While each bank has its own criteria, the general requirements are:
• Minimum Age: Usually 21 years at application and not exceeding 65 or 70 at loan maturity.
• Minimum Income: Most banks require a minimum monthly salary of AED 10,000 – AED 15,000.
• Proof of Income: 6 months of bank statements, salary certificates, and employment contract.
• Down Payment: You must have the required down payment (see LTV ratios above) ready in your account. Banks will want to see it has been there for a period of time(e.g., 3 months).
• Debt Burden Ratio (DBR): The UAE Central Bank mandates that your total monthly debt obligations (including the new mortgage payment) should not exceed 50% of your gross monthly income.
This is based on two key factors:
1. Loan-to-Value (LTV) Ratio: As mentioned above, this is the maximum percentage of the property price the bank will lend.
2. Your Debt Burden Ratio (DBR): The bank calculates your maximum eligible monthly instalment based on your income and subtracts any other existing debt (personal loans, car loans, credit card payments). The new mortgage instalment must keep you under the 50% DBR threshold.
Recommendation: It is highly advisable to consult directly with Windsor Premier Mortgage Team who can calculate the actual loan that can be approved for you.
