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An illustration, not a bank offer. Loan-to-value, lending base, rate and fees are set by the lender; the cost model is ours and explained below.
The default example explained
Worked example Price AED 2,000,000, valuation AED 1,800,000, 65 % loan-to-value on the lower of the two, ready property, nothing paid yet, 5.5 % over 25 years, AED 2.5734 per CAD (the current Bank of Canada rate, updated automatically).
- Loan: 65 % of AED 1,800,000 = AED 1,170,000. Had the valuation matched the price, the loan would have been AED 1,300,000.
- The valuation gap: AED 130,000 more cash, about CAD 50,517.
- Closing costs in our model: AED 149,040, of which AED 80,000 is the 4 % transfer fee and AED 42,000 the agent commission with VAT.[2][3][4]
- Cash still needed: AED 979,040, about CAD 380,446; with a 10 % weaker Canadian dollar CAD 422,718.
- Monthly payment AED 7,185, about CAD 2,792; CAD 3,070 one point higher and CAD 3,360 two points higher.
Bank practice Lending on the lower of price and valuation is common practice among lenders, not a rule of the UAE Central Bank. Some lenders work differently, which is why the calculator lets you switch. 65 % is only possible where the bank treats the purchase as a first home; for a second home or investment property the ceiling is 60 %, and many lenders go lower for non-residents. Official rule The Central Bank does require a valuation before every mortgage, caps the term at 25 years and sets loan-to-value ceilings, 60 % for a second home or investment property.[1]
Formulas and assumptions
| Figure | Formula |
|---|---|
| Lending base | the lower of price and valuation, or the price, depending on the lender |
| Loan | lending base × loan-to-value |
| Cash toward the price | price − loan |
| Valuation gap | price × loan-to-value − loan (zero if the bank lends on the price) |
| Closing costs, ready property | price × 4 % + 520 + 4,200 + price × 2 % × 1.05 + 2,000 + 2,110; with a loan plus loan × 0.25 % + 270 + 2,730 + loan × 1 % × 1.05 |
| Closing costs, off-plan handover | 2,110; with a loan plus loan × 0.25 % + 270 + 2,730 + loan × 1 % × 1.05 |
| Cash still needed | price − loan − amount already paid + closing costs |
| Weaker CAD | cash ÷ (AED per CAD × (1 − shock)) |
| Monthly payment | annuity: loan × i ÷ (1 − (1 + i)^−n), i = annual rate ÷ 12, n = months |
Worked example The fixed items are our model: registration trustee AED 4,200 with VAT, developer NOC AED 2,000, valuation AED 2,730 with VAT, utility deposit and connection AED 2,110, bank processing fee 1 % of the loan plus VAT.[8] The default rate of 5.5 % sits in the middle of the range we use for non-residents in our examples.[7] The default exchange rate combines the latest Bank of Canada rate, loaded automatically, with the dirham's peg.[5][6]
For what the result means for your income, read T4 salary, NOA and CAD income or Incorporated owners and the self-employed, and for off-plan financing the handover payment. Our general mortgage calculator for non-residents works in other currencies.
Frequently asked questions
Why does the valuation matter so much?
Why can't closing costs be added to the loan?
Which loan-to-value should I enter?
Which exchange rate should I use?
Does this work for an off-plan handover?
Sources
- Central Bank of the UAE, Regulations Regarding Mortgage Loans: maximum loan-to-value for expatriates 80 % on a first home under AED 5 million, 70 % above it, 60 % on a second or investment property and 50 % on off-plan property; debt burden ratio up to 50 % of gross income; maximum tenor 25 years; valuation required before the loan. Non-residents are not defined as a separate category. rulebook.centralbank.ae
- Dubai Land Department, Property Sale Registration: transfer fee of 4 % of the price (2 % each for buyer and seller by law; in practice the buyer usually pays all of it) and fixed fees for title deed and site plan. dubailand.gov.ae
- Dubai Land Department, Request for Mortgage Registration: 0.25 % of the loan plus AED 270. dubailand.gov.ae
- The National, 25 January 2025: following an instruction of the UAE Central Bank, from 1 February 2025 banks no longer finance the DLD transfer fee and the agent commission. thenationalnews.com
- Bank of Canada, daily exchange rates (USD/CAD daily average, read automatically through the Bank's Valet interface): the CAD figures on this page are recalculated from the latest published rate; the figures in the page source use 1 USD = 1.4271 CAD (9 October 2026). bankofcanada.ca
- Central Bank of the UAE, monthly exchange rate table: US dollar at AED 3.6725 (the dirham is pegged to the US dollar). Together with the Bank of Canada rate this gives the value of one Canadian dollar in dirhams used on this page. centralbank.ae
- Nexus Bridge Capital, Dubai mortgage rates and EIBOR: for non-residents our examples assume a fixed rate of 5 to 6 %. nexusbridgecapital.de
- Nexus Bridge Capital, purchase costs in Dubai, every fee sourced: the cost model behind this calculator. nexusbridgecapital.de
Initial financing assessment
If you live in Canada, or are a Canadian living elsewhere, and are looking at a property in Dubai, fill in this short form. We will tell you which questions need answering before a lender is approached. This is not a credit approval or an offer of finance, and it commits you to nothing. You will hear from us within one business day at the latest.