The loan-to-value (LTV) is basically the percentage of the loan amount to the appraised value of the property.

The LTV is an offering ratio that financial institutions study before approving a mortgage and is calculated by dividing the sum of your loan into the total value of your property. For example, if you have a principal mortgage of Dh 900,000 and the property value is Dh 1,200,000, the LTV is 75 percent.

As per the central bank regulation if a UAE national is buying a property value less or equal to AED 5 million, the qualifying LTV is 80 percent of the value of the property. If, the value of the property is more than AED 5 million the maximum is 70 percent of the property value. Further, if the citizen of UAE opts for a mortgage to buy another home or investment property, the LTV will drop to 65 percent towards the property value. Similarly, for expats living in UAE, buying a property less or equal value of AED 5 million the maximum LTV is 75 percent of the property value and if the value is greater than Dh 5 million, the maximum he/she can borrow 65 percent of the property value. For second mortgage the LTV is defined up to 60 percent only. The above LTV is applicable for only ready properties in the emirates.

On the other hand, for off-plan construction, the funding is limited to 50 percent only, regardless of purpose, value, and category of the purchaser.

So, if you planning to buy a property in Dubai call our certified mortgage consultant. They will help you to get the valued advice and the best mortgage consultancy in Dubai. 4C Mortgage Consultants provide best mortgage consultancy for a resale property, new purchase property, off plan purchase, construction mortgage, project finance, commercial mortgage, buyout, equity release, Non-UAE Resident mortgage in Dubai. Follow us on Twitter, Facebook, and LinkedIn and keep yourself update.