7 Smart Tips to Increase Borrowing on Mortgage in the UAE

When applying for a home loan in the UAE, one of the biggest challenges many buyers face is getting approved for the amount they need. Banks calculate borrowing capacity based on strict affordability criteria, such as income, age, debt levels, and property value. However, there are proven strategies you can use to increase borrowing on mortgage and maximize your chances of securing the right loan.

This guide shares practical tips to help you boost your eligibility and explains how banks in the UAE assess affordability.

Understanding How Borrowing Capacity Works in the UAE

Before diving into the tips, it’s important to understand what determines how much you can borrow. In the UAE, borrowing is primarily influenced by three factors:

1. Debt Burden Ratio (DBR): The Central Bank of the UAE caps DBR at 50%. This means your total monthly debt repayments, including your mortgage, car loan, and credit cards, cannot exceed 50% of your monthly income.

2. Loan-to-Value (LTV) Ratio: For expats, the maximum mortgage allowed is usually 75–80% of the property value, depending on whether it’s your first property.

3. Loan Tenure and Age: The maximum tenure is 25 years, but it also depends on the retirement age (65 for expats, 70 for UAE nationals).

Knowing these limits can help you plan better when looking to increase borrowing on mortgage.

7 Tips to Increase Borrowing on Mortgage

1. Reduce or Clear Existing Debts

Banks in the UAE closely examine your financial commitments when calculating how much you can borrow. Even a small credit card balance can impact your DBR. By clearing outstanding loans or consolidating debts, you lower your monthly obligations, which frees up more capacity for your mortgage.

Example: If your salary is AED 25,000 and you have an AED 2,500 car loan, your DBR is already at 10%. Removing this debt allows you to borrow significantly more.

2. Opt for a Longer Mortgage Tenure

Choosing the longest possible tenure (up to 25 years) reduces your monthly installment, which improves affordability. While it means paying more interest over the long term, it can help you qualify for a larger mortgage today.

This strategy is especially useful for younger buyers who have more years before reaching the bank’s maximum age limit.

3. Increase Your Down Payment

The more equity you contribute upfront, the lower the risk for the bank. If you can save and contribute a down payment above the minimum requirement, banks may be more flexible in offering higher borrowing limits.

For example, instead of a 20% down payment, offering 30% shows stronger financial stability and can unlock better loan offers.

4. Add a Co-Borrower or Co-Applicant

Applying with your spouse or immediate family member can significantly increase your borrowing power. Both incomes are considered, which reduces the DBR and boosts the overall eligibility.

This is a common approach among expat couples in Dubai who want to maximize affordability when purchasing larger villas or townhouses.

5. Demonstrate Stable Income and Employment

Banks favor borrowers with steady employment history and regular income. If you have been with your employer for several years or work in a well-established company, it strengthens your case.

Additionally, if you receive allowances (like housing, transportation, or school fees) that are not reflected in your base salary, some banks may include these in affordability calculations if properly documented.

6. Improve Your Credit Score

A strong credit score reassures banks that you are reliable with repayments. Before applying for a mortgage, make sure to:

• •Pay bills and credit cards on time.

• •Avoid taking unnecessary short-term loans.

• •Keep credit utilization below 30%.

A higher credit score can sometimes mean more flexibility with your borrowing limit and even access to better mortgage rates.

7. Work with a Mortgage Broker

Navigating different banks’ affordability calculations can be complex. Some lenders are more flexible than others, and policies change often. A mortgage broker can help match you with the bank most likely to approve a higher amount based on your profile.

This is one of the most effective ways to increase borrowing on mortgage without going through trial and error with multiple applications.

Sample Borrowing Capacity Table

Here’s an example to show how salary, debts, and tenure affect how much you can borrow in the UAE:

This table demonstrates how clearing debt or having a higher income directly increases the amount you can borrow.

FAQs About Increasing Borrowing on Mortgage

Q1: Can variable income like bonuses or commission help increase borrowing?
Yes, but banks usually only consider a percentage of variable income, and you may need to show at least 6–12 months of consistent earnings.

Q2: Does age impact how much I can borrow?
Yes. Younger borrowers benefit from longer tenures, while older borrowers may face shorter repayment periods, reducing eligibility.

Q3: Can I refinance later to increase my borrowing?
Absolutely. Once your property value appreciates or your income improves, refinancing may allow you to unlock additional funds.

Q4: Do all banks calculate affordability the same way?
No. Each bank has slightly different policies. Some are stricter about allowances or self-employed income, while others are more flexible.

Getting approved for the amount you need can feel challenging, but with the right planning, it’s possible to increase borrowing on mortgage in the UAE. By reducing debt, opting for longer terms, adding a co-borrower, and working with a mortgage broker, you can boost your eligibility and secure the property you want.

If you’re ready to explore your options, speak with our expert advisors at Mortgage Finder. We can help you compare lenders and find the best strategy to maximize your borrowing capacity.