Top tips to ensure your mortgage loan application gets approved
Dubai’s lucrative job market, business-friendly policies and thriving economy make it a prime destination for real estate investment. The government’s investor-friendly policies have led many to buy homes with an eye on future profits. However, buying property via a mortgage loan can have pitfalls. To help you navigate the process smoothly, here are some expert tips for mortgage loan application approval in UAE.
TOP TIPS TO AVOID GETTING YOUR MORTGAGE LOAN APPLICATION DENIED IN THE UAE
Government policies are generally investor friendly and encourage banks to assist loan seekers. At the same time, there are strict regulations and rules that all parties have to adhere to ensure no one faces any monetary losses.
If you are planning to apply for a mortgage, read on as we answer the question – how to avoid getting your mortgage loan application denied!
Maintain a Strong Credit Score
Your credit score is among the most important factors in securing a mortgage loan application approval UAE. Lenders check your credit history to assess your repayment behaviour. A low score can result in rejection or high interest rates.
How to improve your credit score:
- Pay bills and credit card balances on time.
- Avoid excessive debt and multiple loan applications.
- Check your credit report for errors and dispute inaccuracies.
Etihad Credit Bureau (AECB) issues credit reports and credit scores in Dubai.
Manage Your Debt-to-Burden Ratio (DBR)
Banks in the UAE follow a strict Debt-to-Burden Ratio (DBR) policy, ensuring your total monthly loan repayments do not exceed 50% of your monthly income.
How to improve your DBR:
- Reduce existing debts before applying for a home loan.
- Avoid taking on new financial commitments before your application.
- Increase your income to improve your financial standing.
Maintain a Healthy Loan-to-Value (LTV) Ratio
Lenders in the UAE follow a Loan-to-Value (LTV) ratio, which determines how much financing you can secure based on the property’s value. The lower your LTV, the better your chances of approval.
Standard LTV ratios in the UAE:
- For first-time buyers: Up to 80% financing for properties under AED 5 million.
- For non-residents or second-home buyers: Maximum financing of 60–70%.
To improve your LTV ratio, save for a higher down payment, reducing lenders’ risk.
Pass the Mortgage Stress Test
Interest rates fluctuate over time. Banks run a stress test to ensure you can afford repayments even if rates rise.
To pass the stress test:
- Choose a mortgage with fixed or capped interest rates.
- Show stable income sources to prove repayment ability.
- Keep additional savings as a financial buffer.
Provide Accurate and Complete Documentation
One of the most common reasons for home loan rejections is incomplete or misleading information. Lenders conduct thorough background checks and any discrepancies can result in a denial.
Ensure mortgage loan application approval UAE by submitting the following:
- Salary certificates and bank statements
- Proof of employment and residency status
- Correct and updated personal details

Choose the Right Mortgage Plan and Lender
Different banks offer different mortgage products. Some have flexible terms, while others require high down payments. Researching and comparing lenders helps in selecting the most suitable option.
What to consider:
- Interest rates (fixed vs variable)
- Loan tenure and repayment flexibility
- Early settlement charges and other fees
Meet the Employment and Age Requirements
Lenders prefer applicants with stable employment and income sources. A history of frequent job changes can raise red flags. Most banks require applicants to have at least six months to three years of continuous employment in the UAE. If you are self-employed, banks may require a longer financial history and additional documentation.
Additionally, age restrictions apply:
- Minimum age: 21 years.
- Maximum age:
- UAE nationals: 70 years at the end of the mortgage term
- Expatriates: 65 years at the end of the mortgage term
To improve your chances of approval:
- Maintain continuous employment for at least three years.
- If self-employed, provide audited financial statements for the last two years.
- Avoid major career changes before applying for a mortgage.

Avoid Mortgage Loan Decline by Choosing the right Property
Banks also evaluate the property you intend to buy. Your loan may be denied if the property is in an unapproved area or has legal issues.
To avoid issues:
- Choose a property in a bank-approved area
- Ensure there are no legal disputes regarding ownership
- Verify if the project is completed or under construction
BEING A GUARANTOR TO A LOAN DEFAULTER
If you have been a guarantor to a loan defaulter previously, this is one of the signs your mortgage will be denied. So, be careful when deciding who you would provide a guarantee for. It impacts your credit score as well as your chances of getting a mortgage.
FAQS ABOUT TIPS TO AVOID GETTING YOUR MORTGAGE LOAN APPLICATION DENIED
WILL I LOSE MY DEPOSIT IF I AM DENIED A MORTGAGE?
This depends on the contract you sign with the agent and seller. Make sure you are clear on the terms at the time of signing.
WHAT TO DO IF YOUR MORTGAGE APPLICATION IS DENIED?
The answer to this question depends upon the reasons your mortgage was denied. For instance, you can work on improving your credit score or LTV. Moreover, you can also seek a different mortgage programme or a different lender.
How much down payment is required for a mortgage in the UAE?
First-time buyers need at least 20% of the property value as a down payment. Non-residents or those buying a second home may need a higher percentage.
WHAT ARE THE DIFFERENT TYPES OF MORTGAGES AVAILABLE IN DUBAI?
Check out our list of the types of mortgages in Dubai to get a basic understanding.
Can nationality affect mortgage approval in the UAE?
Some banks have restrictions based on nationality, especially for applicants from high-risk countries. It’s best to check with different banks for eligibility criteria.
BUYING A PROPERTY – CASH VS MORTGAGE, WHICH IS BETTER?
Read our explainer, which outlines the pros and cons of mortgages vs cash purchases.
These are our basic tips to avoid getting your mortgage loan application denied. By maintaining a strong credit score, keeping your debts low and ensuring all documents are accurate, you can ensure mortgage loan approval UAE.
Getting a mortgage loan needs a fair bit of work. You can start your process by reading our guide on how to get a mortgage in Dubai. You can always get assistance from loan officers to help you through the process.