Glossary
UAE mortgage terms, in plain English
23 terms you meet between the first call and the keys, with the figures UAE banks use.
Reviewed 13 October 2026 by Nazar Verbytskyy, Founder & CEO, Lenty (DED Trade License 1565247)
Cash to close
The cash a buyer needs on the day of transfer: the down payment plus the fees banks don't finance — the DLD transfer fee, the agent's commission, trustee, mortgage registration, valuation and the bank's processing fee. For a resident expat buying a first, ready AED 2,000,000 apartment it is about AED 542,000.
LTV (loan-to-value)
The share of the property price a bank will lend. In the UAE an expat buying a first home can borrow up to 80% (70% above AED 5,000,000), a UAE national 85% (75%), and 60%–65% on further homes. Non-residents usually get 50–60%; off-plan property is capped at 50%.
Down payment
The part of the price the buyer pays from their own money: 100% minus the LTV. For a resident expat's first home up to AED 5,000,000 that is at least 20%; for non-residents usually 40–50%. It comes on top of the fees banks don't finance.
DBR (debt burden ratio)
All monthly loan repayments as a share of monthly income. UAE banks cap it at 50%, counting the new mortgage, car and personal loans, and 5% of every credit-card limit even if the card is unused. A DBR above the limit is one of the most common reasons for a decline.
Credit-card limit rule
UAE banks count 5% of your total credit-card limit as a monthly payment when they calculate your debt burden, whether or not you use the cards. Closing or lowering unused cards before applying can raise the amount you can borrow.
Stress rate
A higher interest rate the bank uses to test affordability, so the payment still fits if rates rise. The illustrative stress rate in our calculators is 7.5%. The loan is approved only if the payment at that rate keeps your debt burden within the limit.
DLD transfer fee
The Dubai Land Department fee for registering a property purchase: 4% of the price plus about AED 580. Since 1 February 2025, under UAE Central Bank rules, banks don't finance it, so it is paid in cash. On off-plan property it is paid at Oqood registration.
Trustee fee
The fee of the registration trustee office that handles the transfer: about AED 4,000 plus VAT for properties above AED 500,000, and AED 2,000 plus VAT below that.
Mortgage registration fee
The Dubai Land Department fee for registering the bank's mortgage on the property: 0.3% of the loan amount plus about AED 290. It is paid again when a mortgage moves to another bank in a buy-out.
Agent commission
The real-estate agent's fee on a resale purchase, usually 2% of the price plus 5% VAT. Since 1 February 2025, under UAE Central Bank rules, banks don't finance it. On off-plan purchases from a developer it is usually not charged to the buyer.
Valuation gap
The difference when the bank's valuation comes in below the agreed price. The bank lends on the lower figure, so the buyer pays the gap in cash on top of the down payment. A valuation costs about AED 3,000 and is ordered by the bank.
Pre-approval
The bank's written confirmation of how much it will lend you, issued before you choose a property. It is valid 30–60 days depending on the bank and lets you make an offer with confidence. The final offer letter follows after the valuation.
Oqood
The Dubai Land Department register for off-plan property. A buyer's off-plan purchase is recorded in Oqood until completion, when it becomes a title deed. Banks finance off-plan units only once they are registered in Oqood.
Handover payment
The final payment due to the developer when an off-plan property is completed. Buyers often finance it with a mortgage, which has to be in place before the developer's deadline; valuation, documents and pre-approval all have expiry dates, so it is planned backwards from the due date.
EIBOR
The Emirates Interbank Offered Rate, the benchmark for variable UAE mortgage rates. A variable rate is usually 3-month EIBOR plus a bank margin of about 1.5–2.25%. Fixed rates, typically for 1–5 years, revert to an EIBOR-based rate when the fixed period ends.
Salary transfer loan
A mortgage where your salary is paid into the lending bank. Banks usually price it lower than a non-salary-transfer loan and may accept a lower minimum income. It is one reason two borrowers at the same bank can pay different rates.
Low-doc mortgage
A mortgage for self-employed borrowers assessed on bank statements or VAT returns instead of audited accounts. Banks usually look at 6–12 months of credits and average balances and lend a lower share of the price, typically 50–65%.
Equity release
A loan against a property you already own, usually up to 50–70% of its value minus any outstanding mortgage. In Dubai larger amounts are normally paid to a seller or contractor, so it is mostly used as the down payment for the next purchase.
Buy-out
Moving a mortgage to another bank, usually for a lower rate. Most banks want 3–6 months of repayments first. The current bank charges early settlement of 1% of the balance or AED 10,000, whichever is lower, and the new mortgage is registered again.
Early settlement fee
The fee for repaying a mortgage early, fully or in part. In the UAE it is capped at 1% of the outstanding balance or AED 10,000, whichever is lower. Many banks also allow a free partial prepayment each year.
AECB credit report
The report and score from Al Etihad Credit Bureau, the UAE credit bureau. Banks check it for every application; each check shows as an enquiry. A higher score can mean a higher LTV, and an old forgotten card is a common reason for a decline.
Non-resident mortgage
A UAE mortgage for buyers who live abroad. Banks usually lend 50–60% of the price, want income of about AED 25,000 a month or more in a major currency, and require the loan to be repaid by 65. Most of the process can be done remotely.
Co-borrower
A second applicant whose income is added to yours, most often a spouse; some banks accept a parent, child or sibling. A younger co-borrower can also extend the term when the main applicant is close to the age limit of 65 or 70.
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