RERA Mortgage & Finance in Dubai Real Estate

Question 1

What is the maximum LTV ratio permitted for a UAE national purchasing their first residential property valued at AED 3 million?

Accepted Answer

80%

Answer

70%

Answer

75%

Answer

85%

Question 2

What is the maximum LTV ratio for a non-UAE national purchasing their first residential property in Dubai valued at AED 4 million?

Accepted Answer

75%

Answer

60%

Answer

65%

Answer

70%

Question 3

What is the Dubai Land Department (DLD) fee for registering a mortgage on a property?

Accepted Answer

0.25% of mortgage value + AED 290

Answer

0.50% of mortgage value + AED 580

Answer

1% of property value + AED 500

Answer

0.25% of property value + AED 580

Question 4

Which authority issued the regulations governing maximum LTV ratios for residential property mortgages in the UAE?

Accepted Answer

UAE Central Bank

Answer

Dubai Land Department (DLD)

Answer

RERA

Answer

Ministry of Economy

Question 5

What is the maximum LTV for any buyer — regardless of nationality — purchasing a second residential property in Dubai?

Accepted Answer

60%

Answer

50%

Answer

65%

Answer

70%

Question 6

What is the maximum LTV permitted when financing the purchase of an off-plan property in Dubai?

Accepted Answer

50%

Answer

40%

Answer

60%

Answer

65%

Question 7

In an Islamic mortgage structure known as Diminishing Musharaka, how does the buyer eventually acquire full ownership of the property?

Accepted Answer

Through gradual purchase of the bank's equity share over time

Answer

By paying a lump sum at end of term

Answer

By renting the property from the bank until ownership transfers

Answer

Through assignment of the bank's interest to a third party