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Free tool · United Arab Emirates

Mortgage calculator for the UAE 2026

Hani · Founder & Tax Data Researcher · ArabTaxCalc

Enter the property price, your income and the bank's rate to see the monthly instalment, the total profit and the yearly repayment schedule. Switch to "How much will the bank lend?" to find the largest loan your salary allows under the rules in the UAE.

Short answer

Example: a property costing 2,000,000 UAE dirhams, financed at 80% (1,600,000) over 25 years at 4.5% reducing, costs about 8,893 UAE dirhams a month, with 1,067,996 in total profit. The maximum financing for expats is 80% for a first home up to 5 million dirhams and 70% above that, and for citizens 85% and 75%. Second home or investment property: 65% for citizens and 60% for expats. Off-plan property: 50%.

Finance details

Not below the regulatory minimum
The reducing-balance rate, not the flat rate
⏩Early repayment
Shortens the term and cuts the profit

Repayment schedule

The yearly schedule appears after you calculate.

How the calculation works

  • Reducing balance: each month the bank charges profit only on what you still owe, so early instalments are mostly profit and later ones mostly principal.
  • Down payment: central banks cap how much of the price a bank may lend (the loan-to-value limit). The rest is your down payment.
  • Salary deduction cap: all your instalments together may not exceed a set share of your income (the debt burden ratio). This decides the largest loan you can get.

Islamic banks call the bank's return "profit" rather than interest; the arithmetic is the same.

Home finance rules in the UAE

  • The maximum financing for expats is 80% for a first home up to 5 million dirhams and 70% above that, and for citizens 85% and 75%.
  • Second home or investment property: 65% for citizens and 60% for expats. Off-plan property: 50%.
  • The maximum term is 25 years, and instalments on all debts may not exceed 50% of income.
  • The loan may not exceed 8 times annual income for citizens and 7 times for expats.
  • Banks set the borrower's age at the last instalment under their own policies (the Central Bank removed the 65 and 70 age caps).
  • Early repayment: The early repayment fee is capped at 1% of the balance or 10,000 dirhams, whichever is lower (excluding VAT).
  • Policy rate: The Central Bank of the UAE raised the base rate to 3.9% from 17 September 2026 (secondary source).

Sources

  1. Central Bank of the UAE: Regulations on Bank Loans and Other Services Offered to Individuals, C 29/2011
  2. Central Bank of the UAE: Mortgage Loans Regulation, C 31/2013
  3. Central Bank of the UAE: 2020 amendment to mortgage financing ratios
  4. UAE government official portal: loans for individuals

Frequently asked questions

How much home finance will a bank give me on my salary?

Choose "How much will the bank lend?" and enter your income and existing instalments. The calculator applies the regulatory salary deduction cap in the UAE and the maximum term, then works out the largest loan and the most expensive property you can buy, with the down payment required.

What is the difference between a flat rate and a reducing rate?

A flat rate is charged on the full original amount for the whole term; a reducing rate is charged only on the balance still owed. So a 3% flat rate equals roughly 5.5% reducing over 5 years. Home finance is usually quoted at a reducing rate, personal finance at a flat rate.

How much is the down payment on a mortgage?

In the UAE: Expat, first home (up to 5 million dirhams): 20%; Citizen, first home (up to 5 million dirhams): 15%; Expat, second home or investment: 40%; Citizen, second home or investment: 35%; Off-plan property (any buyer): 50%.

Is it worth repaying a mortgage early?

The early repayment fee is capped at 1% of the balance or 10,000 dirhams, whichever is lower (excluding VAT). The calculator shows the amount needed to settle after any month and how much you save.

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Results are estimates for information only. Banks set their own rates and fees within these rules, so check the offer you receive.

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