Debt Ratio Calculator For UAE
Frequently Asked Questions (FAQs)
What is the Debt Burden Ratio (DBR) in the UAE?
DBR is a strict metric used by UAE banks to measure your ability to repay a loan. It compares your total monthly debt payments (like car loans, personal loans, and credit cards) against your total monthly income.
What is the maximum DBR limit allowed by the Central Bank?
For most expats and UAE nationals, the Central Bank of the UAE caps the DBR at 50%. This means you cannot use more than half of your monthly salary to pay off debts. If your DBR is higher than 50%, banks are legally restricted from giving you new financing. (Note: For pensioners, this limit is often 30%).
How do credit cards affect my DBR?
This is a common trap. Banks don’t just look at what you spent on your card; they look at your credit limit. Usually, 5% of your total credit card limit is counted towards your monthly DBR, even if the card balance is zero. Reducing your unused credit card limits is the fastest way to lower your DBR.
Does my housing rent count towards DBR?
Generally, no. Rent is considered a living expense, not a debt liability, so it is usually excluded from the standard DBR calculation. However, if you have taken a “Rent Loan” or used a credit card to pay rent in installments, that specific repayment will count.
How can I lower my DBR to get a mortgage?
You have two main options:
Close unused credit cards: As mentioned, that 5% calculation eats up your eligibility.
Consolidate your loans: If you have multiple small loans, combining them into one longer-term loan can reduce your monthly installment amount, which immediately lowers your DBR percentage.
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