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Final figures depend on bank approval and additional fees.
Buying a villa, townhouse or apartment is an exciting milestone. Touring communities, imagining your future home and exploring new neighbourhoods can feel amazing. But before getting emotionally attached to a property, the first question to ask is can I actually afford the mortgage?
Lenders in the UAE follow strict affordability rules, so understanding how your income, expenses and financial commitments fit into their criteria will help you set realistic expectations.
1. Assess Your Employment Income
Banks in the UAE calculate your mortgage eligibility based on your gross monthly income, which includes your basic salary plus fixed allowances.
If you receive bonuses or commissions, only some banks accept these, and usually only if:
- You’ve received them consistently for at least 6–12 months
- They are documented in salary certificates or bank statements
A good rule is to look at the past year’s earnings and take an average, keeping your estimate conservative.
Most banks allow your total monthly debt payments (including the new mortgage) to reach no more than 50 percent of your income, known as the DBR rule – Debt Burden Ratio.
2. Take Stock of Your Debt
Your existing liabilities have a direct impact on your mortgage approval.
Common debts that affect your eligibility:
- Car loans
- Credit card balances
- Personal loans
- Buy-now-pay-later instalments
Even small monthly payments reduce your borrowing capacity because banks count every liability toward your DBR.
If possible, aim to reduce or clear high-interest debts before applying, as this significantly improves approval chances.
3. Identify Your Monthly Expenses
Before deciding if you can afford a mortgage, build a clear picture of your actual monthly spending.
Make a list of your expenses such as:
- Groceries and dining
- Petrol or transport costs
- Clothing and personal care
- DEWA, internet and mobile
- Subscriptions and entertainment
- School fees if applicable
- Home maintenance and cleaning
If you purchase a home, add new costs like:
- Service charges (based on sq ft, paid annually)
- Home insurance
- Maintenance and repairs
- Moving and furnishing costs
The number you arrive at shows how much you really have left each month after essential spending and debt obligations.
4. Expect Change and Plan Ahead
Life circumstances change, and those changes affect affordability.
Consider the following questions:
- Are you planning to have children soon?
- Will one partner stop working, reduce hours or shift careers?
- Could your salary change or fluctuate?
- How stable is your job, industry or visa status?
- Would you still be comfortable covering the mortgage if your income changed?
Thinking ahead ensures you don’t stretch yourself too thin once you become a homeowner.
5. Maintain an Emergency Fund
Unexpected situations happen — job loss, salary delays, medical expenses, or urgent home repairs.
Most financial advisors recommend saving at least 3–6 months of:
Mortgage payment + monthly expenses
This safety cushion keeps you secure even during difficult months and prevents missed payments, which can affect credit scores or risk repossession.
Final Thoughts
Buying a home is one of the biggest decisions you’ll make, and affordability is more than a simple yes or no. By understanding your income, debt, lifestyle costs and long-term plans, you’ll know exactly what type of property and mortgage fit your situation.
Being financially prepared might not be as exciting as house hunting, but it ensures confidence and clarity when you finally select your dream home.
