If half your pay arrives as sales commission, an annual bonus or overtime, you already know the frustrating part: your real earnings look strong on your bank statement, but the number a lender writes on the credit file is often much smaller. Getting a mortgage with commission based salary UAE banks will actually approve is less about how much you earn and more about how much of it a bank is willing to count.
This guide is written from a mortgage-broker perspective. It explains exactly how UAE banks treat commission, bonus, overtime and allowances, why the “guaranteed basic salary” matters more than your headline package, how the two-year averaging and discount works, and what you can do to raise your assessed income before you apply.
Published: 30 September 2026
Short version: UAE banks typically average variable pay over the last two years and then discount it, commonly by 25-50%, because it is not guaranteed. Fixed allowances on your salary certificate usually count in full. Many banks also screen your minimum-salary eligibility on guaranteed pay only. Policy differs bank by bank, so the same applicant can get very different loan amounts from two lenders.
How do UAE banks count commission, bonus and overtime for a mortgage?
Banks split your income into “guaranteed” and “variable” and treat the two very differently. Guaranteed income is what your employment contract commits the employer to pay every month. Variable income is anything that depends on performance or discretion: sales commission, annual or quarterly bonus, overtime, incentives.
According to Lenddoo’s UAE mortgage requirements guide, variable pay such as annual bonus, sales commission and overtime is typically averaged across the last two years and then discounted, commonly by 25-50%. Housing and transport allowances that appear on the salary certificate usually count in full toward qualifying income. Other broker sources describe the same pattern with slightly different windows: some banks use a 12-24 month average of verified commission, and a few work from a shorter 6-12 month window.
The reason is simple risk management. A mortgage runs for up to 25 years, but a commission plan can change next quarter. The bank prices in the chance that your variable income falls.
| Income component | Typical treatment by UAE banks | What it depends on |
|---|---|---|
| Basic salary | Counted in full | Employment contract, salary certificate |
| Housing / transport allowances | Usually counted in full when itemised on the certificate | Whether they are itemised (or in the contract) |
| Sales commission | Averaged over 12-24 months, then discounted (commonly 25-50%) | Consistency of payments, bank policy |
| Annual bonus | Averaged over 2 years, then discounted | Two years of proof, employer letter |
| Overtime | Averaged and discounted; some banks exclude | Regular payslip history |
| Rental / other income | Separate discount rules, often 50-70% of gross | Documents, bank policy |
The ranges above come from published broker guides (Lenddoo, City Mortgage, Engel & Voelkers) and vary by bank. None of them is a Central Bank rule, so treat them as market practice and confirm with the specific lender.
What is the “guaranteed basic salary” screen, and why does it matter?
Before a bank even calculates how much you can borrow, many apply a minimum-salary test, and that test is often run on guaranteed pay only. City Mortgage notes that most banks will only count guaranteed basic salary toward the minimum threshold, while variable pay, bonuses and overseas income are discounted or excluded at the eligibility screening stage.
Most UAE banks set a minimum monthly salary of around AED 15,000 for salaried residents, with a few lending from AED 10,000 on smaller loans or for applicants employed by the bank’s approved companies. Engel & Voelkers points out that there is no single universal figure and that lenders also look at debts, credit history, employment stability and the property.
This is where commission-heavy earners get caught. Someone on AED 8,000 basic plus AED 14,000 average commission earns AED 22,000 a month, but if a bank screens on fixed pay, the file can fail at the very first gate. Someone on AED 12,000 basic plus AED 3,000 fixed allowances plus AED 10,000 commission passes the same gate comfortably.
Engel & Voelkers also notes that lenders often cap loan amounts based on basic salary, and that basic salary is typically 50-70% of total income for a normal package. If yours is much lower than that, expect the bank to ask questions.
If you have not read it yet, our guide to how salary transfer affects your UAE mortgage covers the minimum-salary thresholds bank by bank.
How does the two-year averaging and haircut actually work?
The bank adds up your variable pay across the review period, divides to get a monthly average, then applies its discount, and only that discounted figure is added to your fixed pay.
Lenddoo gives a clear illustration: a candidate on AED 18,000 basic plus an AED 6,000 average bonus is often assessed on roughly AED 18,000 to AED 21,000, not AED 24,000, depending on the bank’s policy. That is a 0-50% credit on the variable slice.
Three practical points follow:
- Consistency beats size. A steady AED 6,000 every month for 24 months is worth more to an underwriter than two spikes of AED 40,000 in a single year. Lumpy income is averaged down and sometimes questioned.
- The window can hurt or help. If your commission grew sharply this year, a two-year average pulls the figure down. If it fell, a shorter window pulls it down harder. Ask which window the bank uses before you choose it.
- Some banks give nothing. Engel & Voelkers notes that several banks give credit for a portion of verified commission while others do not. That is the single biggest reason to compare lenders instead of applying to your salary bank by default.
What is the DBR limit, and how does variable income feed into it?
The Central Bank of the UAE caps your total monthly debt repayments at 50% of gross monthly income. This is the Debt Burden Ratio (DBR). City Mortgage, Lenddoo and Engel & Voelkers all confirm the 50% cap. Our full walkthrough of the maths is in How Much Can You Borrow? UAE Mortgage Eligibility.
The important point for commission earners: the “gross monthly income” in that formula is the bank’s assessed income, meaning fixed pay plus the discounted variable slice, not the number on your last bonus statement. A lower assessed income lowers the 50% ceiling, and that lowers the maximum instalment.
A worked example: the same commission earner at three different banks
To keep this honest, the numbers below are anchored to real current benchmarks. The CBUAE raised its Base Rate by 25bps to 3.90% effective 17 September 2026 (covered in our rate hike explainer). The 3-month EIBOR fixing on 3 September 2026 was 4.00% (source: the 3 September CBUAE fixing as reproduced by mortgease.ae), and it has been drifting higher since the hike, so check the current CBUAE fixing before you rely on it. Broker sources put typical variable margins at 1.5-2.5% over EIBOR. For the illustration I use a 2.0% margin, which gives 6.00%, and a 25-year term. On those assumptions, the instalment is about AED 6,443 per AED 1 million borrowed.
The applicant: a salaried sales executive in Dubai.
- Basic salary: AED 12,000
- Fixed housing and transport allowances (itemised on the certificate): AED 3,000
- Average commission over the last 24 months: AED 10,000 per month
- Existing car loan instalment: AED 2,000 per month
- Headline monthly earnings: AED 25,000
| Scenario | How the bank counts commission | Assessed monthly income | 50% DBR ceiling | Room left for the mortgage (after AED 2,000 car loan) | Approx. maximum loan at 6.00% / 25 yrs |
|---|---|---|---|---|---|
| Bank A: 50% credit | AED 5,000 counted | AED 20,000 | AED 10,000 | AED 8,000 | about AED 1.24 million |
| Bank B: 75% credit | AED 7,500 counted | AED 22,500 | AED 11,250 | AED 9,250 | about AED 1.44 million |
| Bank C (hypothetical): full credit | AED 10,000 counted | AED 25,000 | AED 12,500 | AED 10,500 | about AED 1.63 million |
| Bank D: commission excluded | AED 0 counted | AED 15,000 | AED 7,500 | AED 5,500 | about AED 0.85 million |
Same person, same payslips, same property. The maximum loan swings from about AED 0.85 million to about AED 1.63 million purely because of policy. Bank C is labelled hypothetical because full credit for variable pay is uncommon; the published market range is a 25-50% discount, so Banks A and B are the realistic band.
This is an illustration of the arithmetic, not a quote. Real banks also stress-test the rate, apply their own DBR treatment for existing debts (a credit card limit counts even when the card is unused), and cap the loan by LTV. The down payment and LTV rules apply on top of the income maths.
Which documents prove commission income to a bank?
Expect to over-document. Commission is only counted if it is provable, repeated and traceable in your bank account. Standard salaried paperwork applies (passport, visa, Emirates ID, salary certificate, payslips, bank statements, AECB report), and commission earners are typically asked for more.
- Salary certificate / employment letter dated within 30 days, ideally itemising basic, allowances and average commission (it is worth asking HR to list them separately).
- Employment contract, especially if allowances are not itemised on the certificate.
- Payslips: the standard is 3-6 months, but commission earners should be ready with 12-24 months so the bank can compute the average.
- Bank statements: usually 6 months from all active accounts (Lenddoo). Commission should be visible as a credit, not received in cash.
- Employer commission statement or letter confirming the plan, payment frequency and that it is ongoing.
- AECB credit report dated within 30 days. See how to improve your credit score before applying.
For the complete list by borrower type see our UAE mortgage documents checklist.
One trap to watch: if your commission is paid outside payroll, in cash, or through a contractor arrangement, a bank may reclassify you as self-employed, which triggers a different test, typically a higher minimum income (around AED 25,000 per City Mortgage) and business documents. Our guide to qualifying for a mortgage while self-employed covers that route.
Are UAE banks getting stricter on variable income in 2026?
Yes, on the evidence of the current market, banks are looking more closely at employment type and income stability. We covered this trend in UAE banks tightening mortgage lending in 2026, including reduced financing for applicants in cyclical sectors and closer verification of how income is described. For commission earners, that means presenting a clean, consistent file matters more than it did a year ago.
How can you raise your assessed income before applying?
You cannot change a bank’s policy, but you can change which bank sees your file and how the file is presented. These are the levers that actually work.
- Pick the bank whose variable-income policy suits your pay structure. A bank that credits 75% of a 12-month average is a very different outcome from one that credits 50% of a 24-month average. This is the main reason a broker can move the number; see mortgage broker vs bank.
- Ask HR to itemise the certificate. If a portion of what is called “commission” is actually a fixed allowance under the contract, get it listed as an allowance so it is counted in full.
- Time the application after a strong, documented period. If your average is climbing, apply once the average has caught up rather than before.
- Add a co-borrower with fixed income. A spouse or family member’s guaranteed salary lifts the combined assessed income; see joint mortgages in the UAE.
- Clear or close existing debt. Every dirham of monthly obligation removed adds roughly AED 155 of borrowing power per AED 1,000 cleared at the assumptions above (1,000 divided by 6.443).
- Borrow less, deposit more. A lower loan-to-value can turn a marginal file into an approved one, and some lenders are more flexible on higher deposits.
- Keep your salary transfer and payments clean. Regular WPS credits and no late payments support the bank’s confidence in the rest of the file.
What are the biggest mistakes commission earners make?
- Applying to one bank only (usually the salary bank) and taking its first answer.
- Quoting total package to a sales agent or online calculator and assuming that is the borrowing power. Most calculators do not apply the haircut.
- Having commission paid in cash or off payroll, which cannot be verified.
- Multiple applications in a short time. Each formal application creates an AECB enquiry.
- Changing jobs mid-application. A new employer usually resets the employment-length and variable-income history.
- Ignoring the rate environment. With the CBUAE Base Rate at 3.90% and EIBOR moving higher, your instalment on a floating loan rises and so does the income you need. See EIBOR explained.
Frequently asked questions
Can I get a mortgage in the UAE if most of my salary is commission?
Yes, but it is harder and the loan will usually be smaller. Banks count guaranteed pay in full and discount commission after averaging it. Some lenders may screen your minimum-salary eligibility on fixed pay only, so a very low basic salary can fail before the commission is even looked at.
How much of my commission will a UAE bank count?
Commonly 50-75% of the averaged figure, since variable pay is typically discounted by 25-50% according to published broker guides. Some banks give no credit at all. Ask the specific lender for its policy.
How many months or years of commission history do banks want?
Typically a two-year average, though some banks work from 12-24 months and some from 6-12. The longer and steadier your history, the more credit you tend to get.
Do housing and transport allowances count in full?
Usually yes, when they appear on the salary certificate (or contract) as fixed allowances. That is why itemisation matters, and why it is worth asking HR to separate them from commission.
What is the maximum DBR for a UAE mortgage?
The Central Bank of the UAE caps total debt repayments at 50% of gross monthly income. For a commission earner, the income in that formula is the assessed income after discounting variable pay.
Is there a minimum salary for a UAE mortgage?
Most banks set around AED 15,000 a month for salaried residents, with some lending from AED 10,000 in specific cases. There is no single universal figure, and the test may be run on guaranteed pay only.
Will a bank treat me as self-employed if I am paid commission only?
Possibly. If commission is paid outside payroll or under a contractor arrangement, a lender may treat you as self-employed, which usually means a higher minimum income and business documents. Payroll-paid commission from a UAE employer is normally assessed as salaried income with a variable component.
Does overtime count towards mortgage eligibility?
It is treated like other variable pay: averaged and discounted, and excluded by some banks. It needs to be regular and visible in payslips.
Can a co-borrower help if my income is mostly variable?
Yes. Adding a co-borrower with a fixed salary raises the combined assessed income and the DBR ceiling. Both borrowers are jointly liable.
Should I use a mortgage broker if I earn commission?
It often helps, because bank policies on variable income differ widely, and a broker can match your pay structure to the right lender before a formal application leaves an AECB enquiry on your file.
Talk to Al Ghaf about your commission-based mortgage
Al Ghaf Mortgage offers two services: Mortgage Consulting and Banking Consultation. If you earn commission, a bonus or overtime, we can review your payslips and pay structure and explain how lenders are likely to assess your income before you apply, so the numbers you plan around are realistic. Use our Contact Us page or message us directly on WhatsApp.
Message Al Ghaf on WhatsApp: +971 50 127 6925
This article is general information, not financial advice. Bank policies on variable income, rates and fees change; confirm current terms with the lender or a mortgage consultant before you apply.
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