LTV Ratio in Dubai: Loan-to-Value Explained for Property Buyers

> **Current as of 2026:** UAE Central Bank LTV caps remain unchanged, up to **80% for residents** (properties under AED 5M; 70% above) and **50–60% for non-residents** depending on the bank and property value.

What Is LTV Ratio?

Loan-to-Value (LTV) ratio is the percentage of a property's value that a bank will finance through a mortgage. For example, an 80% LTV means the bank lends 80% of the property price, and you pay 20% as a down payment.

UAE Central Bank LTV Limits

For UAE Nationals

• First property (under AED 5M): Up to 80% LTV
• First property (over AED 5M): Up to 70% LTV
• Second property: Up to 65% LTV

For Expats

• First property (under AED 5M): Up to 75% LTV
• First property (over AED 5M): Up to 65% LTV
• Second property: Up to 60% LTV

Off-Plan Properties

• Maximum 50% LTV for all buyers

How LTV Affects Your Purchase

A higher LTV means a smaller down payment but larger monthly mortgage payments. A lower LTV requires more cash upfront but reduces your loan amount and interest costs over time.

Factors Banks Consider

• Property valuation: Banks conduct independent valuations
• Income: Debt Burden Ratio must not exceed 50% of gross income
• Credit history: Strong scores help secure better terms
• Property type: Ready vs off-plan affects maximum LTV

Tips to Optimize Your LTV

1. Save for a larger down payment
2. Consider properties under AED 5M for higher LTV
3. Maintain clean credit history with AECB
4. Compare offers from multiple banks
5. Factor in additional costs beyond the down payment