Every mortgage term, in the language of borrowers.

Amortisation

The gradual repayment of a mortgage loan through scheduled monthly instalments of principal and interest. In the early years more of each payment goes to interest; in the later years more goes to principal.

Buy-to-Let Mortgage

A mortgage used to purchase a property that will be rented out rather than occupied by the borrower. Lenders assess the deal on projected rental income alongside the borrower's personal income.

Cap

A contractual maximum on how much your variable mortgage rate can rise over a defined period. A common UAE structure caps the rate at 5.99% for the first 3 years.

Conveyancing

The legal process of transferring property ownership from seller to buyer, including title checks, NOC issuance, mortgage registration, and the final Land Department transfer.

DBR (Debt Burden Ratio)

The total of your monthly debt commitments — mortgage, car loan, credit card minimums, personal loans — expressed as a percentage of your net monthly income. UAE Central Bank caps the DBR at 50%.

Deposit

The portion of the purchase price you pay from your own funds. The UAE Central Bank requires at minimum 20% for first-time resident buyers, 25% for second properties, and 25% to 50% for non-residents.

Drawdown

The point at which the lender releases the mortgage funds — typically paid directly to the seller at the Land Department on transfer day.

EIBOR

The Emirates Interbank Offered Rate — the benchmark interest rate at which UAE banks lend to each other. Variable mortgage rates are quoted as EIBOR plus a lender margin (e.g. 3M EIBOR + 1.50%).

EMI (Equated Monthly Instalment)

The fixed monthly payment a borrower makes to the lender, covering both principal and interest. The EMI remains constant on fixed-rate periods but resets on variable rates each EIBOR reset date.

Equity

The portion of your property you own outright — the current market value minus the outstanding mortgage balance. Equity grows as you pay down the loan and as the property appreciates.

Equity Release

Borrowing against the equity built up in a property you already own, usually through a cash-out refinance. Funds can be used for further investment, business, or consolidation.

Fixed Rate

A mortgage rate that is locked in place for a set period — typically 1, 3, or 5 years in the UAE. After the fixed period the loan reverts to the lender's variable rate unless refinanced.

Freehold

A form of property ownership where the buyer holds the title indefinitely. Designated freehold areas in Dubai (e.g. Dubai Marina, Downtown, Palm Jumeirah) are open to foreign ownership.

Handover

The point at which an off-plan property is completed and the keys are transferred to the buyer. Final mortgage drawdown on off-plan units typically occurs at handover.

Interest-Only Mortgage

A mortgage where the borrower pays only the interest each month, leaving the principal unchanged. Rare in the UAE and usually limited to short-term bridging.

Joint Mortgage

A mortgage held in two or more names, where all parties are jointly and severally liable for the debt. Joint applications combine incomes for affordability but credit profiles are assessed individually.

LTV (Loan-to-Value)

The ratio of the loan amount to the property's value, expressed as a percentage. UAE Central Bank LTV caps: 80% for residents (first property under AED 5M), 70% over AED 5M, 50% to 75% for non-residents.

Mortgage Registration Fee

A fee charged by the Dubai Land Department to register a mortgage against a property title — currently 0.25% of the loan amount plus a fixed AED 290 admin fee.

NOC (No Objection Certificate)

A formal statement issued by the developer confirming no outstanding service charges or restrictions on a property — required by the Land Department before transfer can take place.

Off-plan

A property purchased before construction is complete. Off-plan purchases are typically paid in instalments tied to construction milestones, with final drawdown at handover.

Overpayment

Additional repayments made above your scheduled EMI to reduce the loan balance faster. Most UAE lenders allow up to 20% of the original loan amount per year without penalty.

Pre-approval

An in-principle decision from a lender, valid for 30 to 90 days, stating the maximum loan amount they are willing to lend you. A pre-approval strengthens your negotiating position when making an offer.

Principal

The original loan amount borrowed, excluding interest. Each EMI reduces the principal by a small amount, accelerating as the loan amortises.

Property Valuation

An independent assessment of a property's market value, commissioned by the lender. The lender uses the lower of the valuation or the purchase price to calculate the LTV.

Refinancing

Replacing an existing mortgage with a new one — usually with a different lender — to achieve a lower rate, release equity, or improve terms.

Settlement

The full repayment of a mortgage, either at the natural end of the term or via early settlement. The UAE Central Bank caps the early settlement fee at 1% of the outstanding balance, max AED 10,000.

Stress Test

A lender's affordability check that simulates a higher interest rate to ensure the borrower can sustain repayments if rates rise. UAE banks typically stress-test 2% above the contractual rate.

Term

The length of time over which the mortgage is repaid. UAE mortgages allow terms up to 25 years for residents and 20 years for non-residents, subject to age limits at end of term.

Title Deed

The legal document issued by the Dubai Land Department evidencing ownership of a property. A new title deed is issued in the buyer's name on completion of transfer.

Trustee Office

A Dubai Land Department-approved registration office where property transfers and mortgage registrations are formally executed. The fee is currently AED 4,200 per transaction.

Variable Rate

A mortgage rate that moves in line with the EIBOR benchmark plus a fixed lender margin. The rate resets at agreed intervals — typically every 3 or 6 months.