Co-Borrower

A co-borrower is a person who applies for a mortgage jointly with the primary borrower and shares equal legal responsibility for repaying the loan. Both borrowers' incomes and credit profiles are considered in the lending decision, potentially qualifying them for a larger loan amount than either could secure individually.

UAE banks accept co-borrowers for mortgage applications, though specific policies vary. Spouses are the most common co-borrowers. Both borrowers' salaries count toward the DBR (Debt Burden Ratio) calculation, allowing access to higher loan amounts. Both co-borrowers are typically required to be on the title deed.

Both co-borrowers are jointly and severally liable for the full mortgage amount

Combined income improves borrowing capacity under UAE Central Bank DBR rules

Some banks restrict co-borrowers to spouses or immediate family

Adding a co-borrower can increase your borrowing capacity notably by combining two income streams in the UAE Central Bank's Debt Burden Ratio calculation. However, both borrowers are fully liable for the entire debt. If the primary borrower cannot pay, the co-borrower is equally responsible for the full outstanding amount.

Co-borrower arrangements should be accompanied by a clear private agreement between the parties covering their respective responsibilities, ownership shares, and what happens if one party wants to exit. This is especially important for non-married co-borrowers where relationship context is less clearly defined in law.