Question 1

What is the DBR rule and how does it actually cap your Dubai mortgage?

Accepted Answer

The UAE Central Bank's Debt Burden Ratio (DBR) rule caps total monthly debt obligations at 50% of gross monthly income. 'Total obligations' means every regular payment: mortgage, car loan, personal loan, and credit card minimums (counted at 5% of outstanding balance per month, regardless of what you actually pay). On a AED 30,000/month salary, maximum total obligations = AED 15,000. If you have AED 2,400 in car loan and AED 600 in credit card minimums, your maximum new mortgage payment is AED 12,000 — not AED 15,000. Most buyers underestimate this subtraction. Enter your exact debts in the Affordability Calculator to get your true maximum.

Question 2

How much cash do you actually need to buy a AED 1,500,000 property in Dubai?

Accepted Answer

Breaking down the total cash required for a AED 1,500,000 property (expat, first purchase, financed):

• Down payment (20%): AED 300,000
• DLD transfer fee (4%): AED 60,000
• Agent commission (2%): AED 30,000
• Mortgage registration (0.25% of AED 1.2M loan): AED 3,290
• Valuation fee: AED 3,000
• Title deed + trust fee: AED 4,000
• NOC fee: ~AED 1,500

Total cash required at completion: AED 401,790 — 26.8% of the purchase price, not the 20% that developers advertise. Budget for 26–28% when planning a leveraged purchase in Dubai.

Question 3

What salary do you need to qualify for a AED 1,500,000 Dubai mortgage?

Accepted Answer

For a AED 1,200,000 mortgage (80% LTV on a AED 1.5M property) at 4.5% over 25 years: monthly payment = AED 6,616. Under UAE DBR rules (50% of gross income), minimum gross income = AED 13,232/month — assuming zero other debts. With a AED 2,000 car loan, minimum income rises to AED 17,232/month. With a AED 3,000 car loan and AED 500 credit card minimum, minimum income = AED 19,232/month. Each AED of existing debt requires AED 2 of gross income headroom. Enter your debt profile in the Altamimi Affordability Calculator to get your exact number.

Question 4

Do off-plan properties have different mortgage rules in the UAE?

Accepted Answer

Yes — and the distinction catches many buyers off guard. UAE banks do not lend on off-plan property during construction. Payment plans (20–30% upfront, balance across milestones) are funded entirely from your own cash. The mortgage is arranged separately and only activates at handover when a title deed is issued. This means off-plan buyers need significantly more liquid capital than a simply '20% down' statement implies: they may need to fund 40–60% of the price before handover before the bank steps in for the remainder. The Affordability Calculator models the ready-property mortgage scenario; for off-plan, use the main ROI Calculator with the construction period and payment plan inputs.

Question 5

What is the hidden cost most Dubai buyers discover too late?

Accepted Answer

Service charges. Most buyers plan for mortgage payments and purchase costs, then discover that annual service charges on their Dubai apartment run AED 12,000–45,000/year — paid quarterly to the building management company. Typical ranges: JVC/JVT studios and 1-beds: AED 8,000–14,000/year. Business Bay mid-rise: AED 16,000–28,000/year. Downtown or Dubai Marina premium towers: AED 30,000–80,000/year. This is a fixed cost that arrives regardless of occupancy or rent. Failing to budget for it reduces net ROI by 0.8–2.5 percentage points on a typical investment property. The Altamimi ROI Model includes service charges in every yield calculation by default.

Question 6

What income proof do UAE banks require for a mortgage?

Accepted Answer

Salaried UAE residents: 3–6 months payslips, 3–6 months bank statements, employment contract, Emirates ID, and passport. Self-employed: 2 years audited financial statements, 6 months business and personal bank statements, trade licence. Non-residents: 6 months overseas bank statements, proof of employment/income, and passport — plus a likely LTV cap of 50–65% and a slightly higher rate. One practical note: banks assess average salary receivable from statements, not just the payslip figure. Commission income, bonuses, and allowances are typically accepted at 75–100% of their consistent average. If your income is variable, go back 12 months to calculate a defensible average.

Question 7

Is there a free Dubai property affordability calculator?

Accepted Answer

Yes. The Altamimi Affordability Calculator at roi.altamimirealestate.com/affordability is the only free tool that applies the exact UAE Central Bank DBR framework to produce your real maximum property price — not an optimistic estimate. Enter your gross monthly income, existing monthly debt payments, and total savings. The calculator outputs: maximum qualifying mortgage payment, maximum loan, maximum property price, required down payment, total purchase costs at 6.5%, total cash required at completion, and whether your stated savings are sufficient. Free, no signup, UAE-specific rules.

How much can you afford?

Mortgage Affordability — Common Questions