Tools
Mortgage Calculator + AU buyer's primer.
Estimate monthly mortgage repayments on a UAE property purchase, then read the section below for the UAE Central Bank rules, fees, and Australian-resident considerations that materially change the picture.
Your numbers
Estimated monthly repayment
$3,217
- Loan principal
- $500,000
- Total interest
- $272,195
- Total repaid
- $772,195
- First-year interest
- $23,500
Estimate only. UAE mortgages are in dirhams (AED); the AUD repayment shown is indicative and will change with the exchange rate. IPM doesn't arrange or recommend mortgages.
UAE Central Bank rules
What the regulator allows
The UAE Central Bank sets borrowing caps; individual lenders price within them. Numbers below are indicative; a lender or licensed mortgage broker will confirm them for your circumstances.
First home: loan-to-value caps
For a first home you live in, UAE-resident expatriates can borrow up to 80% of the property value on properties of AED 5m or less, and up to 70% above AED 5m. UAE nationals can borrow up to 85% and 75%.
Second or subsequent property
For a completed property that isn’t your first home in the UAE, the cap is 60% of the value for expatriates and 65% for UAE nationals.
Off-plan property
Off-plan and under-construction property is capped at 50% of the value for all buyers. Instalments due before handover are usually paid from your own funds.
Non-resident buyers
If you don't live in the UAE, which includes most Australian buyers, lenders usually lend 50–65% of the property value, depending on their own policy. Not every UAE bank lends to non-residents.
Income and existing debts
Your total monthly repayments can't exceed 50% of your gross monthly income. That includes the new mortgage, personal and car loans, and 5% of your credit-card limits. Australian commitments count too.
Term and age
The maximum term is 25 years. It's shorter if you'd pass the lender's age limit before the end of the loan, usually 65 for salaried expatriates and 70 for self-employed expatriates and UAE nationals.
Interest rates
In October 2026, fixed introductory rates (1–5 years) started at about 3.75–4.25% with a salary transfer to the bank, or about 3.99% without one. Variable rates are the 3-month EIBOR (about 4.16–4.22% in October 2026) plus the bank’s margin, typically 0.40–1.99%. Rates change often; your lender will quote yours.
UAE acquisition costs
Buying and mortgage costs
Purchase fees are paid in cash when you buy. UAE banks can't add them to the mortgage. On a ready property bought with a mortgage, they come to a little over 6% of the price, plus about 1.25% of the loan for registration and the bank's arrangement fee. The two insurance lines are yearly costs.
| Item | Indicative |
|---|---|
| Dubai Land Department (DLD) transfer fee | 4% of the purchase price |
| DLD administration fee | AED 580 |
| Registration trustee fee | AED 4,200 incl. VAT (AED 2,100 if the price is under AED 500,000) |
| Mortgage registration fee (DLD) | 0.25% of the loan amount |
| Mortgage administration fees | AED 290 |
| Agency commission | 2% of the purchase price + 5% VAT |
| Bank arrangement fee | Up to 1% of the loan (some banks up to 1.5%) + 5% VAT; sometimes waived |
| Valuation fee (bank-appointed valuer) | AED 2,500–3,500 + 5% VAT |
| Property insurance (required by the lender) | About 0.03–0.05% of the insured value a year |
| Mortgage life insurance | About 0.4–0.8% of the remaining loan a year |
Indicative figures as at October 2026, based on Dubai Land Department fee schedules and UAE Central Bank regulations. Bank fees and insurance vary by lender and by your circumstances. Subject to change; confirm current figures with your lender.
Australian-resident considerations
Australian tax and other considerations
You remain an Australian tax resident
Foreign rental income, capital gains on overseas property disposals, and FX gains are reportable to the ATO. A foreign income tax offset (FITO) may apply for income tax paid in the UAE, but UAE personal income tax is currently 0%, so the offset is usually nil.
No automatic land tax in the UAE
There is no annual UAE land tax or council rates. Communities and towers do charge an annual service charge (AED 12–25 per sqft typically). Factor this into your ongoing costs.
Currency exposure
The AED is pegged to the USD; the AUD floats. Your AUD-equivalent repayments will rise and fall with the exchange rate. Speak to your own adviser about how this affects you.
Anti-money-laundering checks
UAE banks request source-of-funds documentation under AML rules — purchase contract, payslips, share-sale evidence, etc. Allow 2–4 weeks for the file to clear before disbursement.
IPM does not arrange mortgages
IPM doesn't arrange, recommend or refer mortgages. If you'd like help with finance, Elite Private Finance, a division of Elite Property DXB, can connect you with UAE lenders and may receive a referral commission from the lender; IPM receives nothing. You can also use your own licensed broker.
FAQ
Common questions from Australian buyers
Can I borrow against my Australian property to fund a UAE purchase?
Some buyers fund overseas purchases using equity in Australian property. This puts your Australian property at risk if repayments can't be met, and it's a decision to make with a licensed Australian credit adviser. IPM doesn't arrange or recommend this.
Do I need to travel to Dubai to sign the mortgage?
Not always. A Power of Attorney can allow a representative to sign for you. A UAE lawyer can explain the process.
What documents do UAE banks ask for?
Passport + visa pages, three to six months of bank statements, the latest two pay slips or business financials, a UAE credit-bureau (AECB) report if applicable, and a salary certificate from your employer. Off-plan files also require the developer SPA and Oqood receipt.
What happens if I want to sell early?
Early-settlement fees are capped at 1% of the outstanding balance or AED 10,000 (whichever is lower) under UAE Central Bank rules, for full or partial early repayment.
General information only. IPM doesn't arrange or recommend mortgages. Lender criteria and fees change; confirm current figures with your lender.