Mortgage that works in your best interest.

For a first home under AED 5 million, the minimum down payment is 20% for expats and 15% for UAE nationals. But since February 2025, all transaction fees must be paid upfront and can no longer be rolled into the mortgage. That means you also need to budget for the 4% Dubai Land Department fee, roughly 2% real estate agent commission, bank arrangement fees of around 0.5% of the loan amount, and a property valuation fee.

In total, expect to have around 27–30% of the purchase price in cash before you start — not 20%.

Current fixed rates range from approximately 3.75% to 5.5% per annum for the initial fixed period, which typically lasts 1–5 years depending on the bank and product. After the fixed period ends, the rate switches to a variable rate tied to the EIBOR (Emirates Interbank Offered Rate) plus a bank margin.

The headline fixed rate is only part of the picture. The variable rate that kicks in afterwards — and the terms around early settlement if you want to refinance — matter just as much over the life of a 25-year loan.

A fixed rate locks in your interest rate for an agreed period — usually 1, 2, 3, or 5 years — giving you predictable monthly payments during that time. After the fixed period, the mortgage automatically moves to a variable rate.

A variable rate is calculated as EIBOR (a benchmark interbank rate) plus a fixed margin set by your bank. This means your monthly payment can go up or down as EIBOR moves. Most UAE mortgages are structured as fixed-then-variable, so understanding both phases matters when comparing offers from different banks.

Pre-approval is a formal letter from a bank confirming how much they are willing to lend you, based on your income, employment status, liabilities, and credit profile. It is not a final mortgage offer, but it gives you a reliable borrowing ceiling before you start viewing properties.

The process typically takes 3–7 working days and requires standard documents: passport, Emirates ID, salary certificate, six months of bank statements, and payslips. Pre-approval letters are generally valid for 60–90 days. There is no cost to the applicant.