Key takeaways
- For a first property, the Central Bank caps lending at 85% for UAE nationals and 80% for expatriates up to AED 5M, and at 75% and 70% above that.
- For a second or investment property the cap drops to 65% for nationals and 60% for expatriates, whatever the price.
- Off-plan purchases usually need a larger deposit, and the developer payment plan is separate from your mortgage.
- Budget beyond the deposit: about 4% DLD transfer fee, around 2% agency commission, 0.25% mortgage registration, plus bank and valuation fees.
"How much deposit do I actually need?" is usually the very first question we get from a buyer, and it's also the question with the least consistent answer online, because it genuinely depends on your nationality, residency status, the property price, and whether it's ready or off-plan. Here's how the UAE Central Bank's rules actually break down.
What are the UAE Central Bank’s loan-to-value rules?
Since 2013, the Central Bank of the UAE has capped how much of a property's value a bank can lend against, known as the loan-to-value (LTV) ratio. The remaining percentage is your minimum deposit. These are the long-standing baseline caps for a first mortgaged property:
| Buyer | Property under AED 5M | Property over AED 5M |
|---|---|---|
| UAE nationals | Up to 85% LTV (15% deposit) | Up to 75% LTV (25% deposit) |
| Expatriate residents | Up to 80% LTV (20% deposit) | Up to 70% LTV (30% deposit) |
For a second or subsequent mortgaged property, or any property bought purely for investment, the cap steps down to 65% LTV for UAE nationals and 60% LTV for expatriates, regardless of the property's value, per the Central Bank's mortgage regulation (Article 3 of the Regulations Regarding Mortgage Loans). That's a 35-40% deposit floor for an investment property, before any bank chooses to be more conservative than the regulatory minimum.
How do deposits work for off-plan property?
If you're buying directly from a developer before completion, the mortgage LTV cap is considerably lower than for a ready property, which usually means a larger deposit relative to the purchase price. Keep in mind that your developer payment plan (paid directly to the developer in instalments during construction) is separate from your eventual mortgage, so it's worth mapping out both schedules together with your broker rather than assuming the mortgage covers everything from day one.
What costs do you pay on top of the deposit?
The deposit is usually the biggest single number, but it's rarely the only one. Buyers commonly forget to budget for:
- Dubai Land Department (DLD) transfer fee, typically 4% of the property value.
- Real estate agency commission, commonly around 2% of the purchase price.
- Mortgage registration fee, typically 0.25% of the loan amount, payable to the Land Department.
- Bank arrangement or processing fees, which vary by lender.
- Property valuation fee, a smaller fixed cost charged by the bank's surveyor.
Together these can add several percentage points on top of your deposit, so it's worth having your broker lay out the full upfront cash requirement before you commit to a property, not after.
How can you make the deposit more manageable?
A few things genuinely help:
- Get pre-approved first, so your real borrowing capacity (and therefore your required deposit) is confirmed before you fall in love with a property outside your budget. See our pre-approval guide.
- Reduce or clear existing debt before applying. It doesn't change your LTV cap, but it does change how much you can comfortably afford under the 50% DBR cap, which our free DBR calculator shows in real time.
- Ask about family gifting arrangements. Some banks accept a portion of the deposit as a documented gift from an immediate family member; the exact rules differ by lender, so confirm directly.
If you're buying from outside the UAE, deposit requirements are often higher again; we cover that separately in our non-resident mortgage guide.
Quick questions, quick answers
What is the minimum down payment for a mortgage in Dubai?
UAE nationals can put down as little as 15% on a first property under AED 5 million; expatriate residents typically need at least 20% for the same bracket. Off-plan properties usually require a noticeably higher deposit.
Is the down payment the only upfront cost?
No. Budget separately for the DLD transfer fee (around 4%), agency commission (around 2%), mortgage registration fee (around 0.25% of the loan), plus valuation and bank arrangement fees.
Do these loan-to-value limits ever change?
They can, and individual banks may apply more conservative limits than the regulatory maximum. Always confirm the current figure for your exact scenario before budgeting around it.
