Most overseas buyers of Dubai property ask the same first question: how much of the price can I borrow? The answer is set by the Central Bank of the UAE (CBUAE), not by individual banks, and it depends on who you are, what you are buying and whether the property is finished. In September 2026 the cost side changed too, when the UAE raised its base rate for the first time this year. Here is where the rules and rates stand as of 2 November 2026.
This guide explains the loan-to-value (LTV) limits for expatriates and investors, why off-plan purchases are treated differently, what the base rate move means for borrowers, and what to check before you commit.
Dubai mortgages at a glance (as of 2 November 2026)
- Expatriate first home (owner-occupier): up to 80% of the value for properties below AED 5 million, and up to 70% above AED 5 million (CBUAE mortgage regulations, Article 3, as quoted by Khaleej Times, 22 February 2026).
- Second home or investment property (expatriates): up to 60% of the value, whatever the price (CBUAE, as quoted by Khaleej Times).
- Off-plan property: up to 50% of the value for every category of buyer (CBUAE, as quoted by Khaleej Times).
- UAE base rate: raised from 3.65% to 3.9% from 17 September 2026 (Gulf News, 16 September 2026), then held at 3.9% on 28 October 2026 (Emirates 24|7).
- Developer payment plans: instalments paid directly to a developer are not bank loans, so the bank LTV caps do not apply to them (Khaleej Times, 22 February 2026).
How much can you borrow to buy property in Dubai?
The Central Bank's mortgage regulations set a maximum loan-to-value ratio: the largest share of a property's value a bank may lend. Everything above that share is your deposit. The rules separate UAE nationals from expatriates, first homes from investment properties, and finished homes from off-plan.
For expatriates, the ratios quoted from Article 3 of the regulations are:
| Type of purchase | Maximum loan | Minimum deposit |
|---|---|---|
| First home, property below AED 5 million | 80% | 20% |
| First home, property above AED 5 million | 70% | 30% |
| Second or later home, or investment property | 60% | 40% |
| Any property bought off-plan | 50% | 50% |
These are ceilings. A bank can lend less, and lenders also look at income, existing debts, age and credit history. Fees, valuation costs and registration charges are normally paid on top of the deposit.
A worked example: AED 2 million apartment
To show how the caps work, take a AED 2 million property. This is a simple illustration of the percentages above, not a quote, and it leaves out interest, fees and charges:
- Finished home, first home, expatriate (80%): maximum loan AED 1.6 million, deposit at least AED 400,000.
- Finished home, investment property, expatriate (60%): maximum loan AED 1.2 million, deposit at least AED 800,000.
- Off-plan purchase (50%): maximum loan AED 1 million, deposit at least AED 1 million.
For an investor buying a second property, the cash needed up front is double that of a first-home purchase. That difference matters when you compare a mortgage-funded purchase with a developer payment plan.
Why off-plan mortgages are capped at 50%
The regulations say that, given the long-term nature of the development process and the higher risk to completion, the maximum LTV on a mortgage for a property bought off-plan is 50% regardless of purpose, value or category of buyer (as quoted by Khaleej Times, 22 February 2026).
In practice many off-plan buyers do not use a bank loan during construction at all. Instead they pay the developer in instalments under a payment plan. According to Khaleej Times legal columnist Ashish Mehta, such plans are not considered bank loans and may fall outside the Central Bank rules, but buyers should read the payment schedule, the handover terms and any finance charges carefully. For the same reason, a claim of "100% financing" attached to a bank mortgage should be treated with caution: the buyer's contribution is mandatory under the Central Bank rules.
What the 2026 base rate rise means for borrowers
On 16 September 2026 the Central Bank of the UAE raised its Base Rate by 25 basis points, from 3.65% to 3.9%, effective 17 September. It followed a similar increase by the US Federal Reserve, because the dirham is pegged to the US dollar (Gulf News, 16 September 2026). On 28 October 2026 the Central Bank held the Base Rate at 3.9% after the Federal Reserve kept its reserve-balance rate unchanged (Emirates 24|7).
The base rate is not the rate on a mortgage. Banks price variable loans off market benchmarks such as EIBOR plus a margin, and fixed rates depend on the lender, the term and your profile, so quotes vary. What the move does show is that rate direction is not guaranteed to be downwards, so test any purchase against a higher monthly payment than today's headline rate.
What it means for buyers and investors
- Plan your cash first. For an investment property, assume a deposit of at least 40% on a finished home and 50% on an off-plan mortgage, plus fees.
- Know which route you are on. A bank mortgage is capped by the Central Bank. A developer payment plan is a contract with the developer. They have different costs, risks and protections.
- Check your residency status. The ratios above are for expatriates. We have not found a published Central Bank limit specific to non-resident buyers abroad, and lenders set their own terms, so ask each bank what it will lend to you before you rely on a figure.
- Stress-test the payment. Rates moved up in September 2026. Check that the repayments, service charges and any void periods would still work at a higher rate.
- Get the terms in writing. Rules are updated by the Central Bank from time to time. Confirm the current LTV, tenor, fees and early-repayment charges with a licensed lender.
If you are comparing buying routes, our guides on Golden Visa eligibility through property and who is buying Dubai property in 2026 may help, or tell us what you are looking for and our team will point you to suitable projects.
Dubai mortgage rules: quick answers
What is the maximum mortgage for an expatriate buying a first home in Dubai?
Up to 80% of the value for a property below AED 5 million and up to 70% above AED 5 million, according to the Central Bank regulations as quoted by Khaleej Times on 22 February 2026.
What deposit do I need for an investment property?
The cap for a second or subsequent home or investment property is 60% for expatriates, so the minimum deposit is 40% of the value, before fees.
Can I get a mortgage on an off-plan property?
The maximum LTV on a mortgage for an off-plan purchase is 50% for all buyers. Many off-plan buyers instead pay the developer through a payment plan, which is not a bank loan.
Did the UAE raise interest rates in 2026?
Yes. The Central Bank raised its Base Rate from 3.65% to 3.9% effective 17 September 2026 and held it at 3.9% on 28 October 2026.
Is 100% financing allowed in Dubai?
Not through a bank mortgage, because the Central Bank requires a minimum buyer contribution. Some developers offer payment plans that spread the price over instalments, which are a different arrangement.
Sources
- Khaleej Times: Questions before buying property: Is 100% financing legal in Dubai?, 22 February 2026
- Khaleej Times: Can you buy property in UAE with no down payment? What the law says, 2 November 2025
- Gulf News: UAE Central Bank raises base rate to 3.9% after US Fed rate hike, 16 September 2026
- Emirates 24|7: UAE Central Bank holds base rate at 3.9% after US Federal Reserve keeps rates unchanged, 28 October 2026
This article is for general information only and is not financial or investment advice. Loan limits are quoted from the Central Bank of the UAE mortgage regulations as published by the sources above; rules and rates can change, so confirm current terms with a licensed lender. Worked examples are illustrations only and do not include fees or interest.