Your Debt Burden Ratio (DBR) is one of the most important numbers in your mortgage application. The UAE Central Bank caps it, and it directly determines how much you can borrow. Here's how it works and how to improve it.
What is DBR?
DBR is the share of your gross monthly income consumed by all debt repayments — including your new mortgage, personal loans, car loans, and credit card minimums. For salaried borrowers, total obligations are generally capped at 50% of gross monthly income.
Why it limits your borrowing
Because the mortgage payment must fit within the remaining DBR headroom, existing debts directly reduce the loan you can service. A large car loan or several active credit cards can cut your maximum mortgage significantly, even with strong income.
How to improve your DBR
- Settle or reduce personal loans and car finance before applying.
- Lower credit card limits or clear balances to reduce assessed minimums.
- Consider a longer mortgage tenure to reduce the monthly payment (within limits).
- Add a co-applicant's income with a joint mortgage to widen headroom.