Loan to value (LTV) is the ratio of a mortgage to the value of the property, expressed as a percentage. It determines how much a bank will lend and, by extension, how large a down payment the buyer must provide.
Where you’ll see it
You’ll see LTV in every mortgage application. UAE Central Bank rules set maximum LTVs that differ for UAE nationals and expatriates, for first versus subsequent properties, and by property value so the limit that applies depends on the buyer’s profile and is worth confirming with the bank.
Why it matters
LTV directly sets the minimum down payment. A lower maximum LTV means a larger cash deposit is required, which can be the deciding factor in whether a buyer can proceed. It also affects the bank’s risk and the terms offered.
What it is not
LTV is not the interest rate or the debt burden ratio — it measures the loan against the property’s value, not the borrower’s income. It is also not fixed across all buyers; the cap varies by category.
Example
If the maximum LTV for a buyer is, say, 80%, the bank lends up to 80% of the value and the buyer funds the remaining 20% as a down payment, plus fees on top.
Connected documents and parties
Valuation, mortgage offer, down-payment evidence; borrower, bank, Central Bank rules.
Going deeper: related reading: down payment and debt to income ratio.
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Last reviewed: June 2026