Key Points in 15 Seconds
- UAE Nationals: Minimum 15-20% down payment (80-85% financing)
- Expat Residents: Minimum 20-25% down payment (75-80% financing)
- Non-Residents: Minimum 35-40% down payment (60-65% financing)
- Higher down payment = better rates and lower monthly payments
Understanding Down Payment in UAE
Down payment is the portion of the property price you pay upfront. The remainder is financed through your mortgage. UAE Central Bank sets maximum Loan-to-Value (LTV) ratios, which determine minimum down payments.
The down payment requirement is one of the most significant upfront costs when buying property in UAE. Planning ahead and understanding your requirements based on your residency status is crucial.
Down Payment Requirements by Residency
UAE Nationals
15-20%
First property
Maximum LTV: 80-85%
Second property: 35%+
Expat Residents
20-25%
First property
Maximum LTV: 75-80%
Second property: 40%+
Non-Residents
35-40%
All properties
Maximum LTV: 60-65%
Freehold areas only
Note: These are minimum requirements per UAE Central Bank regulations. Individual banks may require higher down payments based on property type, location, or borrower profile.
Down Payment Examples
| Property Value | UAE National (20%) | Expat (25%) | Non-Resident (40%) |
|---|---|---|---|
| AED 1,000,000 | AED 200,000 | AED 250,000 | AED 400,000 |
| AED 2,000,000 | AED 400,000 | AED 500,000 | AED 800,000 |
| AED 3,000,000 | AED 600,000 | AED 750,000 | AED 1,200,000 |
| AED 5,000,000 | AED 1,000,000 | AED 1,250,000 | AED 2,000,000 |
Benefits of Higher Down Payment
Lower Monthly Payments
Smaller loan means lower EMIs
Better Interest Rates
Lower LTV often qualifies for better rates
Less Total Interest
Smaller principal = less interest over time
Easier Approval
Higher equity means lower bank risk
Additional Costs Beyond Down Payment
When budgeting for property purchase, remember to account for these additional costs:
- DLD Registration Fee:4% of property value (Dubai)
- Real Estate Agent Fee:2% of property value
- Mortgage Processing:Up to 1% of loan amount
- Property Valuation:AED 2,500-3,500
- Property Insurance:Varies by property
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Related Resources
Frequently Asked Questions
What is the minimum down payment for a mortgage in UAE?
Is a higher down payment better for UAE mortgage?
Can I use gift money for my down payment in UAE?
Is down payment higher for off-plan properties?
What other costs should I budget for besides down payment?
This content is not financial advice. Please consult a licensed financial advisor before making borrowing decisions.
LeoCompare may receive referral commissions from partnered financial institutions. This does not influence the information presented.
Reviewed by the LeoCompare Editorial Team – specialists in UAE home financing content.
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