Glossary
The jargon, translated.
- Amortisation
- The gradual repayment of a loan through scheduled instalments covering both principal and interest.
- DBR (Debt Burden Ratio)
- The share of your monthly income committed to debt repayments. UAE Central Bank caps this at 50%.
- DLD Fee
- Dubai Land Department transfer fee — 4% of the property value, payable on transfer of ownership.
- EIBOR
- Emirates Interbank Offered Rate — the benchmark rate variable UAE mortgages are typically priced against.
- Equity
- The portion of your property's value you own outright — market value minus outstanding mortgage.
- Fixed Rate
- An interest rate locked for an initial period (typically 1–5 years), giving predictable instalments.
- Freehold Area
- A designated zone where foreign nationals can own property outright, including land title.
- LTV (Loan-to-Value)
- The loan amount as a percentage of the property value. UAE caps: typically 80% for expats, 85% for nationals on a first property.
- Pre-Approval
- A bank's conditional commitment to lend a stated amount, valid for 60–90 days, issued before you choose a property.
- Tenure
- The lifetime of the mortgage — up to 25 years in the UAE, subject to retirement age limits.
- Valuation
- A bank-commissioned assessment of the property's market value, which the loan amount is based on.
- Variable Rate
- An interest rate that moves with the market benchmark (EIBOR) plus a fixed bank margin.