How much you can borrow depends on two separate UAE Central Bank limits: the loan-to-value (LTV) cap, which sets a maximum percentage of the property value a bank can finance, and the debt-burden ratio (DBR) cap, which limits your total monthly obligations to 50% of income. Your actual maximum loan is whichever of these two limits is more restrictive for your specific situation, not simply the higher one. A mortgage stress test, assessing affordability at a higher notional rate, can further reduce the approved amount.
Check your own exact figures with the Mortgage Affordability Calculator - free, in under a minute, no sign-up required.
Frequently Asked Questions
Is the loan-to-value cap the same for every property?
No - it's generally lower for a second or subsequent property purchase, and can differ for off-plan versus ready properties.
Does having existing debt reduce how much I can borrow?
Yes - existing loan and credit card obligations count toward the 50% debt-burden ratio cap, reducing capacity for a new mortgage.
What is the mortgage stress test?
It's an affordability check at a higher notional interest rate than what's actually offered, to protect against future rate increases.
Does a joint application increase borrowing capacity?
Combining incomes for a joint mortgage application can increase the maximum affordable amount, subject to the bank's specific criteria.
How can I check my actual borrowing capacity?
Run the mortgage affordability calculator with your specific income, existing debt and target property value.