The deposit is paid, the unit is reserved, and the bank says no. It happens more often than buyers expect, and usually for reasons that could have been checked before signing. Here are the rules banks must follow, the common reasons for a rejection, and what to do next.
By Umer Shauket, Founder & CEO, Cresco Real Estate. RERA ORN 34288. Published 8 November 2026.
The short answer
- For expats, Central Bank caps are 80% of value on a first property under AED 5M, 70% above AED 5M and 60% on a second property.
- Off plan purchases are capped at 50% for everyone.
- Total monthly debt payments cannot exceed 50% of income.
- Banks can apply stricter rules, especially to buyers who live outside the UAE. Get written pre approval before you pay a deposit.
The rules every UAE bank must follow
The Central Bank’s mortgage regulations set maximum loan to value ratios and income tests:
| Buyer and property | Maximum loan to value |
|---|---|
| Expat, first property, value under AED 5M | 80% |
| Expat, first property, value over AED 5M | 70% |
| Expat, second or investment property | 60% |
| Any buyer, off plan purchase | 50% |
- Debt burden. All monthly debt payments together cannot exceed 50% of gross salary and regular income.
- Term. The maximum term is 25 years. Each bank sets its own maximum age at final repayment.
These are maximums. Each bank applies its own policy on top, including for buyers who live outside the UAE.
The usual reasons for a no
- The debt burden test fails. Car loans, credit card limits and other mortgages all count against the 50%.
- The valuation comes in low. The loan is a percentage of the property’s value. If the bank’s valuer puts the value below your price, you must fund the gap in cash.
- The purchase is off plan. Buyers who planned on 70% or 80% find the cap is 50% until the rules for completed property apply.
- It is a second property. The cap drops to 60% even if your first property is fully paid.
- You live abroad. Banks can apply their own policy to buyers who live outside the UAE, including lower limits or extra documents. Ask before you apply.
What this means for a buyer
Imagine you already own one Dubai apartment and are buying a second, completed one for AED 2,000,000. The cap is 60%, so the most a bank can lend is AED 1,200,000. You need AED 800,000 in cash, plus the 4% Dubai Land Department fee of AED 80,000 and the mortgage registration fee of 0.25% of the loan, AED 3,000 (Dubai Land Department). That is about AED 883,000 before agency and bank fees. Buyers who assumed 80% would be short by AED 400,000.
Get written pre approval first. Ask the bank for an approval in principle that states the loan amount, rate and conditions before you pay a deposit.
Make the reservation conditional. Where you can, agree in writing that your deposit is refundable if finance is refused.
Keep a cash buffer for a low valuation. If the valuation comes in 5% under your price, the loan shrinks and your cash goes up.
If you were rejected, ask why in writing. The reason decides the fix: paying down a card limit, adding income, choosing a different bank, or renegotiating the price.
Use our mortgage calculator, read the Dubai mortgage guide, and for off plan, see whether you can mortgage off plan.
The honest limits
Central Bank rules set maximums; individual banks decide each case. Rules for UAE nationals differ from the expat limits shown here. This is general information, not financial advice.
Frequently asked questions
How much can an expat borrow for a Dubai property?
Under Central Bank rules, up to 80% of the value for a first property under AED 5 million, 70% above AED 5 million, and 60% for a second or investment property. Off plan purchases are capped at 50%. Banks can lend less.
Why was my Dubai mortgage rejected?
Common reasons include monthly debt payments above 50% of income, a bank valuation below the price, an off plan purchase where you planned to borrow more than 50%, or a bank policy that limits lending to buyers who live outside the UAE.
What is the longest mortgage term in the UAE?
The Central Bank caps mortgage terms at 25 years. Each bank sets its own maximum age at the end of the loan.
Sources: Central Bank of the UAE, Regulations Regarding Mortgage Loans; Dubai Land Department, mortgage and sale registration fees. General information, not financial advice.