LTV is the number the UAE Central Bank cares about most, and the number that quietly defines what kind of buyer you are.
Loan-to-value is the mortgage amount divided by the property’s appraised value, expressed as a percentage. UAE Central Bank rules cap expat LTV at 80% on primary residences under AED 5M, 70% on properties above AED 5M, and 50% on off-plan (until handover, after which it can be refinanced higher). Emiratis get marginally better caps. Second-property buyers take a 5-10% LTV hit compared to first-property.
The catch: LTV is calculated against the bank’s valuation, not the contract price. If the sticker is AED 2M but the bank’s valuer marks the unit at AED 1.85M, your 80% LTV gives you a AED 1.48M loan — and you need to find the missing AED 120k from cash. It happens more often than buyers expect, especially on secondary-market transactions above comparable median.
A client last year agreed to a AED 1.9M unit in Dubai Hills at the top of the cluster’s price band. Bank valuation came in at AED 1.77M. He either topped up cash, renegotiated, or walked. He renegotiated to AED 1.82M and closed.
Always line up a bank valuation before you commit contractually, not after.
Related: Mortgage, Down Payment, Equity, Valuation Certificate.
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