Loans in Dubai
From mortgage rates to car loans and choosing the right vehicle for life in the UAE, here’s what to expect.
Mortgage Loans in Dubai
Expats can apply for mortgage finance in Dubai through a range of local and international banks. Loan-to-value (LTV) ratios are typically capped at 80% for residents and 50–60% for non-residents, and your eligibility will depend on income, employment status, and the property value.
Interest rates vary between fixed and variable, with fixed rates commonly starting from around 2.2%, depending on the lender and loan term. It’s worth noting that Islamic mortgages (Sharia-compliant options) are also widely available and structured differently, usually through rent-to-own agreements.
Most mortgages require:
- A valid UAE residency visa
- Salary certificate or proof of income
- Bank statements (typically 6 months)
- A minimum deposit (usually 20% of the property value)
If you’re new to Dubai, you may want to rent first while you build up local credit history and explore different areas before buying.
Car Loans and Dealer Finance
Owning a car in Dubai is often seen as a necessity due to the city’s size and climate. Many residents choose to finance their car purchase through bank loans or dealer financing, particularly for high-end models.
Main dealers often offer tailored finance packages, especially for popular choices like the Mercedes G-Wagon, Range Rover, or Tesla. Loans are typically offered for up to 5 years, with interest rates around 2.5%–4% per annum, depending on the lender, your income, and the value of the car. New G wagon, G63 on a 5 year deal at an interest rate of 2% and the 5 year manufacturing warranty
To apply for a car loan, you’ll usually need:
A valid UAE driving licence
Emirates ID
Salary certificate
A residency visa
Bank statements
Be mindful that car insurance is mandatory, and premiums can vary significantly based on the vehicle model and driver profile.
Choosing the Right Car in Dubai
Dubai roads are wide, well-maintained, and fast-moving. Many expats opt for: If you become a UAE resident and hold a UK driving license, you will need to convert it to an Emirates license.
Luxury SUVs
Ideal for comfort, road presence, and occasional desert trips
Sporty saloons and coupes
Popular for their performance and prestige
Electric vehicles
Increasingly common due to sustainability incentives and reduced running costs
However, owning a car comes with responsibilities—traffic fines can be high, parking isn’t always straightforward, road rage is not tolerated and comes with serious penalties, and weather can be tough on vehicles.
Don’t Rush – Use Uber/ Careem First
While owning a car is common, we recommend not rushing into a purchase when you first arrive. Spend some time getting used to the road systems, signage, and local driving habits before deciding what kind of vehicle suits your lifestyle.
Services like Uber and Uber Premium are reliable, widely available, and often more cost-effective than leasing or buying straight away. Once you’ve settled in and understand your commuting needs, you’ll be in a much stronger position to choose the right car and finance option.