Dubai Mortgage Calculator
Compute monthly EMI, total interest, and required down payment for any UAE property.
Dubai mortgage calculator — quick answer
A Dubai mortgage payment on an AED 1.5M apartment with 20% down (AED 300k), 4.5% fixed rate over 25 years works out to a monthly EMI of approximately AED 6,675 — AED 2.0M in total payments, of which AED 800k is interest. Add ~AED 96,000 in closing costs (4% DLD transfer fee, 2% agent commission, registration) on top of your down payment.
UAE mortgage down payment rules (2026)
Down-payment minimums are set by the Central Bank of the UAE (CBUAE). They scale with the property price, your residency status, and whether it's your first or second property.
- First property, expat resident, under AED 5M — 20% minimum down
- First property, UAE national, under AED 5M — 15% minimum down
- Any property over AED 5M (expat) — 30% minimum down
- Any property over AED 5M (national) — 25% minimum down
- Second or investment property (expat) — 40% minimum down
- Second or investment property (national) — 35% minimum down
- Off-plan property — 50% minimum down
- Non-resident (foreign buyer) — typically 35–50%, bank-dependent
How the EMI formula works
EMI (Equated Monthly Instalment) is calculated using the standard amortization formula:
EMI = P × r × (1+r)^n / ((1+r)^n − 1) P = loan principal (AED) r = monthly interest rate (annual rate / 12) n = total number of months (years × 12)
On an AED 1.2M loan at 4.5% over 25 years: P = 1,200,000, r = 0.00375, n = 300. The calculator yields an EMI of AED 6,675/month, with first-month interest of AED 4,500 and principal of AED 2,175. Over 25 years you pay back AED 2.0M — AED 800k of which is pure interest.
Amortization — interest vs principal over time
Each EMI is the same dirham amount, but the split between interest and principal shifts month by month. Early payments are mostly interest because the outstanding balance is highest; later payments are mostly principal as the balance shrinks. The 50/50 crossover on a 25-year UAE mortgage typically falls around year 13–14.
| Year | Outstanding balance | % paid down | Interest paid YTD |
|---|---|---|---|
| Year 1 | ~1,173,000 | 2.3% | 53,000 |
| Year 5 | ~1,049,000 | 12.6% | 249,000 |
| Year 10 | ~838,000 | 30.2% | 438,000 |
| Year 15 | ~575,000 | 52.1% | 576,000 |
| Year 20 | ~245,000 | 79.6% | 646,000 |
| Year 25 | 0 | 100% | 800,000 |
Based on AED 1.2M loan at 4.5% fixed, 25-year tenor. Real-world UAE mortgages reprice after the initial fixed period — actual interest paid depends on subsequent rate moves.
Fixed vs variable rate — which to pick in 2026
UAE banks offer two main rate types:
- Fixed rate (3.99–4.99% in 2026): locks your rate for 1, 2, 3, or 5 years. Predictable payment, peace of mind. After the fixed period, the loan converts to variable (EIBOR + margin), often at a higher all-in rate. Best when you expect rates to rise.
- Variable rate (EIBOR 3M + 1.5–2.5% margin in 2026 ≈ 5.5–6.5%): floats with 3-month EIBOR. Pay less when EIBOR is low (sub-3%); exposed to rate hikes. Best when you expect rates to fall, or you plan to repay within 3–5 years.
Most 2026 UAE borrowers pick a 3-year fixed as the sweet spot between certainty and flexibility, then refinance or shop the variable rate when it kicks in.
Refinancing your UAE mortgage
Refinancing means moving your existing loan to another bank for a better rate. Worth doing if:
- The new rate is at least 75–100 bps lower than your current rate.
- You have 10+ years remaining on the loan (otherwise the savings don't outrun the fees).
- You qualify under the current bank's DBR + LTV rules at today's property valuation.
Costs: early-settlement fee capped at 1% of outstanding balance or AED 10,000 (CBUAE rule), plus AED 3,000–5,000 in new-bank processing + valuation + DLD mortgage-release fees.
Pre-approval — what to do before house-hunting
A pre-approval letter from a UAE bank gives you a budget ceiling, locks the rate for 60–90 days, and strengthens your offer to sellers. The process:
- Run this calculator + the eligibility wizard to scope the deal.
- Pick 2–3 banks (or use a mortgage broker — typically free for the borrower).
- Submit: passport + Emirates ID + visa + 6 months bank statements + salary certificate + 3 payslips.
- Bank issues pre-approval in 3–10 working days. Letter is valid 60–90 days.
- Once you find a property: bank orders valuation, issues final offer, signs MOU with seller, DLD transfer.
Pair this with the DLD fees calculator for total closing costs and the rental yield calculatorto see if the property's rent covers the mortgage. For full ROI including capital appreciation, use the Dubai ROI calculator.
Dubai Mortgage Calculator — FAQ
What is the minimum down payment for a Dubai mortgage?+
UAE expats need at least 20% down for properties under AED 5M (15% for UAE nationals). Properties over AED 5M require 30% down. Second properties need 40%. Off-plan properties require 50% under CBUAE rules. Non-residents typically need 35–50% depending on the bank.
What are current mortgage rates in the UAE (2026)?+
UAE mortgage rates in 2026 range 3.99–5.49% for fixed-rate products (1–3 year locks) and EIBOR 3M + 1.5–2.5% for variable-rate. UAE nationals on salary-transfer accounts get the lowest rates; non-residents pay a 50–100 bps premium. Check ADCB, Emirates NBD, Mashreq, HSBC, and FAB for current offers.
What is the DBR (Debt Burden Ratio) limit?+
Total monthly debt obligations cannot exceed 50% of monthly gross income for UAE borrowers under CBUAE rules. The mortgage EMI, credit card minimum payments, car loans, and any personal loans all count. The stress test re-runs this calc at your rate + 3 percentage points.
Are there early settlement fees on UAE mortgages?+
Yes. Early settlement (or refinancing to another bank) fees are capped at 1% of outstanding balance or AED 10,000 (whichever is lower) under CBUAE rules introduced in 2018. Partial pre-payment without full settlement usually carries no fee at most banks.
How is the monthly mortgage payment (EMI) calculated?+
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P = loan principal, r = monthly interest rate (annual ÷ 12), and n = total months. On an AED 1.2M loan at 4.5% over 25 years, monthly EMI is approximately AED 6,675 — of which AED 4,500 is interest and AED 2,175 is principal in the first month.
What is amortization and how does it work?+
Amortization is the schedule of how each EMI splits between interest and principal. Early payments are mostly interest; later payments are mostly principal. On a 25-year mortgage, you typically pass the 50/50 crossover point around year 14. Extra payments early on save the most interest.
Fixed or variable rate — which is better in the UAE?+
Fixed rates (3.99–4.99%) lock your payment for 1–3 years, then convert to variable. Best when EIBOR is trending up. Variable rates (EIBOR 3M + 1.5–2.5%) float monthly — pay less when EIBOR is below ~3% but exposed to rate hikes. Most 2026 UAE borrowers pick a 3-year fixed then refinance.
Should I refinance my UAE mortgage in 2026?+
Worth considering if (a) the new rate is at least 75–100 bps lower than your current rate, (b) you have 10+ years remaining on the loan, and (c) the savings exceed the early-settlement fee (max 1% / AED 10,000) plus new bank charges (~AED 5,000). For UAE nationals, a salary-transfer switch often unlocks a 50 bps improvement alone.
How much income do I need for a AED 2M mortgage?+
On an AED 2M loan at 4.5% over 25 years, EMI is approximately AED 11,125. To stay under the 50% DBR cap (and pass the stress test at 7.5%), you need a gross monthly income of roughly AED 28,000–30,000 with no other debts. See the home-loan eligibility tool for personalised numbers.
Can I get a Dubai mortgage with a foreign salary?+
Yes, primarily through HSBC, Standard Chartered, Mashreq Gold, and ADCB Privilege. Banks accept salary in major currencies (USD, GBP, EUR, INR) but typically require attested bank statements and an employer letter. Income is converted to AED at the bank's rate; non-resident LTV is capped at 50–65%.
What is the difference between EMI and interest-only?+
EMI (Equated Monthly Instalment) is the standard product — fixed monthly payment covering both interest and principal. Interest-only is rare in the UAE outside of construction-period off-plan loans; you only pay interest for 1–3 years, then convert to EMI. Total interest over the life is higher under interest-only.
Are insurance and life cover mandatory on a UAE mortgage?+
Yes. CBUAE rules require property insurance (covers building structure) and life-decreasing-term assurance (covers outstanding loan balance if the borrower dies). Combined cost is typically 0.4–0.7% of property value per year, often bundled into the monthly EMI or paid upfront. UAE nationals can sometimes waive life cover.
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