Buying a home is one of the biggest financial decisions you will make. A good mortgage can make it manageable; the wrong one can stretch your budget for years. We help you understand what you can borrow, compare offers from several banks and move from pre-approval to transfer with a clear plan.
What the financing covers
Residential mortgage financing can be used to buy a studio, apartment, townhouse or villa, whether ready or, with some banks, off-plan. Conventional and Islamic options are available, and repayment can extend up to 25 years depending on the bank's terms and your age at the end of the financing.
Down payment and financing limits
Contrary to some advertising, a down payment is required. The UAE Central Bank sets maximum loan-to-value ratios that every bank must respect:
- First home up to AED 5 million: up to 80% for expatriates and 85% for UAE nationals.
- First home above AED 5 million: up to 70% for expatriates and 75% for UAE nationals.
- Second and subsequent homes: up to 60% for expatriates and 65% for UAE nationals.
- Off-plan property: up to 50% of the value.
On top of the down payment, plan for transfer and registration fees at the land department, valuation and bank processing fees, and agency fees where applicable. Banks normally require these to be paid from your own funds.
How instalments are set
Instalments are based on your monthly income and the bank's criteria. Central Bank rules cap total monthly debt repayments, including the new mortgage, credit cards and other loans, at 50% of your income. Banks then apply their own stress tests, interest-rate assumptions and minimum salary requirements, which may be stricter.
Fixed or variable rate
Many offers start with a fixed rate for an initial period, then move to a variable rate linked to a benchmark such as EIBOR plus a margin. We explain what happens after the fixed period so you can compare the total cost, not only the first instalment.
Documents usually requested
- Passport, residence visa and Emirates ID.
- A recent salary certificate and six months of bank statements, or business documents for the self-employed.
- Property details, such as the memorandum of understanding or sale agreement.
Who is it for
- Residents and UAE nationals buying their first home.
- Families moving to a larger home or buying a second property.
- Homeowners who want to transfer their mortgage for better terms.
How it works with Lugain Global
- Eligibility check: we review your income, existing commitments and credit record to estimate your borrowing capacity.
- Offer comparison: we compare rates, fees, fixed periods and early settlement terms from several banks.
- Pre-approval: we prepare and submit your file so you can negotiate on a property with confidence.
- Valuation and final approval: once you choose the property, we follow up on valuation and the final offer.
- Transfer: we coordinate with the bank and the trustee office until the title deed is issued.
Important to know
All limits above are maximums; banks may lend less or apply stricter criteria based on your profile and the property. Lugain Global is a financing broker, not a lender, and approval is always at the bank's discretion.