---
title: "LTV"
canonical: https://www.uaepropertyagents.com/glossary/ltv
markdown: https://www.uaepropertyagents.com/md/glossary/ltv.md
type: glossary-term
description: "Loan-to-value is the share of a property's value a bank will lend; UAE Central Bank rules cap it, and non-residents are usually offered less than the cap."
publisher: "UAE Property Agents (Omnia)"
language: en-GB
usage: "You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting."
---

# LTV

> Loan-to-value is the share of a property's value a bank will lend; UAE Central Bank rules cap it, and non-residents are usually offered less than the cap.

Also known as: Loan-to-value, Loan-to-value ratio.

## What LTV means for a buyer

Loan-to-value (LTV) is the mortgage divided by the property's value, expressed as a percentage. The remainder is the deposit you must fund yourself.

The UAE Central Bank sets maximum LTVs. For expatriates the caps are:

- 80% for a first home valued up to AED 5 million
- 70% for a first home above AED 5 million
- 60% for a second home or investment property
- 50% for off-plan property, whoever the buyer is

Monthly debt repayments may not exceed 50% of income, and the maximum term is 25 years.

Those are ceilings for UAE residents. A buyer living abroad is assessed under each bank's own non-resident policy, which is stricter: maximum LTVs are commonly between 50% and 65%, the choice of lenders is narrower, and some nationalities and income types are excluded.

Three practical points. The bank lends against the lower of the price and its own [valuation](https://www.uaepropertyagents.com/glossary/valuation), so a low valuation increases the cash you need. Purchase costs, including the [4% transfer fee](https://www.uaepropertyagents.com/glossary/dld-transfer-fee) and agent's commission, have to be paid from your own funds; since February 2025 banks have not been permitted to finance them. And most off-plan buyers do not use a mortgage during construction at all: lending normally begins at [handover](https://www.uaepropertyagents.com/glossary/handover), although Abu Dhabi introduced a framework for registering mortgages on off-plan units in 2026.

## Related terms

- [Pre-approval](https://www.uaepropertyagents.com/glossary/pre-approval): A mortgage pre-approval is a bank's written, conditional indication of how much it will lend you, issued before you have chosen a specific property.
- [Valuation](https://www.uaepropertyagents.com/glossary/valuation): A valuation is a professional assessment of a property's market value, most often commissioned by a bank to decide how much it will lend.
- [Mortgage registration](https://www.uaepropertyagents.com/glossary/mortgage-registration): Mortgage registration is the recording of a lender's charge against a property at the land department; in Dubai the fee is 0.25% of the loan amount.
- [EIBOR](https://www.uaepropertyagents.com/glossary/eibor): EIBOR is the Emirates Interbank Offered Rate, the benchmark interest rate published daily by the UAE Central Bank, to which variable mortgage rates are linked.

## In depth

- [Non-resident mortgages in the UAE: how much you can borrow, 2026 rates, fees and how to apply](https://www.uaepropertyagents.com/guides/non-resident-mortgages-uae)


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Source page: https://www.uaepropertyagents.com/glossary/ltv. Published by UAE Property Agents, Omnia Capital Group. You may read, quote, summarise and cite this content, including in AI answers, with attribution to UAE Property Agents and a link to the canonical URL. Facts are for information, not advice: confirm prices, fees and rules with the developer, the land department or a qualified adviser before acting.