Loan-to-Value (LTV) in UAE Mortgage Loans: A Complete Guide

You must be aware of central bank regulations regarding the LTV before applying for your mortgage loan

What is Loan-to-Value (LTV)?

Loan-to-Value (LTV) is the percentage of a property’s value that a bank will finance through a mortgage loan. The remaining balance must be paid upfront by the buyer as the down payment.

Example: If your property is worth AED 1,000,000 and the bank approves AED 800,000, the LTV is 80%. You cover the remaining AED 200,000.

Latest UAE Central Bank LTV Limits

The UAE Central Bank has set maximum LTV ratios to ensure financial stability while supporting home ownership. These updated limits apply across the UAE:

• First-time homebuyers (Expats):
  Up to 80% LTV on properties valued at AED 5 million or less.
  (For UAE National 85%).

• Properties above AED 5 million:
  Maximum 70% LTV regardless of nationality.
  (For UAE National 75%).

• Off-plan properties (under construction) all nationalities:
  Maximum 50% LTV for all buyers.
  (Down payment: at least 50%).

• Second homes or investment properties:
  Maximum 65% LTV for UAE Nationals and 60% LTV for Expats.

  Why These Rules Matter

  • Encourage sustainable ownership: First-time buyers benefit from higher LTV caps.

  • Protect borrowers: Ensures buyers have sufficient equity in their homes.

  • Reduce market risk: Maintains stability in both banking and real estate sectors.

Practical Examples

• First-time Expat buyer purchasing an AED 2M apartment in Dubai → Eligible financing up to 80% (AED 1.6M financed, AED 400K down payment).

• UAE National buying an off-plan villa in Abu Dhabi worth AED 3M → Maximum financing 50% (AED 1.5M financed, AED 1.5M down payment).

• Investor purchasing a second property worth AED 4M → Eligible up to 65% if National (AED 2.6M loan) or 60% if Expat (AED 2.4M loan).

• Need Expert Help With Your Mortgage?

  Understanding LTV rules in the UAE is key to planning your property purchase, but every case is unique. That’s where we come in.

  At The UAE Mortgages, we provide:
  ✅ Free consultation on mortgage options across 20+ UAE banks
  ✅ Tailored advice for first-time buyers, expats, and investors
  ✅ Step-by-step support from pre-approval to handover

  👉 Chat with us directly on WhatsApp to get your free consultation today