Understanding the maximum Loan-to-Value (LTV) ratio is one of the most important steps when applying for a mortgage in the UAE. Whether you are a first-time buyer or a seasoned investor, knowing how much a bank is willing to finance helps you plan your budget, down payment, and overall property strategy. Working with an experienced mortgage broker in Dubai can help you clearly understand current LTV limits, bank-specific policies, and how your residency status affects your borrowing capacity.
In this guide, we break down the maximum LTV in Dubai, how it works for different buyers, and what factors influence the final percentage you receive.
What Is Loan-to-Value (LTV)?
Loan-to-Value (LTV) is the percentage of a property’s value that a bank is willing to finance. The remaining percentage must be paid by the buyer as a down payment.
For example, if a property is worth AED 1,000,000 and the bank offers an 80% LTV:
- The bank finances AED 800,000
- You must provide AED 200,000 as a down payment
The LTV is regulated by the UAE Central Bank, and all banks operating in Dubai must comply with these guidelines.
Maximum LTV for UAE Nationals
UAE nationals benefit from slightly higher LTV ratios compared to expatriates.
For properties valued at AED 5 million or less:
- Maximum LTV: 85%
- Minimum down payment: 15%
For properties valued above AED 5 million:
- Maximum LTV: 75%
- Minimum down payment: 25%
These higher limits make it easier for Emirati buyers to enter the property market with lower upfront capital.
Maximum LTV for Expats in Dubai
For expatriates, LTV limits are slightly lower.
For properties valued at AED 5 million or less:
- Maximum LTV: 80%
- Minimum down payment: 20%
For properties valued above AED 5 million:
- Maximum LTV: 70%
- Minimum down payment: 30%
This means expats must prepare a larger upfront investment compared to UAE nationals. However, many expats successfully secure financing with proper financial planning and documentation.
LTV for Off-Plan Properties
Off-plan properties (those purchased directly from developers before completion) have slightly different rules.
For off-plan purchases:
- Maximum LTV is typically 50%
Banks consider off-plan properties higher risk, which is why financing is more conservative. Buyers often combine personal savings with payment plans offered by developers.
How Property Value Affects LTV
One important factor many buyers overlook is bank valuation. The LTV percentage is calculated based on the lower of:
- The purchase price
- The bank’s property valuation
If the bank valuation comes in lower than the agreed purchase price, the buyer must cover the difference out of pocket. This can significantly increase the required cash contribution.
For example, if you agree to buy a property for AED 2 million but the bank values it at AED 1.9 million, the LTV applies to AED 1.9 million—not AED 2 million.
Does Income Impact LTV?
While LTV is regulated, your income affects how much the bank is willing to lend overall. Banks also apply a Debt Burden Ratio (DBR), which caps total monthly financial obligations at 50% of your income.
Even if you qualify for an 80% LTV, your income must support the mortgage repayments. If your income is lower, the bank may reduce the loan amount, effectively lowering your usable LTV.
First Property vs Second Property LTV
The maximum LTV applies to a buyer’s first property. However, if you are purchasing a second property, stricter rules apply.
For a second property:
- UAE Nationals: Maximum 65% LTV
- Expats: Maximum 60% LTV
For third and subsequent properties, LTV may drop further to 50%.
This regulation is designed to limit excessive borrowing and reduce market risk.
Mortgage Insurance and LTV
Unlike some countries, mortgage insurance is not commonly used in the UAE to extend LTV beyond regulatory limits. This means buyers cannot typically borrow above the maximum allowed percentage.
Therefore, saving for a proper down payment is essential before entering the Dubai property market.
Additional Costs Beyond LTV
Even if you qualify for the maximum LTV, you must budget for additional upfront costs that are not covered by the loan. These include:
- 4% Dubai Land Department (DLD) fee
- Valuation fees
- Bank processing fees
- Mortgage registration fees
- Real estate agency commission
These costs typically add 6–8% of the property value on top of your down payment.
How to Improve Your Mortgage Approval Chances
While LTV limits are regulated, banks still assess your financial profile carefully. To strengthen your application:
- Maintain a strong credit score
- Reduce existing debts
- Ensure stable employment history
- Prepare complete documentation
Pre-approval is also highly recommended before committing to a property purchase. It gives clarity on your maximum borrowing limit and strengthens your negotiation position with sellers.
Conclusion
The maximum Loan-to-Value (LTV) in Dubai depends primarily on your residency status, property value, and whether it’s your first or subsequent property. Expats can generally borrow up to 80% for properties under AED 5 million, while UAE nationals may qualify for up to 85%.
Understanding these limits allows you to plan your finances effectively and avoid surprises during the mortgage process. With proper preparation, realistic budgeting, and professional guidance, securing a home loan in Dubai becomes a smooth and structured journey toward property ownership in one of the world’s most dynamic real estate markets.