New tool

Underwater risk calculator

For leveraged Dubai property buyers. Given your purchase price, LTV, and the community's projected appreciation, when does the loan balance exceed property value? Most mortgage calculators assume +4% appreciation forever — this one uses the community's actual trailing growth as the default and lets you stress-test against your own assumption.

Property

Community

Purchase price (AED)

AED 2.40M

Mortgage

LTV at purchase (75%)

20%85%

Mortgage rate (%)

Term (years)

Assumed annual appreciation (16.9%)

Default = 16.9% (YoY change in this community)

SAFE — equity buffer never drops below 20%

Initial loan

AED 1.80M

Monthly payment

AED 11K

Min buffer (5yr)

26.1%

Underwater at

—

5-year trajectory

Month	Property value	Loan balance	Equity buffer	Status
M12	AED 2.81M	AED 1.76M	37.1%	above
M24	AED 3.28M	AED 1.73M	47.4%	above
M36	AED 3.83M	AED 1.69M	56.0%	above
M48	AED 4.48M	AED 1.64M	63.3%	above
M60	AED 5.24M	AED 1.60M	69.4%	above

Calculations use standard mortgage amortisation + compound annual appreciation. "Underwater" = remaining loan balance exceeds projected property value. The 5-year horizon is the stress window we use; longer holds typically reduce risk via principal paydown.