Dubai mortgage calculator

What this calculator is for

It answers one question: on a given price, deposit, term and rate, what leaves your account each month? That single figure decides which DAMAC projects are worth shortlisting, so it is worth knowing before viewing anything.

It is not a decision in principle and not an offer. Only a bank can tell you what it will lend you, and only after it has seen your income, your existing commitments and the property itself.

How to use it

Start with the price of the home you are considering, then move the deposit until the monthly figure sits where you want it. Raising the deposit lowers the loan and the payment; stretching the term lowers the payment but raises the total interest paid.

Use a rate close to what banks are quoting now rather than the best headline rate — an extra half a percent on a twenty-year loan is real money.

How the monthly payment is calculated

The figure is a standard fixed-rate annuity. The deposit is taken off the price to give the loan amount, the annual rate is divided by twelve to give a monthly rate, and the term is converted into months. The payment is then the amount that clears the loan and the interest in equal instalments over that many months.

Early instalments are mostly interest and later ones mostly capital, which is why overpaying early makes such a difference to what you pay in total.

Deposits and loan-to-value

UAE lending rules cap how much of the price a bank may lend, and the cap depends on whether you are a UAE national or an expatriate resident, on whether the price is above or below AED 5 million, and on whether it is your first home. In practice most expatriate buyers plan for a deposit of at least 20% on a first, completed home, and more on a second property or on an off-plan purchase.

Non-residents are generally asked for a larger deposit again, and fewer banks compete for the business. Confirm the current position with the lender before committing to a payment plan.

Whether a bank will lend to you

Banks look at income, length of employment or trading history, existing debt and age at the end of the term. A common rule of thumb is that total debt repayments should not exceed half of monthly income, and the loan should be repaid before retirement age.

For off-plan homes, lending usually starts closer to handover, so the developer's payment plan carries the purchase until then. That is why the plan matters as much as the mortgage.

Fixed and variable rates

Most UAE mortgages fix the rate for an introductory period — often one to five years — and then revert to a variable rate tracking EIBOR plus a margin. Fixing buys certainty; reverting exposes you to rate moves.

Ask what the revert rate is, not just the headline. Ask about early-settlement charges too: they are capped by regulation but they still cost money.

The costs beyond the payment

Budget for the Dubai Land Department transfer fee, registration and trustee-office charges, the lender's arrangement and valuation fees, and the service charge the community levies each year. The fee panel on this page estimates the government and lender side of that list.

On a DAMAC off-plan purchase the developer sometimes covers the DLD fee as part of an offer. Wincasa checks what is open on the day you reserve.

Then look at the homes

Once the monthly figure looks comfortable, filter the catalogue by budget and community and see what the number actually buys.

• Browse every DAMAC project
• Current developer offers