Frequently Asked Questions
Comprehensive answers to 35+ common questions regarding UAE mortgage regulations, eligibility, fees, and procedures.
Getting Started
Keystones Mortgage is an independent mortgage consultancy based in the United Arab Emirates. We help property buyers and owners understand their borrowing capacity, compare lender criteria across UAE banks, prepare applications, and navigate the home finance process. Keystones Mortgage is not a bank and does not lend money.
A single bank can only present its own internal loan products, proprietary underwriting guidelines, and fixed margins. An independent consultancy assesses the broader UAE lending landscape, matching your specific employment, income profile, and property type to the most suitable lender criteria across conventional and Islamic institutions.
No. All lending decisions, interest or profit rates, underwriting approvals, and facility conditions are determined solely by the licensed mortgage lenders and banks in accordance with their internal credit policies and Central Bank guidelines.
Eligibility
Most UAE banks set minimum monthly income requirements between AED 10,000 and AED 15,000 for salaried expatriates, although select institutions consider applicants earning from AED 8,000. For UAE Nationals, minimum income thresholds typically start around AED 10,000.
Under Central Bank of the UAE regulations, total monthly debt servicing commitments—including personal loans, auto loans, mortgages, and 5% of assigned credit card limits—cannot exceed 50% of your gross monthly verified income.
Under Central Bank regulations, the maximum mortgage tenure is 25 years. However, loans must mature by retirement age: typically age 65 for salaried expatriates, and age 70 for UAE Nationals and self-employed applicants. For example, a 45-year-old salaried expat qualifies for a maximum tenure of 20 years.
Most UAE lenders require completion of the statutory 6-month probation period before issuing formal approvals. However, select banks consider applicants on probation if they have an unbroken prior employment track record in the UAE or international transfer within the same corporate group.
Down Payments & LTV
Under CBUAE rules, expatriates purchasing their first residential property valued up to AED 5 million require a minimum down payment of 20% (maximum 80% LTV). For properties above AED 5 million, the minimum down payment increases to 30% (maximum 70% LTV).
UAE Nationals purchasing their first home require a minimum down payment of 15% for properties up to AED 5 million (85% LTV) and 25% for amounts exceeding AED 5 million (75% LTV).
For a second or subsequent home, Central Bank regulations cap the mortgage at 60% LTV for expatriates (40% down payment) and 65% LTV for UAE Nationals (35% down payment).
No. Central Bank regulations strictly prohibit using borrowed funds for the statutory mortgage down payment. Down payment funds must represent personal equity and savings verified through banking records.
Costs & Fees
The DLD property transfer fee is 4% of the property purchase price plus an administrative fee of AED 580. Additionally, registering a mortgage incurs a DLD mortgage registration fee of 0.25% of the loan amount plus AED 290 in administrative charges.
For ready properties, the DLD-authorized Registration Trustee charges AED 2,000 + 5% VAT for transactions below AED 500,000, and AED 4,000 + 5% VAT for properties valued at AED 500,000 and above.
An independent property valuation conducted by a bank-approved surveyor typically costs between AED 2,500 and AED 3,500 plus 5% VAT.
Rates & EIBOR
EIBOR (Emirates Interbank Offered Rate) is the daily benchmark interest rate set by the Central Bank. In variable-rate mortgages, your rate is calculated as EIBOR plus the bank margin. When EIBOR shifts, your variable monthly payment adjusts accordingly.
Yes. Fixed rates generally protect your payment for 1 to 5 years. After that period, your mortgage typically transitions to a variable rate tied to prevailing EIBOR plus the lender margin, meaning payments will rise if EIBOR increases.
Some lender contracts include a minimum interest or profit rate floor (e.g. 3.50%). Even if EIBOR drops significantly, your variable rate cannot fall below that contractual floor.
Off-Plan
Under CBUAE rules, bank financing for off-plan property is capped at 50% LTV. Most retail banks prefer to provide financing upon project completion and handover rather than funding early construction stages.
Handover finance is a mortgage arranged to pay off the final developer completion installment (often 40% to 50% of the purchase price) when construction is complete and the building obtains its completion certificate.
Refinancing & Buyouts
The Central Bank of the UAE caps early settlement penalties at 1% of the outstanding loan balance or AED 10,000, whichever amount is LOWER.
A Liability Letter is an official statement from your existing bank showing the exact outstanding loan balance required to discharge the mortgage charge. It is required by the incoming lender to process a balance transfer.
Islamic Finance
Islamic home finance avoids interest (riba) by utilizing Sharia-compliant lease (Ijara), diminishing partnership (Musharaka), or cost-plus sale (Murabaha) structures. The bank earns an agreed profit rate rather than charging compounding interest.
Yes. All Islamic banks and finance companies are fully regulated by the Central Bank of the UAE and must comply with the same consumer protection rules, DBR limits, and LTV caps as conventional lenders.
Non-Residents
Yes. Overseas international buyers can obtain non-resident mortgages to buy ready property in designated UAE freehold zones. LTV limits are generally capped at 50% to 60%.
Non-residents must supply valid passports, proof of overseas residential address, 6 to 12 months personal and business bank statements, tax returns or audited financials, and a credit report from their home country credit agency.
About Keystones Mortgage
No. Keystones Mortgage is an independent mortgage consultancy. We provide advisory, eligibility review, and documentation preparation services. We do not accept deposits, hold client funds, or lend money directly.
No. This website does not collect, process, or store personal financial data, and contains no online application or inquiry forms. All calculators run client-side in your web browser.
Complaints & Sanadak
Consumers should first submit a formal written complaint through their bank internal complaints management unit. If the complaint remains unresolved after 30 business days or the outcome is unsatisfactory, consumers can escalate the dispute to Sanadak (sanadak.gov.ae), the official independent financial ombudsman established under the Central Bank of the UAE.
Explore Your UAE Mortgage Options
Run your figures privately with our interactive browser-only calculators or review regulatory eligibility criteria before submitting your application.