Mortgage basics
How can I calculate my mortgage affordability?
UAE banks calculate affordability using your debt burden ratio (DBR): total monthly debt repayments, including the new mortgage instalment, generally cannot exceed 50% of your gross monthly income. They also apply a maximum term of 25 years and cap your age at maturity, typically 65 for salaried and 70 for self-employed applicants.
The debt burden ratio explained
Add up your existing monthly debt: car loans, personal loans, credit card minimums, and any other financing. Then add your estimated new mortgage instalment. That combined total generally cannot exceed 50% of your gross monthly income under UAE Central Bank guidance, a limit known as the debt burden ratio (DBR), which most banks apply as a hard cap. See the mortgage glossary for how DBR and related terms are defined.
Other factors banks weigh
| Factor | Typical rule |
|---|---|
| Debt burden ratio | Up to 50% of gross monthly income |
| Maximum term | Up to 25 years |
| Age at maturity | 65 (salaried), 70 (self-employed) |
| LTV | Up to 80% for expat residents under AED 5M, less above that or for investment property |
A full worked example
Say your gross monthly income is AED 30,000 and you already pay AED 3,000 a month on a car loan. The 50% DBR cap allows total monthly debt of AED 15,000 (50% of AED 30,000). Subtract your existing AED 3,000 commitment and you have AED 12,000 available for a new mortgage instalment. Over a 25-year term at an indicative rate around 3.89-4%, AED 12,000 a month broadly supports a loan in the region of AED 2.1-2.3M on a reducing-balance basis, though the bank's own stress-testing and exact rate will refine this figure.
Borrowing capacity by income
| Gross monthly income | 50% DBR cap | Available instalment |
|---|---|---|
| AED 15,000 | AED 7,500 | Up to AED 7,500 |
| AED 20,000 | AED 10,000 | Up to AED 10,000 |
| AED 30,000 | AED 15,000 | Up to AED 15,000 |
| AED 40,000 | AED 20,000 | Up to AED 20,000 |
Use a calculator instead of manual maths
Rather than working this out by hand, Lenddoo's affordability calculator applies the DBR cap, term, and age limits automatically, see our step-by-step walkthrough for exact instructions. If you already have a property price in mind and want the resulting instalment and fees, use the mortgage calculator instead. For a deeper look at what pushes affordability up or down, read mortgage affordability in the UAE.
Common mistakes when estimating affordability
- Using net take-home pay instead of gross income in the DBR calculation
- Forgetting to include credit card minimum payments as existing debt
- Ignoring the age-at-maturity cap, which can shorten your effective maximum term
- Assuming affordability equals LTV eligibility; both caps apply independently
Run the numbers on your own case
Free Lenddoo tools and guides related to this article.
Last reviewed 10 July 2026
