank charges a profit rate, not an interest rate. In practice the profit rate follows the market in the same way. Dubai Islamic Bank, for example, sets its profit rate as EIBOR plus a margin. So compare an Islamic offer with a normal offer using the same four numbers.

What Can Go Wrong With a Mortgage in Dubai

Most problems happen after the pre-approval, when the bank does its full checks. Knowing them early can save your deposit.

Is it difficult to get a mortgage in Dubai?

It is not difficult to start. A pre-approval is quick. But a pre-approval is not a promise. HSBC UAE says its first approval "isn't a guarantee that we'll definitely be able to lend you the money". The bank can still say no, or offer less, after it checks the home and your credit report.

Why banks reduce or refuse a loan

Here is an example of the first problem. You agree to pay AED 2,000,000. The bank values the home at AED 1,900,000. The bank lends 80% of the lower figure, so your loan falls by AED 80,000. You must find that money in cash, usually in a few days.

If you cannot pay your mortgage

Talk to your bank before you miss a payment. Banks can sometimes change the payment plan, but they do not have to.

If you stop paying, the bank cannot simply take the home. Dubai's mortgage law sets out the steps the bank must follow:

1. The bank must give you 30 days' written notice through a notary.
2. The bank can then ask a court to sell the home at a public auction.
3. If the sale does not cover the loan, you still owe the rest.

If you lose your job, the UAE's unemployment insurance pays 60% of your basic salary for up to three months. That is rarely enough to cover a mortgage, so keep savings for a few months of payments.

If you leave the UAE

You can leave the UAE and keep your mortgage, as long as you keep paying. Tell your bank a few months before you go. If you leave and stop paying, you still owe the money. The bank can take you to court in the UAE, and a court can order a travel ban against you.

Should You Take a Mortgage in Dubai?

A mortgage in Dubai makes sense when you can afford the payment after the fixed years, not only during them.

A five-minute check before you sign

Do this check on any mortgage offer:

1. Find the margin that applies after the fixed years.
2. Find today's EIBOR on the Central Bank's website.
3. Add the two numbers together. This is your real rate.
4. Use the calculator table in this guide to find your monthly payment at that rate.

If the offer does not show a margin, ask the bank for it. Every bank must give you the full cost of the loan in writing.

For the next steps, read our guide to buying property in Dubai and how to buy property in Dubai.