What is the maximum Loan Tenure for a Home Loan in the UAE?

What is the maximum Loan Tenure for a Home Loan in the UAE

What is the maximum Loan Tenure for a Home Loan in the UAE?

Dubai’s real estate market offers flexibility in payment plans, catering to various financial preferences. These plans allow you to choose a payment schedule that aligns with your financial ease. The maximum tenure for repaying your loan extends up to 25 years, providing ample time for comfortable and manageable installments. This extended period ensures that your investment in Dubai’s real estate remains a prudent and stress-free endeavor.

When securing a home loan in the UAE, numerous factors influence your ability to borrow and the terms of your mortgage. Among these factors, the loan tenure is a crucial aspect. In this blog post, we will delve into the specifics of the maximum loan tenure for home loans in the UAE.

What is Loan Tenure?

Loan tenure, or the mortgage term, refers to the duration or period a borrower commits to repay a loan, typically a home loan or mortgage. It is when the borrower makes regular payments to the lender to refund the borrowed amount, including interest. The loan tenure is an essential component of a loan agreement and has a significant impact on various aspects of the loan, including:

  1. Monthly Payments: The loan tenure directly affects the amount of your monthly payments. A longer tenure generally results in lower monthly payments, while a shorter term leads to higher monthly repayments.
  2. Total Interest Paid: The longer the loan tenure, the more interest you are likely to pay over the life of the loan. Shorter tenures can save big bucks on interest costs.
  3. Financial Planning: The loan options are crucial to your financial planning. A longer-term may offer more affordable monthly payments but may extend the period you have to make those payments. A shorter tenure requires higher monthly payments but enables you to repay the loan faster. So, firstly, check your financial statements.
  4. Loan Eligibility: Lenders consider the loan tenure when assessing a borrower’s eligibility for a loan. The length of the tenure may be influenced by factors such as the borrower’s credit history, income, and the type of mortgage selected.

What are the main factors of Loan Tenure in the UAE?

When considering the loan tenure for a home loan in the UAE, there are several key factors to consider to make an informed decision. These factors include:

  1. Financial Situation: Take a deep dive into your financial landscape; explore your income, expenses, and savings to understand your financial situation truly.
  2. Long-Term Financial Goals: Consider your long-term financial objectives and types of loans. Are you looking for lower monthly payments to maintain financial flexibility, or are you focused on paying off the loan quickly to reduce interest costs?
  3. Credit History: Your credit history and rating significantly determine the maximum loan tenure you qualify for. A strong credit history can open doors to longer loan terms and better interest rates.
  4. Interest Rates: Evaluate the type of interest rate (fixed or variable) and the loan rates. Variable rates may offer more flexibility but can result in fluctuations in monthly payments. You can check it from loan providers.
  5. Regulatory Restrictions: Be aware of any regulatory limitations on loan tenures set by the Central Bank of the UAE. These restrictions may vary over time and can impact your options.
  6. Lender Policies: Different lenders may have varying policies regarding loan tenures. Compare offerings from multiple lenders to find the one that aligns with your needs.
  7. Upfront Costs: Consider the upfront costs, including mortgage registration and arrangement fees, as they can affect your initial expenses.
  8. Age and Residency Status: Ensure that you meet the age criteria and residency status requirements for the type of borrower you are (UAE national, resident expat, non-resident).
  9. Property Type: The type of property you are purchasing can also influence your loan products. Residential properties may have different terms than commercial properties.
  10. Loan Amount: The total loan amount you need may influence the available loan repayment tenures. Higher loan amounts might come with different terms.
  11. Market Conditions: Stay informed about the real estate market conditions in the UAE, as they can impact property prices, interest rates, and your overall financial situation.
  12. Future Plans: Consider your plans for the future. If you anticipate changes in your income or family circumstances, these factors can affect your choice of loan tenure.
  13. Professional Advice: Seek guidance from financial experts and mortgage advisors who can help you make an informed decision based on your unique circumstances.

By carefully evaluating these factors and seeking professional advice, you can choose a loan tenure that aligns with your financial goals and ensures that your monthly mortgage payments are manageable within your budget.

How can you apply for loan tenure for a home loan in the UAE?

Applying for a loan tenure for a home loan in the UAE involves several steps and considerations. Let’s go through some main points:

Determine Your Eligibility: Before applying for a home loan in the UAE, ensure you meet the age and income criteria specific to your residency status, as mentioned earlier:

  • UAE nationals: 21-70 years of age
  • Resident ex-pats: 21-65 years of age (up to 70 if self-employed).
  • Non-residents: 25-65 years of age

Creditworthiness: Assess your credit history and rating. A good credit history can make you eligible for longer loan tenures and better terms.

Choose a Lender: Research and compare mortgage lenders in the UAE. Think about things like interest rates, fees, and customer service. eMortgage, as mentioned earlier, is one option to explore.

Gather Documentation: Lenders typically require various documents, including:

  • Bank statements
  • Salary certificates
  • Business period records (for self-employed individuals)
  • Credit reports
  • Proof of income
  • Property valuation reports

Pre-Approval: Many lenders offer a pre-approval process. It’s advisable to go through this process to determine your borrowing capacity and the maximum loan tenure you qualify for.

Select Your Loan Type: Choose between fixed-rate and variable-rate mortgages. Each type comes with its terms and conditions, including maximum loan tenures.

Loan Application: Submit your loan application to the chosen lender. Ensure that you have all necessary documentation and information ready.

Approval and Offer: If your application is approved, the lender will provide you with a mortgage offer that includes the loan tenure, interest rate, and other terms. Review this offer carefully.

Acceptance: Once satisfied with the terms, accept the mortgage offer and sign the necessary agreements.

Property Registration: After acceptance, the mortgage lender will assist in registering the mortgage on the property with the relevant land authority. This involves paying the mortgage registration fee.

Repayment Planning: With the loan tenure established, plan for your monthly payments and ensure you have a clear understanding of your financial obligations.

Loan Disbursement: The lender will disburse the loan amount to the seller or developer of the property.


In conclusion, the maximum loan tenure for a home loan in the UAE is influenced by various factors, including credit history, annual income, and the type of mortgage. eMortgage, a leading mortgage provider in the UAE, offers a wide range of mortgage options to suit your needs, along with expert advice and professional assistance to help you make an informed financial decision. By considering these factors and collaborating with eMortgage, you can secure a home loan with a suitable loan term and comfortable monthly payments.