Published by:
Nour Naccache
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Planning to buy a property in Dubai? One of the first things you need to work out is how much you'll need for the down payment.
The amount depends on your residency status, whether you're buying your first home and the property's value.
For example, eligible expatriate residents can purchase their first home with a minimum down payment of 20%, while UAE nationals may qualify for a minimum of 15%.
However, the down payment is only part of the upfront cost. There are also Dubai Land Department (DLD) fees, bank charges and other expenses to account for.
What is the minimum down payment for property in Dubai?
The minimum down payment is determined by the loan-to-value (LTV) ratio.
This is the percentage of the property's value a bank can finance, with the remaining amount paid by the buyer.
For example, if you purchase a property worth AED 2 million and qualify for 80% financing:
Property price: AED 2,000,000
Mortgage amount: AED 1,600,000
Your down payment: AED 400,000
The UAE Central Bank sets maximum LTV limits. Banks can offer lower financing amounts depending on your eligibility, credit profile and property valuation.
How much down payment do different buyers need in Dubai?
The following limits apply to eligible buyers under the UAE Central Bank's mortgage regulations.
Buyer category | Property value | Maximum LTV | Minimum down payment |
UAE national, first home | AED 5M or less | 85% | 15% |
UAE national, first home | Above AED 5M | 75% | 25% |
Expat resident, first home | AED 5M or less | 80% | 20% |
Expat resident, first home | Above AED 5M | 70% | 30% |
UAE national, second/investment property | Any value | 65% | 35% |
Expat resident, second/investment property | Any value | 60% | 40% |
Off-plan property | Any value | 50% | 50% |
Non-resident | Depends on lender | Bank-specific | Bank-specific |
These are maximum regulatory LTV limits, not automatic loan entitlements.
For non-residents, available financing depends on the bank, applicant profile, property type and lending criteria.
Why does the property value affect your down payment?
For first-home buyers, the AED 5 million property value threshold can make a significant difference.
Consider an expatriate resident buying their first home:
Property price | Minimum down payment | Amount |
AED 4.9 million | 20% | AED 980,000 |
AED 5.1 million | 30% | AED 1,530,000 |
The required down payment increases significantly once the property value exceeds AED 5 million.
This is worth considering when comparing properties near that threshold, particularly if you have a limited budget for upfront costs.
What happens if the bank values your property below the purchase price?
Banks arrange an independent property valuation before finalising the mortgage amount.
If the valuation is lower than the agreed purchase price, the bank may calculate the loan using the lower figure.
For example:
Agreed property price: AED 3,000,000
Bank valuation: AED 2,850,000
Maximum LTV: 80%
Maximum mortgage based on valuation: AED 2,280,000
In this situation, you would need AED 720,000 towards the purchase price, compared with AED 600,000 if the property had been valued at the agreed price.
That's an additional AED 120,000 to arrange before completing the purchase.
Getting mortgage pre-approval early can help you understand your borrowing capacity, although final approval still depends on the property valuation and other checks.
You can learn more in our complete guide to mortgage pre-approval in Dubai.
How much cash do you need beyond the down payment?
Buying a property in Dubai involves additional expenses, including the 4% DLD transfer fee, mortgage registration, agency commission and bank charges.
Let's look at an illustrative example of an expatriate resident buying their first home for AED 3 million.
Property price: AED 3,000,000
Mortgage: AED 2,400,000
Down payment: AED 600,000
Expense | Illustrative amount |
Down payment (20%) | AED 600,000 |
DLD transfer fee (4%) | AED 120,000 |
Agency commission (2% + VAT) | AED 63,000 |
Bank arrangement fee (1% of loan + VAT) | AED 25,200 |
DLD mortgage registration (0.25% of loan) | AED 6,000 |
Sale registration trustee fee (including VAT) | AED 4,200 |
Property valuation (AED 3,000 + VAT) | AED 3,150 |
Developer NOC (illustrative) | AED 1,500 |
Other DLD administration and issuance charges (illustrative) | AED 870 |
Total estimated cash required | AED 823,920 |
This example assumes the separate mortgage registration trustee service fee is not charged because the mortgage is registered alongside the sale. Actual charges, VAT treatment, waivers and responsibility for individual fees depend on the transaction and lender.
The down payment accounts for AED 600,000, while the illustrated additional costs bring the total upfront requirement to approximately AED 824,000.
That is about 27.5% of the property price.
Certain fees may be treated differently by lenders within the applicable financing limits. Confirm the actual cash required with your mortgage advisor and conveyancer before committing to the purchase.
How does the down payment work for off-plan properties?
Off-plan property purchases have a different payment process.
Many developers offer construction-linked payment plans, allowing buyers to make instalments over time.
A typical developer payment plan might include:
An initial booking amount.
Instalments during construction.
A remaining payment at handover.
The exact payment structure depends on the project and developer.
A developer payment plan is different from a mortgage. If a bank finances an eligible off-plan property, the UAE Central Bank's maximum LTV is 50%.
Buyers should also account for the applicable DLD registration charges, including Oqood registration where relevant.
If you intend to arrange a mortgage for the handover payment, it's worth checking eligibility early. The bank will assess both your financial profile and the property before issuing its final approval.
Can you take a personal loan to fund your down payment?
The UAE Central Bank expects mortgage down payments to come from the buyer's own resources, rather than additional borrowing through personal loans or credit cards.
There are also practical reasons to avoid taking on extra debt immediately before applying for a mortgage.
First, the new loan increases your monthly financial commitments, which can reduce your mortgage eligibility.
Second, banks review your existing liabilities and source of funds when assessing your application.
Depending on the lender's policies, other documented sources, such as proceeds from selling an asset or a non-repayable family gift, may be considered.
It's best to confirm acceptable funding sources with the lender before making arrangements.
FAQs
What is the minimum down payment for property in Dubai?
For an eligible expatriate resident purchasing their first home worth AED 5 million or less, the minimum down payment is generally 20%. Eligible UAE nationals may qualify for a minimum of 15%.
Why is my down payment higher than 20%?
Your down payment may be higher if you're purchasing a second property, buying a property above AED 5 million, financing an off-plan property or applying as a non-resident. A lower property valuation can also increase the amount of cash required.
Can I finance the 4% DLD fee?
You should budget for the DLD fee separately when planning your purchase. Some lenders may accommodate eligible transaction costs within their approved financing arrangements, subject to LTV limits and bank policies.
How much down payment do I need for an AED 1 million property in Dubai?
For an eligible expatriate resident purchasing a first home, the minimum down payment is generally AED 200,000. Additional cash will be required for applicable transaction and mortgage-related costs.
Does the booking deposit count towards the down payment?
Generally, the booking or sale deposit forms part of the agreed purchase price and is accounted for at completion. Review the payment and refund terms in your sale agreement before making the deposit.
Plan your property purchase with PRYPCO Mortgage
Knowing the minimum down payment is a good starting point. Before buying, you should also understand your monthly repayments, applicable bank fees and total upfront costs.
Use the PRYPCO Mortgage calculator to estimate your payments, or speak to our team to explore mortgage options that suit your budget.
