Are you trying to figure out how much your monthly mortgage payment will actually be before buying a home in the UAE? If yes, you are not alone; thousands of buyers in Dubai, Abu Dhabi, and other emirates are seeking the clarity, straightforward method of estimating their mortgage cost. The point is that the majority of guides seem confusing, incomplete, or full of technical language that makes the process overwhelming.

Here, you’ll get to know precisely how to work out your mortgage in the UAE in a simplified step-by-step approach, practical illustrations, and UAE-specific regulations that are being followed by the banks.

What Is a Mortgage in the UAE?

This is a property purchase loan that is a long-term loan financed by a bank in the UAE. Instead of paying the full price upfront, you pay monthly installments for 15–25 years, depending on the bank and your eligibility.

A mortgage in the UAE consists of:

Loan amount (what bank lends you)
Down payment (what you pay upfront)
Profit/interest rate (bank’s charge)
Loan tenure (years you take to repay)
Monthly EMI (equated monthly installment)

By computing this correctly you will help you save:

Overspending
Loan rejection
Unmanageable EMI
Unexpected fees

Why Mortgage Calculation Is Important

The majority of buyers are purely concerned about the price of the property. However, banks do not consider the price only, they examine your salary, debt ratio, credit score and EMI capacity.

Knowing your monthly mortgage cost helps you:

Set the right budget
Choose the safest EMI
Compare banks
Get faster approval
Know how much down payment you need

How to Calculate Mortgage in UAE

The process that banks perform is as follows, however it is simplified to simple words.

An Infographics on UAE Mortgage Calculation

Step 1: Identify the Property Price

This is your starting point. Example: AED 1,000,000 apartment in Dubai.

Step 2: Calculate the Required Down Payment (UAE Rule)

The UAE Central Bank has determined down-payment requirements:

For Expats

20 percent down payment in properties less than AED 5 million.
30% of the total properties are over AED 5 million.

For UAE Nationals

15 percent on properties less than AED 5 million.
25% for properties above AED 5 million

Example

For a AED 1,000,000 property:

Expats must pay AED 200,000 upfront
Nationals must pay AED 150,000

Step 3: Determine Your Mortgage Loan Amount

Loan amount = Property price – Down payment

Example (Expats):
AED 1,000,000 – AED 200,000 = AED 800,000 loan

Step 4: Check the Bank’s Profit

In the UAE, this is usually:

2.99% – 5.99% reducing rate

Step 5: Choose Your Loan Tenure

Banks allow:

Up to 25 years for expats
Up to 30 years for UAE nationals (varies by bank)

A longer tenure = lower EMI but more total interest.
A shorter tenure = higher EMI but less interest.

Step 6: Apply the UAE Mortgage Formula

Banks use this

EMI formula: EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where:
P = Loan amount
r = Monthly interest rate
n = Total number of months

You can use our UAE Mortgage Calculator. This tool instantly shows:

EMI
Total interest
Total amount payable
Amortization pattern

Step 7: Add All Extra Mortgage Costs in UAE

Here is the full list:

1. DLD Registration Fee (Dubai Only)

4% of the property price
- AED 580 admin fee

2. Mortgage Registration Fee

0.25% of loan amount
- AED 290 admin fee

3. Bank Processing Fee

0.5% – 1% of loan amount

4. Property Valuation Fee

Usually AED 2,500 – 3,500

5. Trustee Fee

AED 4,200 (approx)

6. Early Settlement Fee

Up to 1% of the remaining loan

Including these it makes a realistic cost of purchasing property in UAE.

Types of Mortgage Rates in UAE

The knowledge of the types of rates enables you to make wiser decisions.

1. Fixed-Rate Mortgage

Same EMI every month
Best during low-rate years
Safe and predictable

2. Variable/Reducing-Rate Mortgage

Changes with market conditions
EMI adjusts yearly
Is able to be either cheap or expensive.

3. Hybrid Mortgage

First few years fixed
Remaining years variable
Good for long-term buyers

Eligibility for Mortgage in UAE

1. Minimum Salary Requirement

Bank	Minimum Salary
Emirates NBD	AED 10,000
ADCB	AED 8,000
FAB	AED 15,000
RAKBANK	AED 10,000

2. Age Limit

Minimum 21 years
Maximum:
- 65–70 for salaried individuals
- 70–75 for self-employed

3. Credit Score

Banks prefer 700+
Under 650 = risky
Under 600 = mortgage rejection

4. Debt Burden Ratio (DBR)

UAE law requires that:

Your total EMIs must not exceed 50% of your salary

Example:
If salary = AED 10,000
Maximum EMI = AED 5,000

Bank Mortgage Rates Comparison

Comparison table is excellent on search engine and user confidence.

Bank	Profit Rate	Max Tenure	Special Benefits
Emirates NBD	From 3.25%	25 years	Salary transfer benefits
ADCB	From 3.50%	25 years	Quick approval
FAB	From 3.45%	25 years	High loan amount options
Mashreq	From 3.99%	25 years	Low processing fees
DIB	From 3.90%	25 years	Sharia-compliant

Common Mistakes Buyers Make When Calculating Mortgage

It increases trust through highlighting errors.

Avoid these:

Ignoring extra fees
Selection of high EMI without verifying DBR.
Not comparing banks
Lack of knowledge of fixed vs variable.
Failure to utilize a mortgage calculator.
Incorrect estimation of long-term costs.

Frequently Asked Questions

1. How much is the minimum down payment in UAE?

20% for expats, 15% for UAE nationals.

2. What is the maximum mortgage term?

Up to 25 years for expats.

3. Is it possible to obtain an expat mortgage in UAE?

Yes, nearly every big bank will provide mortgages to expats.

4. Does credit score matter?

Yes, banks prefer 700+ for the best rates.

5. What affects my monthly EMI?

Loan amount, tenure, rate, and down payment.

6. What is the mortgage registration fee?

0.25% of loan amount + AED 290.

Final Words

Mortgage calculation in UAE does not necessarily need to be a complex task. Having the knowledge of how down, bank rates, loan tenure, and fees interact, you are able to easily compute your monthly EMI and settle on the most appropriate mortgage plan.

To obtain the best and precise results in a few seconds, a good calculator must be used prior to application. Try the UAE Mortgage Calculator.