DBR
Debt Burden Ratio
DBR: The CBUAE rule capping a borrower's total monthly debt obligations at 50% of gross monthly income.
What is DBR?
The Debt Burden Ratio (DBR) is a Central Bank of the UAE (CBUAE) regulation limiting a borrower's total monthly debt obligations to 50% of gross monthly income. This includes mortgage EMI, credit card minimums, personal loans, car loans, and any other recurring debt. The DBR ratio is one of two ceilings (alongside Loan-to-Value, LTV) that determines the maximum mortgage a UAE bank will offer. The DBR rule applies to both mortgage approval and the CBUAE stress test (where the mortgage payment is recalculated at the offered rate plus 3 percentage points and the DBR must still be under 50%). DBR is strictly enforced — banks cannot exceed it even for high-income borrowers. The most common reason UAE mortgage applications are downsized or rejected is exceeding the 50% DBR cap (often due to a car loan or credit card balance the applicant forgot to disclose).
Example
An applicant earns AED 30,000/month gross with AED 5,000/month in existing debt (car loan + credit card minimum). DBR room is 50% × 30,000 − 5,000 = AED 10,000. The maximum mortgage EMI the bank can approve is AED 10,000 → ~AED 1.85M loan at 4.5% over 25 years.
FAQ — DBR
Does the DBR include credit card balances or just minimums?+
Just the monthly minimum payment (typically 5% of outstanding balance). High credit card BALANCES don't directly count, but the minimum payment does. Banks often ask applicants to clear high credit card balances before applying.
Can the DBR be exceeded with co-applicants?+
Yes — adding a co-applicant (spouse, family member) combines incomes and debts. Joint applications enable larger mortgages. Most Dubai mortgages are joint applications between spouses.
Related terms
Last refreshed: 2026-05-26