Home finance for UAE nationals: LTV limits and housing programmes

A UAE national can borrow up to 85% of the value of a first home worth up to AED 5 million, 75% above that and 65% for a second home or investment, under Central Bank limits. Off-plan is capped at 50%. Separately, federal and emirate housing programmes support Emirati buyers, and banks provide the loans.

Key takeaways

• The Central Bank caps a UAE national's loan at 85% of the value for a first home up to AED 5 million, 75% above that and 65% for a second home or investment.
• The loan cannot exceed 8 times annual income for a national (7 times for an expatriate), and total repayments must fit within 50% of income after a rate stress test.
• Housing programmes, such as the federal Sheikh Zayed Housing Programme and local bodies in Abu Dhabi and Dubai, are separate from the bank's lending limits.
• Under the May 2022 Home Finance Policy, banks fund loans to Emiratis and the Sheikh Zayed Housing Programme funds the interest on the nationals' behalf.
• Off-plan purchases are capped at 50% for every buyer, and a bank can always lend less than the Central Bank maximum.

What the LTV limits are

Loan-to-value (LTV) is the loan as a share of the property's value. The Central Bank sets the maximum, and the limit depends on whether you are a UAE national or an expatriate, whether the home is your first, and its price. Nationals get higher caps than expatriates at every tier except off-plan.

Maximum LTV for a UAE national

85% first home

For a UAE national, the Central Bank limits the loan to 85% of the value of a first home up to AED 5 million, 75% above AED 5 million and 65% for a second home or investment property; off-plan property is capped at 50% for any buyer.

Source: Central Bank of the UAE, Mortgage Regulations, as confirmed on this site on 13 October 2026.

The caps are maximums. The Mortgage Regulations tell lenders to use lower LTVs where risks are higher, so a bank can offer less. The expatriate side is covered in mortgages for expats in the UAE, and buyers who live abroad fall under the expatriate caps (see mortgages for non-residents).

Other limits on a national's mortgage

The LTV cap is only one of several tests. A lender must also check that you can afford the loan.

• Income multiple: the loan cannot exceed 8 times annual income for a UAE national, against 7 times for an expatriate.
• Debt burden: all your monthly repayments, including the mortgage, must stay within 50% of your income, with the instalment tested at a higher rate.
• Term: a mortgage can run for at most 25 years.
• Your own money: the deposit must come from your own funds, not from a personal loan or credit card.

Mortgage stress test

+2 to 4 points

When working out the debt burden ratio, mortgage lenders must stress-test the loan at 2 to 4 percentage points above its current interest rate; with an introductory rate, the test uses the rate that applies after it ends.

Our mortgage affordability calculator applies these tests to your numbers, and a bank's own estimate comes with a mortgage pre-approval. If your rate is variable, EIBOR decides how the instalment moves; fixed vs variable mortgages compares the two.

Worked example: a first home for AED 2,000,000

Worked example

A UAE national buys a first home for AED 2,000,000

The price and income are illustrations, not offers. The example uses the Central Bank maximums for a first home up to AED 5 million.

1. Maximum loan at 85%: AED 2,000,000 × 85% = AED 1,700,000.
2. Minimum deposit: AED 2,000,000 − AED 1,700,000 = AED 300,000 (15%).
3. Income test: with a monthly income of AED 40,000, annual income is AED 480,000, and 8 × AED 480,000 = AED 3,840,000. The loan of AED 1,700,000 is well inside that limit.
4. Dubai mortgage registration: 0.25% × AED 1,700,000 = AED 4,250, before the other fixed fees.
5. For comparison, an expatriate at the 80% cap would borrow AED 1,600,000 and need a deposit of AED 400,000, which is AED 100,000 more.

At the maximum LTV, the national's minimum deposit is AED 300,000, against AED 400,000 for an expatriate.

Housing programmes for Emiratis

Housing programmes are government schemes, separate from the Central Bank's lending limits. They are for Emirati citizens, and what is on offer differs by emirate. The UAE government portal (u.ae) describes the following.

Federal support

The Sheikh Zayed Housing Programme (SZHP), established in 1999, provides interest-free loans repayable over 25 years to citizens with low incomes. Grants and non-reimbursable assistance go to the poorest segments of society, and SZHP gives priority to orphans, widows, older people and people with special needs. In 2020 the programme was merged with the Ministry of Energy and Infrastructure, which the portal says provides housing grants and loans to deserving Emiratis.

Sheikh Zayed Housing Programme

25-year interest-free loans

The UAE government portal describes the Sheikh Zayed Housing Programme, established in 1999, as providing interest-free loans repayable over a 25-year period to citizens with low incomes, and gives priority to orphans, widows, aged people and people with special needs.

Emirate-level bodies

Several emirates run their own housing bodies. The portal describes the Abu Dhabi Housing Authority, created in December 2012 to provide housing for Abu Dhabi citizens and to manage its housing loans programme, and the Mohammed bin Rashid Housing Establishment, set up in 2007 to provide housing to Dubai nationals through plots, government houses, ready houses, maintenance and housing loans. It also lists the Department of Housing in Sharjah and the Sheikh Saud Housing Programme in Ras Al Khaimah, without giving details. Check the body for your emirate for current terms.

How programmes and bank loans fit together

In May 2022 the UAE Cabinet endorsed a Home Finance Policy for UAE nationals. Under it, the country's banks assume full responsibility for the process of loan funding for Emiratis, and SZHP funds the interest resulting from the loans on the nationals' behalf. In practice, an Emirati home loan is financed through collaboration between the programme and national banks.

Home Finance Policy for UAE nationals

Banks lend, SZHP funds interest

In May 2022 the UAE Cabinet endorsed a policy on home finance for UAE nationals: banks assume full responsibility for loan funding for Emiratis, and the Sheikh Zayed Housing Programme funds the interest resulting from the loans on behalf of the nationals.

The policy page does not state loan amounts, repayment ages or eligibility tests, so this guide does not either. Two things follow from the structure. The bank still applies its own credit checks and the Central Bank limits above, and the housing authority decides what support you qualify for. A programme approval does not replace the lender's assessment, and a bank approval does not guarantee programme support.

Costs on top of the deposit

Nationals still pay purchase costs. In Dubai, the Dubai Land Department lists a transfer fee of 4% of the price and charges 0.25% of the mortgage value to register the mortgage, plus fixed fees; the full list is in our guide to DLD and mortgage registration fees. Buying before completion has its own rules, set out in financing off-plan property. If you later switch lenders, see mortgage buyout and refinancing.

Our mortgage guides cover the rest of the process. We explain the rules and do not recommend lenders or programmes. More about how we work is on our about page.