How Much Can I Borrow? Calculating Your Mortgage in the UAE

Modified: September 3, 2025

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4 mins read

For anyone looking to buy property in the UAE, one of the first questions is: how much mortgage based on salary can I afford? Understanding your borrowing capacity is crucial to plan your home purchase, budget effectively, and avoid future financial strain.

In this article, we’ll explain how lenders calculate how much mortgage based on salary, key factors affecting your eligibility, and tips to maximize your borrowing potential.

How Lenders Calculate How Much Mortgage Based on Salary

Banks in the UAE use a series of calculations to determine the maximum mortgage you can borrow. These calculations ensure that your mortgage payments remain manageable in line with your income.

Key considerations include:

Monthly Income: Your gross monthly salary is the primary factor in determining borrowing capacity.

Existing Obligations: Banks account for other loans, credit card debt, and financial commitments.

Debt-to-Income Ratio: Typically, lenders allow a debt-to-income ratio of 50–55% of your salary, which includes the new mortgage payment.

Interest Rate Assumptions: Banks may use slightly higher rates than current market rates to ensure affordability in case of interest rate hikes.

Loan Term: Longer-term loans reduce monthly payments but increase overall interest, while shorter terms raise monthly payments but reduce total interest paid.

Factors Affecting How Much Mortgage Based on Salary

Several personal and property-related factors can affect your borrowing capacity:

Age: Most lenders limit mortgage repayment age to 65 years or the borrower’s retirement age.
Employment Type: Permanent employees often have higher borrowing power than contractors or freelancers.
Residency Status: UAE residents generally have easier access to larger loans compared to non-residents.
Property Type: Lenders may offer higher loan-to-value ratios for completed residential properties compared to off-plan purchases.
Credit History: A strong credit record can improve your borrowing limit.

Using an Affordability Calculator

An effective way to estimate how much mortgage based on salary you can borrow is to use an online affordability calculator. Tools like the one from Lenddoo allow you to input your income, monthly obligations, and loan term to get an estimated mortgage limit.

Here’s an example table for illustration:

Monthly Salary (AED)	Existing Loans (AED)	Loan Term (Years)	Max Mortgage (AED)	Approx. Monthly Payment (AED)
15,000	2,000	25	1,200,000	7,200
25,000	3,000	25	2,000,000	12,000
40,000	5,000	25	3,200,000	19,200
60,000	8,000	25	4,800,000	28,800

Note: This table is for illustrative purposes only. Actual borrowing capacity may vary by bank and individual circumstances.

Tips to Maximize Your Mortgage Based on Salary

Increase Your Down Payment: A higher down payment reduces the loan amount, making approval easier.
Reduce Existing Debt: Paying off personal loans or credit cards improves your debt-to-income ratio.
Maintain a Strong Credit Score: Avoid late payments and keep credit utilization low.
Consider a Longer Loan Term: Extending your mortgage term lowers monthly payments, increasing borrowing capacity.
Consult a Mortgage Broker: Brokers like Mortgage Finder can compare multiple lenders to find the best fit for your salary and financial situation.

What Happens If You Borrow Too Much?

Taking a mortgage beyond what your salary comfortably allows can be risky. It may:

Strain your monthly budget.
Limit your ability to save or invest.
Increase the likelihood of missed payments or default.

Knowing how much mortgage based on salary you can borrow is the first step toward buying your dream home in the UAE. By understanding lender calculations, using affordability tools, and managing your finances wisely, you can secure a mortgage that aligns with your income and long-term financial goals.

At Mortgage Finder, we help you navigate your borrowing capacity, compare lenders, and secure the most suitable mortgage for your salary and lifestyle. Start your journey today to find out how much you can borrow!

A professional mortgage advisor can help you through the myriad of different mortgage products and different bank policies.

We’ve helped hundreds of families secure their UAE dream home. Most of them referred to us by happy clients. We are here to help you too.

Calculate your loan repayments here and get an indicative pre-approval within 24 hours.

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