Down Payment Requirements in Dubai: How Much Do You Really Need?

Table of Contents

1. UAE Central Bank LTV Rules
2. Expat Down Payment Requirements
3. UAE National Down Payment
4. Non-Resident Down Payment
5. Fees in Addition to Down Payment
6. Total Cash Required — Worked Examples
7. Off-Plan Property Rules
8. Second Property Rules
9. Saving for the Deposit
10. Common Misconceptions

UAE Central Bank LTV Rules

The UAE Central Bank (CBUAE) sets strict Loan-to-Value (LTV) limits for all residential mortgage lending in the country. These limits were first introduced in Circular No. 31/2013 and have been refined through subsequent CBUAE circulars. No UAE bank can legally lend above these maximum LTV ratios — they apply uniformly across all licensed banks and financial institutions.

LTV is the proportion of the property's value that the bank will finance. If LTV is 75%, the bank lends 75% and you provide the remaining 25% as a down payment from your own funds.

Buyer Type	Property Value	Max LTV	Minimum Down Payment
UAE National (first property)	Under AED 5 million	80%	20%
UAE National (first property)	AED 5 million and above	70%	30%
UAE National (second property)	Any value	65%	35%
Expat Resident (first property)	Under AED 5 million	75%	25%
Expat Resident (first property)	AED 5 million and above	65%	35%
Expat Resident (second property)	Any value	65%	35%
Non-Resident (Overseas Buyer)	Any value	65%	35%
All buyers — Off-Plan properties	Any value	50%	50%

Expat Down Payment Requirements

As a UAE resident expat buying your first property in Dubai (or elsewhere in the UAE), you need a minimum of 25% down payment on properties priced below AED 5 million. This is the single most important number for most expat buyers — the vast majority of Dubai transactions fall under the AED 5M threshold.

Example: Expat buying an AED 2M apartment in Dubai Marina

• Property price: AED 2,000,000
• Minimum down payment (25% of AED 2M): AED 500,000
• Maximum mortgage (75% of AED 2M): AED 1,500,000

Example: Expat buying an AED 5.5M villa in Emirates Hills

• Property price: AED 5,500,000
• Maximum LTV drops to 65% (property above AED 5M threshold)
• Minimum down payment (35% of AED 5.5M): AED 1,925,000
• Maximum mortgage (65% of AED 5.5M): AED 3,575,000

This threshold effect is worth planning around. Some buyers prefer to purchase just under the AED 5M mark to preserve the 75% LTV and save a significant amount on their required down payment.

UAE National Down Payment Requirements

UAE nationals (Emirati citizens) benefit from the most favourable LTV ratios available in the market. On first properties priced under AED 5 million, nationals only need a 20% down payment, meaning the bank can lend up to 80% of the property's value. This reflects the UAE government's policy of supporting national homeownership.

Example: UAE National buying a AED 1.5M villa in Arabian Ranches

• Property price: AED 1,500,000
• Minimum down payment (20% of AED 1.5M): AED 300,000
• Maximum mortgage (80% of AED 1.5M): AED 1,200,000

UAE nationals also typically access preferential rates at both conventional and Islamic banks, and some government schemes (such as those from MBRHE in Dubai and ADHA in Abu Dhabi) offer subsidised loans for eligible nationals at below-market rates.

Non-Resident (Overseas Buyer) Down Payment

Overseas buyers — those purchasing UAE property without a UAE resident visa — must provide a minimum 35% down payment on any property, regardless of value. The maximum mortgage is therefore 65% LTV. Non-residents also have access to fewer banks, as not all UAE lenders serve the overseas buyer market.

Popular destinations for non-resident buyers include Dubai Marina, Downtown Dubai, Palm Jumeirah, and Emaar Beachfront. These freehold areas are specifically designated for foreign ownership without requiring UAE residency.

Fees in Addition to Down Payment

A critical point that many first-time buyers miss: the down payment is only part of your total upfront cash requirement. Dubai property buyers must also pay several mandatory fees on top of the down payment. These fees are fixed by the DLD (Dubai Land Department) and by bank policy — they cannot be financed through the mortgage.

Fee	Rate / Amount	Notes
DLD transfer fee	4% of purchase price	Mandatory; paid at DLD transfer appointment
DLD admin fee	AED 580	Fixed DLD administration charge
Mortgage registration fee	0.25% of loan amount + AED 290	Registers the bank's charge against the title
Property valuation fee	AED 2,500–3,500	Paid to bank's approved valuer; non-refundable
Trustee fee	AED 4,200 (standard)	Paid at DLD transfer office; slightly higher for some transactions
Title deed issuance	AED 520	Physical title deed document fee
Bank processing / arrangement fee	0.5–1% of loan amount	Varies by bank; some waive for salary transfer customers
Real estate agent commission	2% of purchase price	Secondary market only; no buyer commission for off-plan

Total fees typically add 6–8% to the property price for a mortgage buyer in the secondary market.

Total Cash Required — Worked Examples

Example 1: Expat buying AED 2M apartment with 25% down payment

• Down payment (25%): AED 500,000
• DLD transfer fee (4%): AED 80,000
• DLD admin fee: AED 580
• Mortgage registration (0.25% of AED 1.5M + AED 290): AED 4,040
• Agent commission (2%): AED 40,000
• Valuation fee: AED 3,000
• Trustee fee: AED 4,200
• Title deed: AED 520
• Bank processing fee (0.5% of AED 1.5M): AED 7,500
• Total upfront cash: approximately AED 639,840

Example 2: UAE National buying AED 1.5M apartment with 20% down payment

• Down payment (20%): AED 300,000
• DLD transfer fee (4%): AED 60,000
• Mortgage registration (0.25% of AED 1.2M + AED 290): AED 3,290
• Agent commission (2%): AED 30,000
• Valuation + trustee + title deed + admin: AED 8,300
• Bank processing fee (0.5%): AED 6,000
• Total upfront cash: approximately AED 407,590

Use Mortigo's Down Payment Calculator and DLD Fees Calculator for instant, personalised breakdowns.

Off-Plan Property Rules

The rules for off-plan (under-construction) property purchases are fundamentally different from ready properties. Under CBUAE regulations, banks will only issue a mortgage on an off-plan property once the buyer has paid 50% of the total property value. Until that 50% threshold is reached, the buyer pays the developer directly through the developer's payment plan.

This means for a AED 2M off-plan apartment, you must pay AED 1,000,000 (50%) to the developer before you can draw down a mortgage for the remaining AED 1,000,000 — which represents 50% of the property value, exactly at the CBUAE's off-plan LTV limit.

Many UAE developers structure their payment plans to align with this requirement. A typical 50/50 plan charges 50% during construction (in milestone payments) and 50% at handover — which is when you apply for and draw down the mortgage.

Second Property Down Payment Rules

The UAE Central Bank applies significantly stricter LTV limits for second and subsequent property purchases. Both UAE nationals and expat residents face a maximum of 65% LTV (35% down payment) for any additional property, regardless of the property's value. This applies even if the second property is priced well below AED 5M.

Investment property buyers should therefore budget for a larger down payment. For a AED 2M investment apartment, an expat needs AED 700,000 in down payment (35%), compared to AED 500,000 for a first property.

Saving for the Deposit

For many UAE residents, accumulating AED 500,000–700,000 for a down payment is the primary barrier to homeownership. Several practical considerations:

• The down payment must come from your own savings: UAE banks verify the source of funds through 3–6 months of bank statements. A sudden large deposit from a loan will raise red flags and likely result in the application being declined
• Budget for the full cash requirement: Many buyers save enough for the down payment alone and are caught short by the fees. Plan for the total upfront cost, not just the deposit
• Consider starting smaller: A studio or 1-bedroom in JVC or Dubai South can be bought from AED 600,000–900,000, requiring a 25% deposit of AED 150,000–225,000 — a more achievable savings target
• Off-plan payment plans can help: Buying off-plan with a developer payment plan lets you spread the 50% down payment over the construction period (1–3 years) rather than finding it all at once

Common Misconceptions About UAE Down Payments

• "I can borrow the deposit from family." — Banks check the source of funds. A gift from family may be acceptable if you can evidence it clearly and it appears in your account statements. A loan from family that generates repayments will be counted in your DBR and reduce your mortgage eligibility.
• "First-time buyers get a lower deposit requirement." — There is no first-time buyer discount in the UAE. The minimum down payment for expat residents is 25% regardless of whether it's your first property purchase.
• "The DLD fee is included in the mortgage." — No. The DLD 4% transfer fee is entirely separate from the mortgage and must be paid from your own funds at the time of the DLD transfer appointment.
• "I can negotiate the DLD fee." — The 4% DLD fee is mandatory and set by law. However, in negotiations with the seller, you may be able to arrange for the seller to contribute to or cover the DLD fee as part of the overall deal.

Ready to calculate exactly how much you need? Use Mortigo's free Down Payment Calculator or speak to an advisor at +971 50 729 7196.