Buyer guide
The product label matters less than the all-in cost, but the structure shapes your risk and your minimum deposit. Here's what each option is, who it suits, and the CBUAE rules that apply to all of them.
| Type | What it is | Best for |
|---|---|---|
| Fixed-rate | Rate locked for an introductory period (commonly 1-5 years), then it reverts to a variable rate for the remaining term. | Buyers who want payment certainty through the early years and protection if EIBOR rises. |
| Variable / floating | Rate tracks EIBOR plus a fixed bank margin, so the monthly payment moves up and down with the benchmark. | Buyers who expect rates to fall, or who plan to sell or refinance before rate moves bite. |
| Islamic — Ijara | The bank buys the property and leases it to you; ownership transfers at the end of the term. Sharia-compliant, structured as rent rather than conventional interest. | Buyers who need a Sharia-compliant structure; the all-in cost is usually comparable to a conventional loan. |
| Islamic — Murabaha | The bank buys the property and resells it to you at a disclosed, agreed mark-up paid in instalments. | Sharia-compliant buyers who prefer a fixed cost-plus price known in full from day one. |
| Non-resident mortgage | For buyers without UAE residency. Offered by a subset of banks, typically at a lower loan-to-value (often 50-60%) and a slightly higher rate. | Overseas investors buying Dubai property without relocating. |
| Off-plan / construction | Financing aligned to the developer payment plan; the full mortgage is often only drawn near handover, with instalments self-funded until then. | Buyers of under-construction units — see the off-plan guide for the trade-offs. |
Fixed buys certainty for the intro period at a slightly higher starting rate; variable is cheaper today but exposes you to EIBOR moves. A common middle path is a short fixed period covering the years you are most rate-sensitive, then reassessing or refinancing at reversion.
Economically the two are close — Islamic products replace interest with rent (Ijara) or a disclosed mark-up (Murabaha) to stay Sharia-compliant. Compare the all-in profit rate and fees, not the label; the cheapest option varies bank to bank.
Residents access higher LTV (more borrowing per dirham of deposit) and a wider set of lenders. Non-residents can still borrow, but expect a larger down payment and fewer banks — factor that into the cash you need upfront.
Total monthly debt repayments (mortgage + all other obligations) cannot exceed 50% of monthly income under CBUAE rules — regardless of whether the product is fixed, variable, or Islamic. See the DBR explainer.
For residents, first-property LTV is commonly up to 80% under AED 5M (so a 20% deposit), lower above that and for second properties; non-residents are capped lower. Your mortgage type does not change these caps.
If you repay or refinance early, the bank's settlement fee is capped by CBUAE (broadly the lower of ~1% of the outstanding balance or a fixed ceiling). Confirm the exact figure in your offer letter before signing.
A pre-approval fixes your budget and the product terms before you commit to a property. Use the pre-approval checklist so the file is complete on first submission.