DBR (Debt Burden Ratio)
The maximum percentage of your monthly income that can go toward total debt repayments, capped at 50% by the UAE Central Bank.
What is DBR (Debt Burden Ratio)?
Debt Burden Ratio (DBR) measures the percentage of your gross monthly income that goes toward all debt repayments — including the proposed mortgage, car loans, credit card minimum payments, and personal loans. The UAE Central Bank mandates that DBR cannot exceed 50% of gross income for any borrower. This means if you earn AED 30,000/month, your total monthly debt payments (including the new mortgage) cannot exceed AED 15,000.
DBR (Debt Burden Ratio) in the UAE
The 50% DBR cap was introduced by the UAE Central Bank to prevent over-leveraging and protect borrowers. Some banks apply an even stricter internal cap of 40-45%. Importantly, DBR considers ALL debts, not just the mortgage — existing car loans, credit cards (typically calculated as 5% of credit limit), and personal loans all count. This makes it crucial to reduce existing debt before applying for a mortgage.
Worked Example
Monthly gross salary: AED 30,000. Existing car loan: AED 2,500/month. Credit card (AED 50,000 limit): AED 2,500/month (5% of limit). Maximum total debt at 50% DBR: AED 15,000. Available for mortgage: AED 15,000 - AED 2,500 - AED 2,500 = AED 10,000/month. This supports approximately AED 1.5M mortgage over 25 years at 4.5%.
Does DBR include credit card debt?
Yes. Banks typically calculate credit card debt as 5% of your total credit limit, regardless of your actual balance. Reducing your credit limit before applying can help.
Can I exceed the 50% DBR limit?
No — the 50% cap is a regulatory requirement. However, some banks calculate DBR differently (gross vs. net income, treatment of allowances), so Mortigo finds the bank where your DBR calculation is most favorable.