Dubai Mortgage Guide 2025: Residents vs. Non-Residents

Securing a mortgage in Dubai has never been more accessible, yet the landscape remains distinct depending on your residency status. Whether you live in the UAE or are investing from abroad, understanding the 2025 mortgage framework is essential to maximizing your purchasing power.

In 2025, banks have become increasingly competitive, offering lower fixed-rate periods and more flexible terms to attract borrowers. However, the rules of engagement differ sharply for Residents versus Non-Residents.

1. Interest Rates in 2025

As global inflation stabilizes, UAE mortgage rates have found a new equilibrium.

Current Trends: Fixed rates typically start from 3.89% to 4.29% for 3-year or 5-year fixed terms. Following the fixed period, rates usually revert to EIBOR + a bank margin (typically 1.5% - 2%).

Note: Non-residents may see rates 0.5% - 1% higher than residents due to the perceived higher risk profile.

2. Loan-to-Value (LTV) Ratios

The LTV ratio dictates how much down payment you need. This is the biggest hurdle for most buyers.

• For UAE Residents (Expats) • Properties under AED 5 Million: Up to 80% LTV (20% Down Payment)
  • Properties over AED 5 Million: Up to 75% LTV (25% Down Payment)
• For Non-Residents • Generally: 50% LTV (50% Down Payment)
  • Select Banks (e.g., ADCB, ENBD): May offer up to 60-75% for specific profiles, but vetting is strict.

3. Eligibility Criteria

Documentation is key. UAE banks are thorough but efficient if your paperwork is in order.

Residents: You generally need a salary transfer to the bank to get the best rates. Minimum salary requirements start around AED 15,000/month, though premium banking relationships often require AED 25,000+.

Non-Residents: Banks will scrutinize your home country bank statements (usually 6 months) and credit reports. The minimum monthly income requirement is higher, often equivalent to AED 25,000 - 30,000. You must prove the source of funds for the down payment to comply with anti-money laundering (AML) regulations.

"Leverage is a powerful tool in real estate. By using a mortgage, you can acquire a higher-value asset and potentially achieve a higher Cash-on-Cash Return compared to paying 100% cash."

Top Banks for Mortgages

Based on current offers in 2025, the following banks are leading the market:

• FAB (First Abu Dhabi Bank): Competitive rates for residents.
• Emirates NBD: Broad options for non-residents.
• Standard Chartered: Excellent for international clients.
• ADCB: Flexible terms for self-employed individuals.

Before house hunting, getting a Pre-Approval is crucial. It costs nothing, lasts for 60 days, and gives you a clear budget, strengthening your negotiating position with sellers.