About this calculator
Most countries test a mortgage once. The UAE tests it three times, and all three tests come from the Central Bank’s mortgage framework. The loan-to-value cap fixes the minimum down payment by residency, value and property number. The debt-burden ratio (DBR) caps every dirham of debt payment you carry — this mortgage plus car loans, personal loans and credit-card commitments — at 50% of your monthly income. And total borrowing is capped at seven times annual income for expatriates and eight times for UAE nationals. Your maximum mortgage is the smallest figure the three tests produce.
Which test binds is predictable in outline: on an ordinary apartment the DBR usually bites first, because a 25-year repayment on 80% of the price eats half a salary fast once a car loan is inside the ratio; on an expensive property the LTV tier flips and the deposit requirement becomes the wall; the income multiple mostly matters at the extremes of term and rate. Credit cards are the hidden trap — banks commonly count around 5% of your card limits as a monthly commitment inside the DBR, whether or not you carry a balance, so clearing limits before applying can raise your ceiling more than a pay rise.
How to use it
- Enter your monthly salary and every other monthly debt payment — include an estimate of 5% of your credit-card limits, as many banks do.
- Set your residency, property number and ready/off-plan status: together with the price they fix the LTV tier.
- The results show the maximum loan, which test set it (in the table), and the deposit your target price demands.
- Work backwards: the "most expensive property" line converts your loan ceiling back into a searchable price at your LTV tier.
The formula
On a AED 35,000 salary with AED 2,000 of other debts, the DBR leaves AED 15,500 a month for a mortgage payment — at 4.5% over 25 years that supports AED 2,788,610. The income cap allows AED 2,940,000. But against an AED 1,800,000 first property the 80% LTV cap allows only AED 1,440,000 — so for the defaults on this page the deposit rule binds, and the buyer needs AED 360,000 down plus fees. Raise the price towards AED 3.5 million and the DBR takes over as the binding test.
Worked example
An expatriate earning AED 35,000 a month with a AED 2,000 car payment, buying a ready AED 1,800,000 first home at 4.5% over 25 years: LTV test AED 1,440,000, DBR test AED 2,788,610, income test AED 2,940,000 — maximum mortgage AED 1,440,000, deposit AED 360,000. A UAE national on the same numbers clears the LTV test at 85% (AED 1,530,000) and the income test at eight times (AED 3,360,000), so the national’s ceiling is AED 90,000 higher on this property.
Sources: Central Bank of the UAE Mortgage Loans Regulation (Notice 226/2013, as amended 2020): LTV tiers, the 50% debt-burden ratio, the income-multiple borrowing caps and the 25-year term limit, current October 2026. Last updated: October 2026.
Frequently asked questions
What exactly counts inside the 50% debt-burden ratio?
Every recurring debt payment: the new mortgage, existing home or personal loans, car finance, and credit cards — where banks typically impute about 5% of the approved card limit per month regardless of the balance. Some lenders also count rent during the assessment. The ratio is calculated on verified income; allowances and variable pay are counted in full by some banks and discounted by others.
Is the 7× / 8× income cap really enforced?
It sits in the Central Bank’s mortgage framework alongside the LTV caps and the DBR, and banks apply it to total borrowing, not just the new mortgage. In practice the DBR binds earlier for most borrowers at today’s rates, which is why the multiple is less famous — it becomes the binding test mainly for borrowers with little other debt choosing shorter terms or when rates fall.
Can I count rental income or a spouse’s salary?
Yes, within bank policy: a spouse’s income can be counted on a joint application, and proven rental income is usually counted at a discount (commonly 50–80%) for subsequent properties. Both shift the DBR and income-multiple tests, not the LTV cap. Self-employed applicants are assessed on audited accounts and bank statements, typically over two years.
Does the DBR use the teaser rate or the follow-on rate?
Most banks assess affordability at the rate you will actually start on, and prudent ones stress above it; the framework expects the loan to remain affordable when the fixed period ends. When you model it yourself, run this calculator at the follow-on rate (EIBOR plus margin) as well as the fixed rate — the gap between the two answers is your refinancing risk.
How long do I need to have been employed?
Bank policy rather than regulation: typically a minimum of six months with your current employer (or a confirmed contract), a salary history landing in a UAE account, and an AECB credit score in good standing. New arrivals with a strong overseas profile can sometimes borrow sooner, but the Central Bank caps apply identically.
What formula does this uae mortgage affordability calculator — ltv, dbr & income caps calculator use?
Max loan = min(price × LTV cap, annuity value of (50% × monthly income − other debts), 7 or 8 × annual income) On a AED 35,000 salary with AED 2,000 of other debts, the DBR leaves AED 15,500 a month for a mortgage payment — at 4.5% over 25 years that supports AED 2,788,610. The income cap allows AED 2,940,000. But against an AED 1,800,000 first property the 80% LTV cap allows only AED 1,440,000 — so for the defaults on this page the deposit rule binds, and the buyer needs AED 360,000 down plus fees. Raise the price towards AED 3.5 million and the DBR takes over as the binding test. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.