Thinking about buying a home in Dubai this year? If you’re an expat, you’re in good company. With Dubai’s real estate market buzzing in 2025 and more people eyeing long-term investments here, the timing of your home loan application could make a big difference.
So, when exactly is the best time to apply for a home loan in Dubai for expats? We’ll break down interest rates, new regulations, and key market trends to help you plan wisely—with insights from Amplus Mortgage Consultants.
Dubai’s Real Estate Market in 2025: Key Trends for Expats
Dubai’s property market is off to a strong start this year. Demand for both rental and owned homes is steadily growing, partly thanks to population growth and Dubai’s continued appeal for professionals and families alike. In fact, Dubai’s population crossed 3.8 million this year, and with more people comes more demand for housing.
Rental yields are holding firm at an attractive 5%–7%, and property prices, though climbing, are still considered competitive compared to global cities. All of this creates a tempting backdrop for expats looking to put down roots—or just make a smart investment.
Interest Rates: What Should You Expect in 2025?
Let’s talk numbers. Interest rates are one of the biggest factors when it comes to taking a house loan in Dubai.
Right now, the Central Bank of the UAE has kept its benchmark rate steady at 4.40%, following the U.S. Federal Reserve’s lead. That’s good news—it brings a bit of predictability. Fixed mortgage rates are hovering around 3.79%, while variable rates are a bit more fluid and tied to economic shifts.
What’s interesting is that experts are predicting a possible dip in interest rates during the second half of 2025. So if you’re not in a rush, you might actually benefit from waiting a little and locking in a better rate later in the year.
2025 Mortgage Regulations: What Expats Should Know
Here’s where it gets a bit more technical—but important!
In 2025, a few regulatory tweaks came into play that impact how much you’ll need upfront when applying for a home loan in Dubai for expats:
- Upfront Costs Just Got Higher
Earlier, some banks used to cover additional costs like the 4% Dubai Land Department (DLD) fee and 2% agent commission. But not anymore. Now, buyers are expected to handle those fees out of pocket, so you’ll need to budget about 6% more than before for those early expenses.
- Loan-to-Value (LTV) Rules
Planning to buy a property under AED 5 million? The maximum LTV is set at 80%. If it’s over AED 5 million, the LTV drops to 70%. This means you’ll need to contribute a larger down payment for higher-value properties.
These changes don’t mean you should hold off entirely, but they do mean you need to be prepared. This is where having the right mortgage partner helps. Amplus Mortgage Brokers can walk you through these updates, so you’re not caught off guard.
Should You Apply Now or Wait?
That brings us to the key question. The answer? It depends.
Here’s a quick way to think about it:
- Apply now if you want to secure a fixed rate before any surprise hikes happen—or if you’ve found the perfect property and don’t want to risk losing it. Just keep in mind you’ll need more savings upfront because of the new rules.
- Consider waiting if your timeline is flexible. If the predicted rate cuts do happen in the latter half of 2025, you might lock in a lower monthly payment. However, waiting too long might mean facing higher property prices.
Either way, your best move is to get pre-approved and understand your options early. This gives you flexibility and bargaining power when the right property shows up.
It’s All About Planning Smart
Timing your Dubai home loan application for non-residents isn’t just about catching the lowest interest rate, it’s about understanding your finances, the market, and the real costs involved. Dubai’s real estate scene in 2025 is full of potential, especially for expats, but a little strategy can go a long way.
Whether you’re ready to dive in or just exploring your options, Amplus Mortgage Consultants are here to help you navigate every step. From understanding the updated LTV ratios to calculating your new upfront costs, we’ve got your back.
Need expert guidance or want to compare home loan options tailored to your needs? Reach out to Amplus Mortgage Brokers to:
- Get personalised mortgage advice
- Understand the latest 2025 home loan rules
- Compare rates from top UAE lenders
