Understanding UAE Mortgage LTV Limits

Loan-to-Value (LTV) is the size of your mortgage expressed as a percentage of the property's value or purchase price — whichever the lender considers lower. A mortgage of AED 1.6 million on a property worth AED 2 million is an 80% LTV. The remaining 20% is your deposit, paid from your own funds.

LTV is one of the first limits a lender applies, so it effectively sets the minimum cash you need before any other criteria are assessed.

The UAE Central Bank sets maximum LTV caps for residential property. Broadly, UAE nationals may borrow up to 85% of a property value below AED 5 million (75% above that), and expatriate residents up to 80% below AED 5 million (70% above). For second and subsequent properties the caps are lower — typically around 60–65%.

These caps are indicative and are revised from time to time. Individual lenders may also apply stricter internal limits, particularly for certain property types or borrower profiles.

Several factors move the maximum LTV a lender will offer:

• Residency: non-residents are typically offered lower LTVs, commonly around 60–65%.
• Property value: budgets above AED 5 million generally attract a lower cap (for example 70% rather than 80%).
• Employment: self-employed applicants can face tighter limits depending on how income is evidenced.
• Property type: off-plan, land and commercial property usually carry lower LTV limits than completed residential property.

Your deposit is simply the purchase price minus the mortgage. At 80% LTV on a AED 2 million property, the deposit is AED 400,000. At 70% LTV on the same property, it rises to AED 600,000.

Remember that the deposit is not your total cash requirement. Purchase costs — the Dubai Land Department transfer fee (typically 4%), mortgage registration, valuation and bank processing fees — are paid on top. Budget for these separately.

A Funds Officer can review your profile and confirm the indicative LTV range lenders would apply to your specific circumstances.