Explore Damac Hills 2 Clusters | Your Dream Community Awaits

Thinking of buying another property in Dubai-but already have a mortgage on the first? You’re not alone. Whether it’s for investment, upgrading, or unlocking equity, more homeowners in the UAE are exploring the idea of taking out a second mortgage. But a common question stops them in their tracks: How many mortgages can you have in Dubai?

The short answer: there’s no legal limit. But what matters is what the banks allow and what your finances can handle.

In this guide, we’ll break down everything you need to know. From what a second mortgage in Dubai means, to how much down payment is typically required, and what rules apply when you're stacking more than one home loan.

Whether you’re buying to grow your portfolio or just considering your options, this isn’t about theory-it’s about what’s possible, what’s permitted, and how to move forward with clarity. If you're looking for smart answers backed by real-world rules, you're in the right place.

What Is a Second Mortgage in Dubai?

A second mortgage in Dubai isn’t a second chance-it’s a second opportunity. Simply put, it’s a new loan secured against a property you already own, often used to finance a new home, tap into equity, or cover large expenses like renovations or investments.

Unlike refinancing-which replaces your original mortgage second mortgage leaves the first in place. You’re not tearing up the old deal. You’re layering on a new one, usually with a different lender and its terms. And because it’s a separate agreement, it comes with its interest rate, repayment plan, and risk profile.

In the UAE, second mortgages are becoming more common, especially for investors expanding their portfolios or homeowners leveraging the rising value of real estate. But approval isn’t automatic. Lenders will want to see equity in your existing property, a solid credit profile, and clear repayment capacity.

If you’ve been wondering whether a second mortgage in Dubai is even possible, the answer is yes. The better question is: is it right for you, and are you ready for what comes with it?

Is Having Multiple Mortgages Legal in Dubai?

Yes, you can legally have more than one mortgage in Dubai-and you won’t find a law that says otherwise. The UAE doesn’t place a hard cap on how many mortgages a person can hold. What limits you isn’t the number-it’s the math.

Banks and lenders consider several key factors before approving an additional mortgage, including your income, existing debt obligations, and the Loan-to-Value (LTV) ratios permitted by the Central Bank. If you already have one home loan, getting another depends on how much you’ve repaid, how much equity you’ve built, and whether you can comfortably take on more.

The more mortgages you stack, the more carefully lenders assess your debt-to-income ratio. They’ll want to know: Are you over-leveraged? Is this second purchase sustainable? In many cases, lenders will also require that the first mortgage provider issue a No Objection Certificate (NOC) if the second loan is secured against the same property.

So, can you take out a second-or even third-mortgage in Dubai? Legally, yes. Financially, it depends. The key is not whether it’s allowed, but whether it makes sense for your situation.

UAE Mortgage Regulations & LTV Limits

In the UAE, owning more than one property is perfectly legal, but financing it comes with a few guardrails. That’s where LTV (Loan-to-Value) ratios step in.

For a first mortgage, most expat buyers can borrow up to 75% of the property value if it’s under AED 5 million. Go above that, and the cap drops to 65%. For UAE nationals, the ratios are slightly higher. But once you move into second mortgage territory, the rules get stricter.

In most cases, the maximum LTV for a second property sits at 60%. And if you’re buying off-plan, regardless of whether it’s your first or fifth home, financing usually tops out at 50%. These numbers aren’t random-they’re designed to keep the market stable and borrowers realistic.

That’s why even if you're eligible for another loan, you’ll likely need a larger down payment and a stronger income-to-debt profile. The more you borrow, the more closely lenders look-not just at your documents, but at the bigger financial picture.

Typical Down Payment & Affordability Considerations

If you’re thinking of taking out a second mortgage in Dubai, here’s what most people want to know first: how much cash do I need upfront?

For a second property, the required down payment is usually higher, often around 40% of the purchase price, especially for expats. That’s because lenders see it as a bigger risk. You already have one loan; now you're asking for another. So they want to see that you’re putting more of your skin in the game.

But the real question isn’t just how much the down payment is-it’s, can you afford it? Not just the upfront cost, but the monthly reality. Mortgage payments, service charges, unexpected repairs-they all add up. A second home can be an asset, or it can quietly stretch you thin.

That’s why many buyers use a simple framework to check affordability before they move forward. Some follow the 20/30/3 rule-where your down payment should be at least 20%, your monthly payments stay under 30% of your income, and the property price is no more than 3x your annual income. It’s not the law, but it’s a good lens.

Because the goal isn’t just to qualify for the loan. It’s to live with it.

Who Can Get a Second Mortgage in the UAE?

Getting a second mortgage in the UAE isn’t just about asking the bank-it’s about showing them you’re ready. And while there’s no special category of buyers who can or can’t apply, there are a few things lenders look for before saying yes.

If you’re a UAE resident, employed or self-employed, and have a clean credit history, you’re already in a strong position. But even non-residents and foreign investors can qualify, provided they meet the income requirements and have proper documentation. A growing number of expats are using second mortgages in Dubai to grow their portfolios or upgrade to larger homes.

What do banks want to see? A steady income. A solid debt-to-income ratio. A clear paper trail. If your first mortgage has been well-managed, that works in your favor. If you’ve got existing equity in your first property, that’s even better-some lenders allow you to leverage it to secure better terms on the second.

You’ll need to show the basics: proof of income, residency (or visa status), and the usual ID documents. If you’re self-employed, audited financials go a long way.

In short, second mortgages in the UAE aren’t off-limits; they’re earned. And the more prepared you are, the easier the process becomes.

Benefits & Risks of Taking Out a Second Mortgage

Taking on a second mortgage in Dubai can open doors-but only if you walk through them with a clear head.

At its best, a second mortgage gives you options. Maybe you're buying a second home, maybe you're investing in something off-plan, or maybe you're simply using the equity you've built to take your next step. You’re not starting from scratch-you’re building on something solid.

You also keep your first mortgage as is. That can be useful if it’s at a good rate, or if the new loan is tied to a different property altogether. You get room to move without undoing what’s already in place.

But it’s not all upside. A second mortgage usually comes with tighter terms and a higher interest rate. It adds another repayment to your month, and that changes the way your finances feel. If anything unexpected hits-job changes, market dips, or personal shifts-you’ll feel it more.

None of this means a second mortgage is a bad idea. It just means you need to be honest about why you’re doing and what it’ll take to carry it forward. Because the cost of the loan isn’t just in the numbers. It’s in the peace of mind you keep or lose once the ink is dry.

How to Apply for a Second Mortgage in Dubai

Applying for a second mortgage in Dubai isn’t something you rush through-but it’s not a maze either. If you’ve done it once before, most of the steps will feel familiar. If it’s your first time doubling up, here’s what the road usually looks like:

Start with your numbers.

Before you talk to anyone, run the basics. What’s your income? What are you already paying each month? How much equity do you have in your current property? If the math feels tight, the banks will feel it too.

Speak to someone who knows the landscape.

A good mortgage advisor can make this ten times easier. They’ll tell you which lenders are open to second mortgages, what terms you might expect, and where the roadblocks usually show up.

Get your paperwork ready.

Think of payslips, bank statements, ID, and any documents tied to your first mortgage. If you’re self-employed, add in proof of business income. Better to have too much than to be missing something important.

Ask your current lender for a No Objection Certificate.

If you’re borrowing against the same property, this is a must. No NOC, no second loan. It’s one of those quiet steps that can slow everything down, so ask early.

Apply and wait for pre-approval.

Once everything’s in, the bank will review it and-if all goes well-give you a green light. That’s when things move forward: property valuation, final approval, then transfer and registration with the Dubai Land Department.

It’s not a quick process. But with the right support, it’s not a stressful one either.

About Mada Properties

At Mada Properties, we don’t just sell homes-we help you understand them.

Whether you're buying your first apartment or considering a second mortgage, we know the process can feel like a lot. That’s why we start with clarity. No pressure. No jargon. Just the kind of honest guidance that helps you make decisions you won’t second-guess later.

We work across Dubai’s most promising areas-off-plan, secondary, residential, and investment we stay with you from the first viewing to the final signature. Our team is built around people who listen first, speak clearly, and move at your pace.

Because in a market this fast, what you need isn’t just a property expert. You need someone in your corner.

Conclusion & Takeaways

A second mortgage can be a smart way to move forward-but only if you know where you stand. There’s no law stopping you from having more than one mortgage in Dubai. The real limits come from the numbers: how much equity you have, how much you earn, and how much weight you’re ready to carry.

The good news? You don’t have to guess. The rules are clear. The process is steady. And with the right guidance, it’s completely doable.

So if you're thinking about growing your property portfolio, upgrading your lifestyle, or just making use of what you’ve already built-start by asking better questions, not just bigger ones.

Because the best second mortgage isn’t the one that gets approved. It’s the one you can live with.

Frequently Asked Questions (FAQ)

• Can I have two mortgages on the same property in Dubai?

Yes, but you’ll need a No Objection Certificate (NOC) from your current lender, and the second mortgage must be approved based on available equity.

• Is there a limit to how many mortgages I can have in Dubai?

No legal limit-but banks will only approve what your income, debt load, and equity can support.

• What’s the typical loan-to-value (LTV) for a second mortgage?

Most lenders cap it at 60% for a second property. Off-plan? Usually no more than 50%.

• What’s the minimum down payment for a second mortgage in the UAE?

Often 40% or more, depending on the lender and your resident status.

• Can non-residents apply for a second mortgage in Dubai?

Yes, some banks offer second mortgages to non-residents, though approval is stricter, and options may be fewer.

• Will a second mortgage affect my credit score?

Yes. Like any loan, it adds to your credit profile and increases your monthly obligations. Paying on time is crucial.

You’re scrolling through listings. Maybe you’ve even booked a viewing. And then, somewhere between the asking price and the floor plan, the question hits: Wait… who pays the agent commission in Dubai?

It’s a fair question - and not a small one. Because beyond the excitement of finding the right place, there are numbers that don’t always show up upfront. That extra 2% here, or 5% there - it matters. Especially if no one told you it was coming.

In this guide, we’ll take a closer look at who pays the agent commission, how the process works across different kinds of transactions, and what RERA rules for commission say, not just what people assume. Whether you're buying, renting, or selling, understanding how Dubai real estate agents charge (and who’s expected to pay them) can save you time, confusion, and unexpected costs.

Because knowing what to expect doesn’t just help you budget - it gives you the confidence to move forward on your terms.

What Is Agent Commission in Dubai?

It’s the kind of thing that usually comes up after the fact.

You’re talking to an agent. You’ve seen a few places. Maybe one of them feels right. And then someone mentions the commission, as if you were supposed to know already.

In Dubai, the numbers aren’t a secret. If you’re buying, the standard is 2% of the sale price. If you’re renting, it’s usually 5% of the annual rent. That part’s fairly settled. But what’s less clear, at least at first, is who pays agent commission in Dubai, and why it isn’t always the same answer.

Sometimes it’s the buyer. Sometimes it’s the tenant. Sometimes it’s the seller or the landlord, and in off-plan deals, it’s almost always the developer. But unless that conversation happens early, it can lead to awkward moments later.

Dubai real estate agents work fast. They move between listings, clients, handovers, and signatures. It’s easy for things to get assumed, especially when everyone’s in a rush. But commission is one of those things worth slowing down for. Not just to ask how much - but to ask who, when, and why.

The rules? RERA has them in place. Clear enough, if you know where to look. But the real clarity comes from the people you’re dealing with - and whether they’re willing to have the conversation before the numbers show up on paper.



Discover the best Freehold Areas in Dubai where you can own property with full ownership rights and high investment potential.

Dubai Real Estate Agents: Who Pays What?

It depends on who you are and what kind of deal you’re making.

If you’re buying a home on the secondary market - meaning not brand new, not from a developer - the answer is simple: you pay the agent commission. It’s usually 2% of the purchase price, plus VAT. That’s the norm. The seller doesn’t usually cover it, unless you’ve agreed on something different upfront.

If you’re renting, it works the same way. You, the tenant, pay 5% of the annual rent. That’s what most Dubai real estate agents will expect - and it’s often due before you even get the keys.

Sellers? They only pay a commission if they’ve signed an exclusive agreement with the agent. If not, the buyer’s side covers it.

And off-plan? That’s the one exception where buyers get a break. In those cases, it’s the developer who pays. Agents still earn a commission - sometimes more than usual - but it doesn’t come out of your pocket.

So when people ask, Who pays the agent commission in Dubai?, the real answer is: it depends on what you’re doing. But most of the time, if you’re the one getting the keys, you’re also the one settling the fee.

Explore which is the best investment for you—Off-Plan or Ready Property in Dubai—with Mada Properties’ expert guidance.

A Look at RERA Rules for Commission

Dubai doesn’t just let the market run wild. There’s a framework, and at the heart of it is RERA, the Real Estate Regulatory Agency.

RERA sets the tone for how agents operate. It doesn’t fix commission rates by law, but it does set expectations: 2% is standard on sales, 5% on rentals, and anything beyond that needs to be agreed on in writing. No surprises. No backroom deals.

More importantly, RERA rules for commission say one thing loud and clear: whatever is agreed, it has to be transparent. That means if there’s a fee involved, it should be clear who’s paying it, how much it is, and when it’s due. Verbal agreements don’t count. Proper documentation does.

Some buyers assume the seller will cover it. Some tenants expect the landlord to pitch in. But unless it’s written down - and signed by both sides - that’s not how it works. And that’s why so many people still find themselves asking, Who pays agent commission in Dubai? - even after the deal is nearly done.

The answer, under RERA, is simple: whoever agrees to pay it, on paper, is the one responsible. That’s it. So, the safest move? Ask early. Confirm in writing. And don’t let that part of the conversation drift to the end.

How These Rules Apply in Real Transactions

It’s one thing to read the rules - it’s another to see how they play out.

In most resale deals, the buyer pays the commission. You find a place, agree on a price, and pay your agent 2% once the paperwork starts moving. That’s the rhythm most Dubai real estate agents are used to. No confusion, no need to ask twice - unless someone’s trying to do things differently.

With rentals, it’s similar. The tenant pays 5% of the annual rent, usually up front, and it’s handled before the handover. The landlord doesn’t cover it - not unless you’ve agreed on something unusual, which rarely happens in practice.

Where it shifts is in off-plan. If you're buying directly from a developer, especially during a launch, you probably won’t pay any commission at all. The agent still gets paid, sometimes even more than 2%, but the cost comes from the developer’s side, not yours.

And now and then, you’ll see a seller offer to cover the commission just to close the deal faster. It’s rare, but it happens. That’s why people keep asking: who pays agent commission in Dubai - not because the answer’s unclear, but because there are just enough exceptions to keep everyone guessing.

So the real answer? Look at the deal in front of you. Then look at the agreement. That’s where the truth lives.

Why Understanding Commission Matters

Most people don’t ask about the commission until it’s too late. Not because they’re careless - just because it’s one of those details that feels small until it suddenly isn’t.

If you’re buying, that 2% can catch you off guard. Maybe you were focused on the price, the payment plan, and the transfer fee. Then the agent reminds you, and you realise you’re a bit short. Not a disaster, but enough to make things tight. It’s the kind of moment that could’ve been avoided with one honest conversation early on.

If you’re renting, it’s the same story. That 5% shows up right before you get the keys. You've already paid the deposit, maybe a few rent cheques. Now there’s another cheque to write - and no one mentioned it before.

For sellers or landlords, it’s less about the money and more about the understanding. If your agent’s putting in time - arranging viewings, taking calls, managing paperwork - they’ll want to know how they’re getting paid. And if you’re expecting the buyer or tenant to handle it, that has to be clear from the start.

That’s why the question - who pays agent commission in Dubai - keeps coming up. Not because the rules aren’t there. But because people assume. They skip the talk. And then they’re surprised when the numbers hit the table.

Clarity helps. And a good agent won’t wait for you to ask - they’ll bring it up first.

About Mada Properties

We’ve been in enough conversations to know that most people don’t just want a house - they want someone who’ll tell them the truth.

At Mada properties, that’s where we start. Whether you’re buying, selling, or just trying to understand what it all means, we don’t rush the conversation. We ask the questions that usually get skipped. We bring up the details others wait to mention. And we’ll always tell you what we see - even if it costs us the deal.

That includes things like commission. We’ll explain exactly how it works, who’s expected to pay it, and why. If it’s negotiable, we’ll tell you now. If it’s not, we’ll make sure you’re ready for it. No last-minute surprises. No awkward calls at the finish line.

We don’t think real estate in Dubai has to feel like a hustle. It can feel like someone’s actually on your side. And that’s the space we try to hold - quietly, consistently, deal after deal.

Conclusion

Commission isn’t the most exciting part of buying or renting a home in Dubai, but it’s one of the things worth clarifying early.

The rules are there. The market has its habits. But the real answer to who pays agent commission in Dubai depends on the deal you’re making, and the people you’re making it with.

Ask early. Put it in writing. And work with someone who tells you the truth before you have to ask for it.

That’s usually all it takes.

Frequently Asked Questions (FAQ)

Who pays the agent commission in Dubai?

Most of the time, the buyer or tenant pays. In off-plan sales, it’s usually the developer.

Can the commission be split between both parties?

It can - but only if both sides agree in writing. Otherwise, it follows the usual pattern.

What are the standard commission rates in Dubai?

2% on sales, 5% on rentals - both plus VAT. Those are the market norms.

What do the RERA rules for commission say?

RERA doesn’t fix the rates, but it requires full transparency. The fee, the payer, and the terms should all be documented clearly.

Do Dubai real estate agents charge the same for every deal?

Not always. Some fees are negotiable - others aren’t. It depends on the property and the agent.

When is the commission usually paid?

Right after signing - before transfer or handover. It’s usually one of the last steps.

If you’ve been looking at the Dubai real estate market for more than five minutes, you’ve probably come across the phrase: Dubai freehold property.

It shows up on brochures, websites, and phone calls - usually as a selling point. But what does it mean?

Can you buy freehold property in Dubai as a foreigner?

Is it a lease? A lifetime right? Or full legal ownership?

The answer matters - especially if you're putting down serious money, planning for the long term, or hoping to build something more permanent in the UAE.

In this guide, we’ll unpack exactly what freehold property in the UAE is, how it works in practice, and why it’s become one of the strongest pillars of Dubai’s real estate success.

Whether you're buying to live, invest, or simply understand your rights, you're in the right place.

What Is Freehold Property?

Let’s strip it down.

Freehold property in the UAE means full ownership. Not just of the walls or the apartment, but of the land it sits on, the title deed, and the legal rights that come with it. It’s yours. No expiry, no renewal, no rent paid to a master developer.

That’s what separates it from leasehold.

Leasehold is long-term use - 30, 50, even 99 years - but at the end, the ownership reverts. With Dubai freehold property, there is no end date. You can sell it, lease it, pass it on, or live in it forever.

The concept became law in 2002, when Dubai opened certain zones to foreign investors under true freehold ownership. It was a bold move - and it worked.

Today, Dubai property freehold ownership is what draws in buyers from every corner of the world, looking for something solid in a city that’s still building upward.

Dubai’s Freehold Zones | Where Can You Buy?

One of the reasons Dubai freehold property has become so attractive is the range of areas available to buyers, especially non-residents.

Unlike some cities where foreign ownership is restricted or symbolic, freehold property in the UAE is real, enforceable, and geographically broad.

Dubai has designated multiple zones where freehold ownership is allowed for international buyers. These include:

• Downtown Dubai – For those seeking the city’s heartbeat.
• Dubai Marina – Waterfront living with skyline views.
• Business Bay – A hybrid of work and high-rise luxury.
• Jumeirah Village Circle (JVC) – One of Dubai’s fastest-growing residential hubs.
• Palm Jumeirah, Dubai Hills, Arabian Ranches, and more.

Each area offers something different - from family villas to high-rise apartments, from quiet communities to lifestyle destinations.

If you’re looking into emerging residential zones, JVC stands out for its value and momentum. Projects like Binghatti Phantom represent exactly the kind of freehold opportunities that combine affordability, design, and long-term potential.

And that’s the real power of Dubai property freehold ownership - it’s not just where you can live, it’s where you can belong.

Dubai Property Freehold Ownership | What You Own?

When you buy a Dubai freehold property, you're not just getting an apartment or villa - you're getting the title deed in your name, registered with the Dubai Land Department. That deed isn’t symbolic. It’s legal, transferable, and permanent.

Dubai property freehold ownership means you own the unit, the land it sits on (if applicable), and the full right to sell, lease, gift, or pass on the property as inheritance, without local sponsorship or time limits.

It’s a concept rooted in transparency. You can register it under your name as an individual or under a company if structured properly.

And unlike some leasehold structures in other cities, there’s no annual ground rent or expiry clock ticking in the background.

You own it.

Fully.

And in a place like Dubai - where real estate is more than a roof - that kind of ownership matters.

Who Can Buy Freehold Property in Dubai?

So - can you buy freehold property in Dubai if you’re not a resident?

Yes. That’s exactly what Dubai intended when it opened up its market to global buyers.

Anyone - whether a UAE resident, foreign investor, or even someone living on the other side of the world - can legally purchase Dubai freehold property in designated zones. There’s no citizenship requirement. No need to hold a visa.

You don’t even need to be in the country when the deal is signed - most transactions can be handled remotely through power of attorney.

Individuals can buy in their own name, and companies - whether local or foreign - can also hold property, depending on the structure and approval. Many investors choose to buy under an offshore or UAE-based company for legal or tax purposes.

That openness is part of what makes freehold property in the UAE so unique. It’s not just about the product - it’s about access. Real, direct, and protected by law.

Process | How to Buy Freehold Property in Dubai?

So - how do you actually go from browsing to holding the title?

Buying a Dubai freehold property isn’t some complicated maze. But it’s not something you want to figure out halfway through, either.

Here’s how it usually unfolds.

You find a place that makes sense - for your budget, your reason, your rhythm.

You agree on the price.

You sign a simple agreement - usually called an MOU - and put down a deposit.

Then comes the paperwork. Not piles of it. Just enough to prove who you are and that the funds are clean.

Your broker handles most of it. A good one will walk you through without rushing or skipping.

After that, everything moves through the Dubai Land Department.

You pay the government fee. They issue the title deed. And just like that - it’s yours.

If you’ve been asking whether you can buy freehold property in Dubai without being here, without speaking Arabic, without second-guessing every step… the answer is yes.

You just need someone who knows the system and respects your pace.

Benefits of Freehold Ownership

There’s a kind of peace that comes with knowing what you own is yours.

No expiry dates. No renewals. No fine print waiting to surprise you years later.

That’s the quiet power of Dubai freehold property - ownership that feels solid, simple, and not tied to anyone else’s timeline but your own.

For many people, that means flexibility. You can live in the home, rent it out, sell it, or hold it long-term, and you don’t need permission to do any of that.

For others, it’s about security. Owning in a city like Dubai, where the rules are clear and the growth is visible, doesn’t just feel like a smart investment - it feels safe.

Projects like Diamondz by Danube reflect this shift, designed for people who don’t just want a place to stay, but a stake in the city itself.

And that’s what freehold property in the UAE offers.

Not hype.

Just quiet confidence - backed by law, and built to last.

Risks and Considerations

Let’s be honest - Dubai freehold property isn’t a magic ticket.

It’s ownership, yes. But ownership comes with decisions.

Some freehold zones are well-developed, easy to rent, and easy to resell. Others… not quite there yet. You might need time. Or patience. Or both.

Markets shift.

Dubai’s been strong, fast, and resilient - but no market moves in a straight line. If you’re thinking short-term gains, you’ll need to be sharper with timing.

Then there’s the developer.

Buying off-plan? Ask hard questions. Don’t just look at brochures - look at what they’ve delivered before.

And finally, owning means managing. Service fees, upkeep, maybe tenants. It’s not complicated - but it’s not passive either.

So no, there’s nothing risky about freehold property in the UAE itself.

But there is a risk in not knowing what you’re getting into. And that’s why smart buyers take their time - and ask better questions.

About Mada Properties

Mada Properties isn’t just another real estate name in Dubai - it’s a team that listens first.

We focus on clarity, not pressure.

We help you compare, not just choose.

And we stay with you, from your first question to your final signature.

Whether you’re looking for a place to live, a property to invest in, or simply a clearer way to understand the Dubai market, we’re here for that.

Because good property decisions don’t start with listings.

They start with people who care.

Frequently Asked Questions (FAQ)

1. Can I buy freehold property in Dubai as a foreigner?

Yes. Foreigners can buy freehold property in designated areas without needing residency or a sponsor.

2. What does freehold mean in Dubai real estate?

It means full ownership - the unit, the land (if applicable), and the right to sell, rent, or inherit it.

3. Is freehold property better than leasehold in Dubai?

If you want long-term control with no expiry, yes - freehold is more flexible and secure.

4. Are there any risks to buying freehold in Dubai?

Only if you don’t do your homework. Choose the right location, developer, and advisor - and you’ll be fine.