AqarumAqarum
    Finance & mortgage
    GCC-wide
    Updated 2026-04-19

    Mortgage Guide for GCC Property — Rates, LTV & Eligibility (2026)

    How mortgages work across the GCC: typical LTV, rates, tenor, fees and required documents for residents and non-residents.

    TL;DR

    GCC mortgage rates in 2026 range from 4.5% to 7%, with loan-to-value of 75–80% for residents and 50–65% for non-residents. Standard tenor is 20–25 years and most banks require the loan to end before age 65–70. Fees total 1–2% of the loan.

    Mortgage rates by country (2026)

    • UAE: 4.5%–6.5% (variable), 5.5%–7% (5-year fixed)
    • Saudi Arabia: 5%–6.5% (Murabaha or Ijara structures)
    • Bahrain: 4.5%–6%
    • Qatar: 5%–6.5%
    • Kuwait: 5.5%–7% (CBK-capped)
    • Oman: 5.5%–7%

    Most GCC banks offer Sharia-compliant alternatives to conventional mortgages. The economic outcome is similar; documentation differs.

    Documents required

    • Passport + visa / Emirates ID / Iqama
    • 6 months of salary slips
    • 6–12 months of bank statements
    • Proof of address
    • Liability letter from existing lenders
    • Property valuation (ordered by the bank)

    Self-employed buyers also need: trade licence, audited financials and 12 months of business statements.

    Fees to expect

    • Processing fee: 0.5%–1% of loan
    • Valuation: USD 500–800
    • Mortgage registration: 0.25%–0.5% of loan (varies by country)
    • Insurance (life + property): 0.3%–0.5% of loan annually
    • Early settlement: 1% of outstanding (capped in UAE & Bahrain)

    How much can I borrow?

    Most GCC banks cap repayments at 50% of net monthly income (DBR — Debt-Burden Ratio). Salary multiple is typically 7–8×. Use the mortgage calculator on each Aqarum property page for a quick estimate before applying.

    Frequently asked questions

    Can I get a mortgage as a non-resident?

    Yes — but with stricter terms. Non-residents typically receive 50–65% LTV, slightly higher rates, and need to be from an approved nationality list. Dubai, Abu Dhabi, Bahrain and Qatar are the most active markets for non-resident lending.

    Are GCC mortgages Sharia-compliant?

    Both options exist. Conventional mortgages charge interest. Islamic mortgages use Murabaha (cost-plus sale) or Ijara (lease-to-own) structures — the bank buys the property and sells/leases it to you. Total cost is comparable; the legal form differs.

    Can I switch lenders to get a better rate?

    Yes. Refinancing (called "buyout" in the UAE) is common. Expect a 1% early-settlement fee on the old loan plus standard origination fees on the new one. Worth doing if you save 0.75%+ on the rate.

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