UAE Mortgage Calculator
20% of the home price is paid up front and in cash. Usually at least 20%.
Your Estimated Monthly Payment
4,936 AED
Loan Amount
AED 960,000
Total Interest
AED 1,240,800
Total Payment
AED 2,440,800
Mortgage Payment Breakdown (Amortization)
Check the expansion of your mortgage payments in the UAE. A table displaying the principal vs interest every year is shown below, and the chart demonstrates the decrease in your loan balance.
| Year | Total Payment (AED) | Principal Paid (AED) | Interest Paid (AED) | Remaining Balance (AED) |
|---|---|---|---|---|
| 1 | 108,813 | 48,110 | 60,703 | 1,451,890 |
| 2 | 108,813 | 50,041 | 58,772 | 1,401,849 |
| 3 | 108,813 | 52,041 | 56,772 | 1,349,808 |
| 4 | 108,813 | 54,112 | 54,701 | 1,295,696 |
| 5 | 108,813 | 56,259 | 52,554 | 1,239,437 |
| 10 | 108,813 | 70,412 | 38,401 | 963,205 |
| 15 | 108,813 | 88,920 | 19,893 | 623,490 |
| 20 | 108,813 | 108,813 | 0 | 0 |
Step 1: Enter Loan Amount
Enter the entire amount of borrowing funds necessary for your home acquisition.
Step 2: Select Interest Rate
Among the choices, select an appropriate interest rate that can be fixed or variable
Step 3: Choose Loan Term
You need to decide on your mortgage duration, which will last either 15 years, 20 years, or 30 years.
Step 4: Get Instant Results
The tool shows your monthly payment together with total interest payment and loan repayment breakdown immediately after you input the information.
Mortgage Costs & Rules in UAE (2025 Update)
Down Payment Requirements
- UAE Nationals: minimum 15%
- Expats & Non-Residents: minimum 20%
Typical Interest Rate Ranges
- Fixed-rate mortgages: 3.5% – 4.2%
- Variable-rate mortgages: 3.8% – 5.5%
Hidden Costs to Watch Out For
- DLD registration charges (typically 4 percent in Dubai)
- Bank processing fees (0.5% – 1% of loan)
- Mandatory (as mortgage) life insurance.
- Early repayment charges and valuation.
Buying a Home in Dubai
- Loan Amount: AED 1,500,000
- Interest Rate: 3.5% per annum
- Loan Term: 25 years
- Monthly Payment: AED 7,500
Investment Property in Abu Dhabi
- Loan Amount: AED 2,000,000
- Interest Rate: 4% per annum
- Loan Term: 20 years
- Monthly Payment: AED 10,500
WHAT IS A MORTGAGE
When someone gets a mortgage as a property purchase loan, their lender maintains ownership of the title until the borrower finishes paying off the loan. The UAE offers mortgages to its nationals alongside foreign people who want to buy property through lending solutions that are determined by income level and credit history.
Who Needs a Mortgage
- The purchaser of a property serves as an essential type of mortgage user.
- Real estate investors who buy properties for dual purposes of generating rental earnings and achieving cash value.
- Foreign residents who live in the United Arab Emirates seek property ownership.
Mortgage Loan Types
- Fixed-Rate Mortgage – A Stable interest rate throughout the loan term.
- The interest rate of the Variable-Rate Mortgage adjusts following market trend movements.
- During the initial period of an Interest-Only Mortgage, borrowers only pay interest to the lender regarding their home loan.
Mortgage vs. Renting in UAE
- Renting = freedom, no initial capital.
- Purchasing = growth of assets, cost savings in the long term.
- Making a break-even in Dubai normally takes 7-9 years based on the place of location, and the rent rate..
For Home Buyers
- The calculation enables buyers to estimate their financial reach available before requesting a home loan application.
- A person who studies mortgage calculations achieves comprehension of both total repayment amounts and interest expenses throughout the payment period.
- Different mortgage plans can be properly evaluated through this method.
For Investors
- Assesses rental yield vs. mortgage payments.
- Identifies profitable investment opportunities.
- Calculates potential tax benefits and deductions.
How to Calculate Mortgage for First-Time Buyers
- A down payment should include at least 20% for international patrons, along with 15% for nationals who live in the UAE.
- Homebuyers should select between fixed and variable rate mortgage schemes.
- Additional costs involving insurance together with processing fees need to be incorporated into the calculation.
How to Calculate Mortgage for Expats
- Foreign workers, including expats, gain access to loans covering 80% mortgage financing when they purchase a home.
- Mortgage loans span five to twenty-five years within the UAE.
- Employment verification through salary certificates and work documentation stands as a mandatory procedure for bank approval in several institutions.
How to Calculate Mortgage for Rental Properties
- You must compare your rental earnings and your home loan expenses.
- Factor in property management fees.
- Opt for a home mortgage that provides adaptable methods to repay the loan.
Down Payment Requirements
- UAE Nationals: Minimum 15% down payment.
- Expats: Minimum 20% down payment.
Interest Rate Options
- The interest rate remains unchanged throughout the whole duration of the term under this payment structure.
- The interest rate adjusts through market fluctuations under the Variable Rate mortgage term.
Documents Required
- Passport and Emirates ID
- Salary certificate or proof of income
- Bank statements (3-6 months)
Plan your financial future wisely! Use our UAE Gratuity Calculator to estimate your end-of-service benefits accurately.