Property Value


What mortgage options are available in the UAE?


Explore the diverse landscape of mortgage options in the UAE, from traditional bank loans to Sharia-compliant financing and government-backed initiatives.

UAE is recognized for its strong economy, diversified culture, and growing real estate market. For many locals and expats, buying a property is a milestone, thus knowing financing alternatives is vital. We will examine UAE mortgage choices in detail in this guide to assist prospective homeowners make educated selections.

Traditional mortgages

UAE traditional mortgages work like those elsewhere. Local and international banks provide these mortgages to qualified applicants. Key characteristics of UAE conventional mortgages:


Standards for Eligibility


Financial institutions usually need a solid income, strong credit, and a down payment of a particular proportion.


Interest Rates


Fixed or variable interest rates. Fixed rates are stable throughout the mortgage term, whereas variable rates vary with the market.


Loan Terms

Typical mortgage maturities are 15–30 years. The longer term, the smaller the monthly payments but the greater the interest.


Islamic Mortgages

Islamic mortgages, also known as Sharia-compliant mortgages, adhere to Islamic finance principles that prohibit the payment or receipt of interest (riba). Instead, these mortgages involve profit-sharing arrangements or the purchase and resale of the property. Key features of Islamic mortgages include:


This involves a partnership between the borrower and the bank, with both parties contributing to the property’s purchase. Profits and losses are shared based on predetermined ratios.



In an Ijara arrangement, the bank purchases the property and leases it to the borrower. The borrower pays rent, with the option to purchase the property at the end of the lease term.


This involves the bank purchasing the property and selling it to the borrower at a higher price, allowing the borrower to pay in installments.

Government-Backed Mortgages

The UAE government has introduced initiatives to support citizens in homeownership. One such initiative is the Sheikh Zayed Housing Programme, which provides interest-free loans and grants to Emirati citizens for housing. Understanding the eligibility criteria and application process for such programs is essential for those who qualify.

Foreigner Mortgages

Expatriates make up a significant portion of the UAE’s population, and many banks offer mortgages specifically designed for non-residents. While the terms may differ from those for citizens, expatriates can still access competitive mortgage rates. It’s crucial for expatriates to be aware of any restrictions and to understand the impact of their residency status on the mortgage terms. Non-residents and foreign nationals also have mortgage options in the UAE. Some banks cater specifically to this demographic, offering tailored mortgage products. However, the terms and conditions for non-resident mortgages may vary, and prospective buyers should carefully review the eligibility criteria and associated costs.

List of Mortgage Providers in UAE

As of my last knowledge update in January 2022, here is a list of some mortgage providers in the United Arab Emirates. Keep in mind that the availability of providers may have changed, and new institutions may have entered the market. It’s advisable to check the latest information from reliable sources or directly contact financial institutions for the most up-to-date details:


  • Emirates NBD
  • Abu Dhabi Islamic Bank (ADIB)
  • Mashreq Bank
  • Dubai Islamic Bank (DIB)
  • First Abu Dhabi Bank (FAB)
  • National Bank of Fujairah (NBF)
  • HSBC
  • Commercial Bank of Dubai (CBD)
  • Rakbank
  • Noor Bank (now part of Dubai Islamic Bank)


Remember to research each provider’s mortgage offerings, interest rates, and terms to find the one that aligns with your financial goals and needs. Additionally, consider consulting with financial advisors or mortgage brokers for personalized guidance.

Factors Influencing Mortgage Options

Several factors influence the mortgage options available to individuals in the UAE. Understanding these factors is essential for making informed decisions during the home buying process

Loan-to-Value (LTV) Ratio

The LTV ratio represents the percentage of the property’s value that the lender is willing to finance. In the UAE, LTV ratios typically range from 70% to 85%. Higher LTV ratios may be available for certain government-backed mortgages or specific borrower profiles.

Interest Rates

The interest rate structure can significantly impact the overall cost of the mortgage. Borrowers can choose between fixed and variable interest rates. Fixed rates offer stability, while variable rates may fluctuate based on market conditions. Prospective buyers should carefully assess their risk tolerance and financial goals when selecting an interest rate type.

Down Payment

Different lenders may require varying down payment percentages. Understanding this upfront cost is crucial for budgeting.

Processing Fees and Charges

Mortgage applications often come with fees, including processing fees and legal charges. Prospective homeowners should be aware of these costs and factor them into their budget.

Pre-approval Process

Getting pre-approved for a mortgage provides a clear understanding of the budget and makes the home-buying process smoother.

Repayment Options

Understanding the flexibility of repayment options, such as making lump-sum payments or paying off the mortgage early, can impact the overall cost of the loan.


Challenges and Considerations

While securing a mortgage in the UAE offers many benefits, there are challenges and considerations to keep in mind While the UAE offers a diverse range of mortgage options, potential homebuyers should be aware of certain challenges and considerations associated with the mortgage process:

Market Volatility

The real estate market in the UAE can be dynamic, and economic fluctuations may impact property values. Market volatility refers to the degree of variation in trading prices within a specific market. It often reflects uncertainty, rapid price fluctuations, and increased risk. Investors closely monitor volatility as it can impact investment decisions, asset pricing, and overall market stability. Traders employ various strategies to navigate and capitalize on market volatility, adapting to changing conditions for optimal portfolio management.

Legal Aspects

Understanding the legal framework of property ownership and mortgages in the UAE is crucial to avoid potential pitfalls. The legal and regulatory landscape for mortgages in the UAE is continually evolving. Changes in regulations can impact mortgage terms and eligibility criteria. Prospective buyers should stay informed about any legal updates that may affect their home financing options.

Currency Fluctuations

Expatriates should be mindful of currency fluctuations, as their income may be in a different currency than the mortgage. As an expatriate-heavy market, currency fluctuations can affect the affordability of mortgage repayments for non-resident buyers. Understanding the potential impact of currency movements is crucial for long-term financial planning.

Prepayment Penalties

Some mortgage agreements in the UAE may include prepayment penalties for borrowers who wish to settle their mortgages before the agreed-upon tenure. It’s essential for borrowers to carefully review the terms of their mortgage agreements to understand any potential penalties.


In conclusion, the UAE offers a diverse range of mortgage options catering to different needs and preferences. Whether opting for a traditional mortgage, an Islamic finance solution, or exploring government-backed programs, prospective homeowners have ample choices. Understanding the intricacies of each option, being aware of eligibility criteria, and considering long-term financial implications are essential steps toward making a sound decision. As the UAE continues to evolve, staying informed about the ever-changing real estate landscape and mortgage market will empower individuals to navigate the path to homeownership successfully.

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