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.
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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 Does It Mean?
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.
UAE Context
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%.
Common Questions
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.
Related Terms
The percentage of a property's value that a bank will lend you as a mortgage.
A conditional commitment from a bank confirming how much they are willing to lend you, valid for 60-90 days.
Your fixed monthly mortgage payment that includes both principal repayment and interest (or profit in Islamic finance).
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