Dubai’s property market has entered a new phase in 2025, with major changes to how mortgages work. Since February 1, 2025, the Central Bank of the UAE has enforced new mortgage regulations requiring buyers to pay key fees upfront, reshaping how properties are purchased in Dubai.

If you’re buying a home or investing in Dubai today, here’s everything you need to know about the new mortgage rules, how they impact buyers, and how you can adapt to take advantage of these changes.

What Are the Current Mortgage Rules in Dubai (2025)?

Under the new regulations now in force, banks no longer cover transaction-related costs in mortgage loans. Buyers must pay the following fees separately:

• 4% Dubai Land Department (DLD) Registration Fee
• 2% Real Estate Brokerage Commission
• DLD Trustee Fee – AED 4,200
• Mortgage Registration Fee – 0.25% of Loan Amount
• Title Deed Issuance Fee – AED 500

Before February 2025, many of these fees were financed as part of the mortgage, enabling buyers to spread costs over their loan term. Now, they must be paid in full upfront, along with the 20–30% down payment on the property.

Why Did Dubai Implement These Changes?

Dubai’s updated mortgage framework aims to strengthen the real estate market by:

• Promoting Financial Responsibility – Ensuring buyers have sufficient liquidity and reducing default risks.
• Preventing Market Overheating – Avoiding inflated property prices caused by excessive leverage.
• Aligning with Global Standards – Bringing Dubai in line with markets like the UK and USA, where mortgages cover only the asset itself.

Farooq Syed, CEO of Springfield Properties, commented:
“This move ensures a more stable and financially responsible real estate ecosystem, positioning Dubai among the world’s most secure property markets.”

How Do These Rules Affect Buyers in 2025?

1. Higher Upfront Costs for Ready Properties

For buyers purchasing secondary (ready) homes, more cash is needed upfront.
Example: On a property worth AED 1 million, you’ll now need about AED 60,000 extra in fees at the time of purchase.

2. Off-Plan Properties Are Now More Attractive

These regulations have shifted demand heavily towards off-plan properties in 2025:

• Flexible 5–10 year developer payment plans
• No upfront DLD or brokerage fees in many projects
• Post-handover payment options, allowing you to pay after taking possession

This makes off-plan Dubai real estate a top choice for investors seeking affordable entry points and long-term gains.

How to Succeed Under Dubai’s New Mortgage Rules (2025)

1. Budget & Plan Ahead

Ensure you have enough liquid funds to cover upfront costs plus your 20–30% down payment. Consulting a Dubai mortgage advisor can help you structure your finances effectively.

2. Explore Off-Plan Projects

Take advantage of 0% interest payment plans, fee waivers, and extended schedules offered by leading developers, reducing your initial investment burden.

3. Look for Developer Incentives

In 2025, many developers are competing for buyers with:

• DLD fee waivers
• Furnished units
• Post-handover payment options

These perks make investing in Dubai’s real estate market more accessible and profitable than ever.

Final Thoughts – Dubai’s Mortgage Market in 2025

The Dubai mortgage rules introduced in 2025 have changed the way buyers approach property purchases. While upfront costs for ready properties have increased, these measures ensure long-term market stability and protect buyers from over-leveraging.

For investors, off-plan projects remain the star attraction—offering flexible payment options and strong ROI potential in one of the world’s fastest-growing property markets.

Dubai Real Estate Mortgage FAQs

Q: What is the current mortgage rate in Dubai?
A: Rates fluctuate but currently range from approximately 3.99% to 6.5%+ per annum for fixed-rate (2-5 years) and variable-rate plans, depending on the bank, loan amount, LTV, and borrower’s profile.

Q: Are mortgages a thing in Dubai?
A: Yes, absolutely. Mortgages are a common and well-regulated method for both residents and non-residents to finance property purchases in Dubai.

Q: How much does a mortgage broker make in Dubai?
A: Mortgage brokers are typically paid a commission by the bank (not the borrower), usually around 0.5% to 1% of the total loan amount.

Q: Did Dubai mortgages hit 14 month high as demand for property stays strong?
A: Yes. In periods of high demand (like 2023-2024), rising interest rates can push mortgage rates to multi-month highs, but this is often a side effect of a strong, competitive property market.

Q: Which bank has the lowest mortgage rates?
A: The bank with the “lowest” rate changes frequently and depends heavily on the applicant’s financial situation. It’s best to compare offers from top banks like Emirates NBD, ADCB, DIB, and FAB.

Q: What is the minimum salary for an ADCB mortgage?
A: ADCB typically requires a minimum monthly salary of AED 15,000 for expatriates and AED 10,000 for UAE nationals to be eligible for a mortgage.

Q: Why is it difficult to get a mortgage in Dubai?
A: It’s not inherently difficult, but it requires meeting strict criteria: a stable income (min. salary), a clean credit history, and the property must pass the bank’s valuation. The process is thorough to ensure financial responsibility.

Q: Are mortgages in Dubai interest free?
A: No. Conventional mortgages in Dubai are not interest-free. However, Islamic banks in the UAE offer Sharia-compliant financing products that are structured without interest (using concepts like rent/lease or profit-sharing).

Q: What happens if you can’t pay a mortgage in Dubai?
A: The bank will initially try to restructure the loan. If payments remain missed, the bank may foreclose on the property, sell it at auction, and pursue you for any remaining debt balance after the sale.

Q: How much mortgage can I get with my salary in Dubai?
A: A general rule is that your total monthly debt obligations (including the new mortgage) should not exceed 50% of your gross monthly salary. Most banks use this to calculate your maximum eligible loan amount.

Q: Which bank is easiest to get a home loan?
A: There is no single “easiest” bank, as it depends on your profile. However, larger local banks like Emirates NBD, ADCB, and Dubai Islamic Bank (DIB) have well-established processes and are common choices.

Q: What is the LTV for a UAE mortgage?
A: Loan-to-Value (LTV) is set by the UAE Central Bank. For a first property purchase:

• Expats: Up to 80% LTV for properties under AED 5M, 70% for over AED 5M.

• UAE Nationals: Up to 85% LTV for properties under AED 5M, 80% for over AED 5M.

• For second/subsequent mortgages, the LTV ratios are lower.