Commercial Mortgages in the UAE: LTV, Rates & Eligibility Explained
Real LTV limits, rate ranges, and eligibility, not a landing-page blurb.
Most commercial mortgage pages in the UAE are landing pages, not guides - a product blurb and a "contact us" button, with none of the actual numbers a business needs to plan around. This guide covers what a commercial mortgage actually is, realistic LTV and rate ranges, what documentation banks want, and how the process differs from a residential mortgage.
What counts as a "commercial" mortgage here?
Financing to purchase, refinance, or develop a property held or used by a business - an office, warehouse, retail unit, or an investment property purchased through a company rather than as an individual. This is distinct from a personal residential mortgage, both in how it's regulated and how banks assess it.
The regulatory picture - and where it stops applying
The UAE Central Bank sets official loan-to-value (LTV) limits, but only for residential mortgages - including residential property bought for investment purposes:
- UAE nationals: up to 65% LTV on a second or subsequent residential property, or one bought for investment.
- Expatriates: up to 60% LTV on a residential investment property.
- Lenders must also deduct at least two months' rental income from the debt-burden calculation on investment property, to account for vacancy risk.
What drives your actual rate and LTV
- Property type - standard office or retail space is generally viewed more favorably than specialized industrial, hospitality, or single-tenant assets.
- Business trading history and financials - an established company with strong financials typically gets better terms than a newer entity.
- Loan tenor - UAE commercial mortgage terms typically run 5-15 years, occasionally extending toward 20 for strong applicants.
- Owner-occupied vs. investment - a business buying space it will occupy itself is often viewed differently than a company acquiring property purely as an investment asset.
- Existing banking relationship - banks generally offer sharper terms to businesses that already hold accounts or facilities with them.
Rates move with the broader interest rate environment - ask your bank or Fintrust for a current indicative rate for your specific profile rather than anchoring to any fixed number here.
Documentation banks typically ask for
- Valid trade license and company incorporation documents
- 12-24 months of company financial statements and bank statements
- Details of the specific property (valuation, title, property type)
- Business plan or rationale for the purchase
- KYC documentation for company owners/signatories
- Existing facility/loan statements, if applicable
Want a realistic LTV and rate indication for your property?
Talk to a Fintrust advisor →The application process, realistically
- Initial assessment - the bank or broker reviews your financials and the property to give an indicative LTV/rate range.
- Property valuation - an independent valuation is commissioned, typically at the borrower's cost.
- Formal application and underwriting - full documentation submitted; commercial underwriting is generally more document-intensive than residential.
- Offer and legal process - mortgage registration and security documentation before funds release.
- Disbursal - timing depends on how quickly valuation, legal, and documentation stages clear.
Fees to budget for beyond the rate itself
- Valuation fee - for the independent property assessment
- Legal/registration fees - mortgage registration and related legal documentation
- Arrangement/origination fee - often a percentage of the loan amount, varies by bank
Ask for a full, itemized cost breakdown before committing - the headline rate is rarely the full picture.
How this differs from a residential mortgage
Commercial underwriting weighs the business's financial strength and the property's income-generating potential more heavily than personal income, and documentation requirements are generally more extensive. Valuation methodology also differs - commercial assets are often valued partly on income potential rather than purely comparable sales.
Why work with a consultancy like Fintrust?
Comparing real LTV and rate indications across banks rather than accepting the first offer, understanding which lenders are actually active in your specific property type, and helping you read the full fee picture before you commit.
About the author
Ajith Prasad is the founder of Fintrust Consultancy, an independent banking and financial consultancy based in Ajman, UAE, built on 25+ years inside the UAE banking and financial services industry - most recently as Manager of Issuance and Acquiring at Mercury Payment Services LLC, with earlier leadership roles at Standard Chartered, Dunia Finance, Banque Misr, and National Bank of Dubai. Full bio →
Frequently asked questions
There's no single published rule for commercial assets specifically - expect a range broadly similar to the regulated residential-investment limits (roughly 50-65%), confirmed only at underwriting for your specific business and property.
Commonly 5-15 years, occasionally extending toward 20 for strong applicants.
Not always, but banks generally offer sharper terms to businesses with an existing account or facility relationship.
The residential LTV figures cited above reflect UAE Central Bank mortgage loan regulations as of research date; confirm current limits directly, as regulatory parameters can be updated.
Related guides:
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