UAE Definition

What is LTV Ratio? UAE Mortgage Rules Explained

LTV, or loan-to-value, is the ratio between the mortgage amount and the value of the property. In the UAE, it is not just a bank preference. It is part of the borrower-based control framework published by the Central Bank of the UAE. For buyers, LTV is the rule that answers the real question: how much can I borrow, how much cash must I bring, and how much extra cash is needed on top of the down payment for DLD, agent, and mortgage costs?

Featured answer

According to the CBUAE's published borrower-based controls, expatriates buying a first owner-occupied home worth AED 5 million or less are capped at 80% LTV, while UAE nationals in the same bracket are capped at 85%. Off-plan schemes are capped at 50% LTV for both groups. The mortgage-loans rulebook also states the maximum tenor of the mortgage loan is 25 years.

CBUAE LTV table buyers should know

BorrowerProperty ValueMax Ltv
UAE national - first house / owner occupierAED 5m or less85%
UAE national - first house / owner occupierAbove AED 5m75%
UAE national - subsequent propertyAny65%
UAE national - off-planAny50%
Expatriate - first house / owner occupierAED 5m or less80%
Expatriate - first house / owner occupierAbove AED 5m70%
Expatriate - subsequent propertyAny60%
Expatriate - off-planAny50%

How LTV works in real money

If an expatriate buyer is purchasing a first owner-occupied home in Dubai for AED 2,000,000, an 80% LTV cap means the maximum loan is AED 1,600,000 and the minimum equity contribution is AED 400,000. That is only the property-equity piece. The buyer still needs transaction cash on top, including DLD registration, broker fee if applicable, and mortgage registration. That distinction became more important after the February 2025 financing change reported in UAE media, which said banks would no longer finance DLD and broker fees inside mortgage packages.

Why the February 2025 fee-financing change matters

The CBUAE's public framework confirms the property LTV caps. Separately, major UAE reporting in January 2025 said banks were instructed from 1 February 2025 not to finance the 4% DLD fee and the 2% brokerage commission inside mortgage packages. The practical effect is that LTV no longer tells the full cash story by itself. Buyers should budget two pools of money: down payment equity and transaction cash on top.

Step-by-step: how to calculate the cash you actually need

  1. 1

    Identify your borrower category

    Start with nationality and whether the property is first owner-occupied, subsequent, or off-plan.

  2. 2

    Apply the correct CBUAE LTV cap

    Use the published CBUAE maximum that matches your case.

  3. 3

    Calculate the minimum equity contribution

    Property value minus maximum loan equals the minimum down payment.

  4. 4

    Add transaction cash on top

    Separately budget DLD registration, brokerage if payable, mortgage registration at 0.25% of loan value, valuation, and any legal costs.

  5. 5

    Check tenor

    The mortgage-loans rulebook states the maximum tenor is 25 years; a longer desired tenure is not available under the mortgage-loan framework.

Worked examples

ScenarioMax LtvMax LoanMinimum Down PaymentCash On Top Note
Expat, first owner-occupied home, AED 2,000,000 purchase80%AED 1,600,000AED 400,000Add DLD, brokerage if applicable, mortgage registration, valuation, and related costs separately
Expat, off-plan purchase, AED 2,000,00050%AED 1,000,000AED 1,000,000Off-plan LTV is materially tighter and still does not replace registration and transaction costs

Fees LTV does not include

  • DLD sale registration charges
  • Brokerage commission where applicable
  • Mortgage registration fee at 0.25% of mortgage value on DLD mortgage services
  • Bank valuation and arrangement costs
  • Legal review costs

Common mistakes

  • Treating LTV as if it already includes DLD and broker fees.
  • Using the first-home cap for a subsequent property scenario.
  • Assuming off-plan is financed like a ready property. The published cap is 50%.
  • Ignoring the 25-year maximum tenor when modelling affordability.

Need a mortgage-readiness check?

If you are close to buying, get a mortgage adviser to model the down payment, DLD, mortgage registration, and bank conditions together rather than looking at LTV in isolation. This page is informational only and is not lending or legal advice.

References

Informational only. Banks can apply their own underwriting standards within the regulatory framework. Always verify the live CBUAE rules, your bank's policy, and the transaction-cost stack before committing.

Frequently Asked Questions

It means the percentage of the property's value that the lender is willing to finance.

Based on the CBUAE's published borrower-based controls, the cap is up to 80% for a first owner-occupied home worth AED 5 million or less, 70% above AED 5 million, 60% for subsequent property, and 50% for off-plan.

The published CBUAE cap is 50% for off-plan schemes.

Buyers should not assume that. Major UAE reporting in January 2025 said banks were instructed from 1 February 2025 not to finance DLD and broker fees inside mortgage packages.

PT

PropertyWiki Team

Editorial Team

Published: April 1, 2026

Updated: April 1, 2026

The PropertyWiki editorial team brings together real estate experts, legal advisors, and market analysts to provide comprehensive property guidance for international investors.