Buy-to-Let Mortgage

A buy-to-let mortgage is financing specifically designed for investment properties intended for rental, featuring different underwriting criteria, higher interest rates, and loan approval based on rental income potential rather than borrower salary alone.

Underwriting DifferencesStandard vs Buy-to-Let
Income assessmentRental yield vs salary
LTV maximum75% vs 80-85%
Interest rate0.5-1% higher premium
DSCR requirement1.25x minimum typical
Eligibility CriteriaRequirement
Minimum incomeAED 15,000-25,000 monthly
Property typeCompleted units preferred
Rental evidenceValuation includes yield estimate
First-time landlordsSome banks restrict


Financial AnalysisCalculation
Rental incomeAED 120,000 annually
Required DSCR1.25x
Maximum annual debtAED 96,000 (120,000 / 1.25)
Maximum loan at 5%AED 1,920,000

Related Terms

Loan-to-Value (LTV)DSCR LoanDSCR Loan Investment PropertyLease Rental-Based Lending Debt Service Coverage Ratio

RERA licensed advisors

Banner Image

Free expert advice

Get property recommendations matched to your goals. No pressure. No commitment.