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Minimum Salary Criteria for Mortgage Loan in UAE

Minimum Salary Criteria for Mortgage Loan in UAE

The term Home Loan refers to a loan used to purchase or maintain a home, land, or other types of real estate. The borrower agrees to pay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property serves as collateral to secure the loan. A borrower must apply for Home Loan through their preferred lender and ensure they meet several requirements, including minimum credit scores and down payments.

Home Loan applications go through a rigorous underwriting process before they reach the closing phase. Home Loan types vary based on the needs of the borrower, such as conventional and fixed-rate loans.

How Home Loan Works?

Home Loan are used by individuals and businesses to purchase real estate without paying the whole purchase price up front. The borrower pays back the loan plus interest over a set period of time until they acquire the property outright. Liens against property or claims on property are other terms for mortgages. If the borrower defaults on the loan, the lender has the option to foreclose on the property.

A residential homebuyer, for example, promises his or her home to their lender, who then has a claim on the property. If the buyer defaults on their financial obligations, this protects the lender's interest in the property. In the event of a foreclosure, the lender has the option of evicting the occupants, selling the property, and using the proceeds to pay off the mortgage debt.

How to determine Minimum Salary Required to Buy Home Loan in Dubai?

Are you ready to make the leap from renter to homeowner? It's a good moment to consider investing in the profitable real estate industry. However, if you're concerned about the math, don't worry; we've got you covered! The following is a list of the minimum salaries required to purchase property in Dubai. Depending on your wage, we've selected the best regions to buy apartments and villas.

For the purposes of this article, we'll assume you'll be purchasing a home in Dubai with the help of a home loan.

Consider the fact that existing Loan to Value for first-time expat purchasers are capped at 80 percent. Our estimates are based on the assumption that you have enough money set up for a 20% down payment on your dream home.

Furthermore, we will assume a 25-year mortgage term, a 3.5 percent average fixed interest rate, and an EMI (Equated Monthly Instalment) of no more than 25% of your monthly salary.

However, you should keep in mind that, in addition to the down payment, you will be responsible for the following upfront expenditures when purchasing property in Dubai:

  1. Dubai Land Department Fee: 4% of the property value
  2. DLD Admin Fees: AED 4,000 (plus 5% VAT)
  3. Title Deed Issuance Fee: AED 520
  4. Mortgage Registration Fee: 0.25% of the mortgage value
  5. Mortgage Registration Admin Fee: AED 290
  6. Agency Fee: 2% of the sale price (plus 5% VAT)

But that's not all; there are still extra fees to figure out. The bank will charge you extra fees for mortgage processing and property valuation.

It's also vital to remember that life insurance is required when applying for a mortgage.

These are some of the upfront expenditures you must spend before determining the minimum wage required to purchase real estate in Dubai.

Minimum Salary in Dubai to Get a Mortgage Loan

Because Dubai has both affordable and luxurious houses, the minimum wage required to buy ready property in Dubai will vary depending on your desired property type and location.

You should also keep in mind that most UAE banks require a minimum monthly salary of AED 15k in order to qualify for a property loan.

Although some banks may approve applicants with a monthly salary of AED 10,000, the minimum ADCB house loan salary amount is AED 15,000, according to the ADCB Dream Home platform.

Minimum Salary Required in Dubai to Buy an Affordable Apartment

Dubai has a large inventory of reasonably priced apartments for smaller investors. Let's have a look at the minimal wage required to buy an inexpensive property in Dubai. Keep in mind that your mortgage payment will be less than 25% of your monthly wage, with a 3.5 percent average interest rate.





EMI (25-YEAR TENURE @ 3.5%)


Jumeirah Village Circle

AED 665,000

AED 133,000

AED 1,835

AED 10k

Jumeirah Lake Towers

AED 808,000

AED 161,600

AED 2,230

AED 10k

Dubai Silicon Oasis

AED 468,000

AED 93,600

AED 1,292

AED 10k


As you can see, those with a monthly salary of AED 10,000 or less can afford to buy a one-bedroom flat in Jumeirah Lake Towers. AED 808k is the average price of a one-bedroom property for sale in JLT.

A monthly payment of the same amount can be used to purchase a one-bedroom apartment in Jumeirah Village Circle, where the average price of a one-bedroom flat is AED 665k.

Another popular region with inexpensive flats for sale is Dubai Silicon Oasis. With a minimum salary of less than AED 10k, you can buy a 1-bedroom flat in DSO for an average price of AED 468k. However, with that wage, you may not be able to meet the requirements for acquiring a mortgage in the United Arab Emirates.


The UAE Mortgage Cap law requires expat buyers to put down a 20% down payment on their first completed property. UAE nationals, on the other hand, are required to put down 15% of the total property value. If the property is worth more than AED 5 million, expats must put down 30% of the purchase price, while UAE nationals must put down 25%.

If you’re planning to buy a home in UAE connect to us at Dhanguard for the best services. We help our clients to get home loans at Best Rates.

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