What Is the Minimum Down Payment to Buy Property in Dubai?

The minimum down payment to buy property in Dubai is 20% of the price for an expat buying a first ready property worth AED 5 million or less, under the UAE Central Bank's mortgage rules. It rises to 30% above AED 5 million, 40% for a second property, and 50% for anything bought off-plan. The number that actually matters, though, is total cash required: the down payment plus the purchase costs banks will not finance, which typically add another 7–10% of the price.

What are the official minimum down payment rules in Dubai?

The Central Bank of the UAE (CBUAE) sets maximum loan-to-value (LTV) ratios in its Mortgage Loan Regulations (C 31/2013, as amended). Your minimum down payment is simply whatever the bank cannot lend:

Expat, first property up to AED 5M — Max bank financing (LTV): 80%; Minimum down payment: 20%
Expat, first property above AED 5M — Max bank financing (LTV): 70%; Minimum down payment: 30%
Expat, second or subsequent property — Max bank financing (LTV): 60%; Minimum down payment: 40%
UAE national, first property up to AED 5M — Max bank financing (LTV): 85%; Minimum down payment: 15%
UAE national, first property above AED 5M — Max bank financing (LTV): 75%; Minimum down payment: 25%
UAE national, second or subsequent property — Max bank financing (LTV): 65%; Minimum down payment: 35%
Off-plan property, all buyers — Max bank financing (LTV): 50%; Minimum down payment: 50%

These are regulatory ceilings. A bank may not exceed them, but it is free to lend less. In other words, 20% is the best case for a mortgage-financed purchase, not a guarantee from any lender.

Figures reflect what was published as of September 2026 and can change; verify with the official source before you commit.

Why is the down payment not the full cash you need?

The most common budgeting mistake is saving exactly 20% and then discovering that every other cost is payable in cash. Banks finance a share of the property price; they do not finance the transaction costs. The main ones are:

Dubai Land Department (DLD) transfer fee: 4% of the price (legally split 2%/2%, but in practice the buyer pays the full 4%).
Registration trustee fee: AED 4,000 + 5% VAT for prices of AED 500,000 and above (AED 2,000 + VAT below that).
Title deed issuance: AED 580, plus AED 10 each for the knowledge and innovation fees.
Mortgage registration: 0.25% of the loan amount plus roughly AED 290 in admin charges.
Bank valuation: typically AED 2,500–3,500.
Brokerage commission: customarily 2% + 5% VAT.
Developer NOC on a resale: AED 500–5,000 + VAT depending on the developer.
Bank arrangement fee: varies by bank; confirm before signing.

Rule of thumb: budget 7–10% of the price as cash costs on top of your down payment.

Worked example: how much cash for an AED 1.5 million apartment?

Assume you are a resident expat buying your first, ready property at AED 1,500,000:

Down payment (20%): AED 300,000
DLD transfer fee (4%): AED 60,000
Brokerage commission (2% + VAT): AED 31,500
Registration trustee: AED 4,000 + VAT
Mortgage registration (0.25% of a AED 1,200,000 loan): AED 3,000 + about AED 290
Valuation, title deed and small fees: roughly AED 3,000–4,000

Total: about AED 400,000 in cash, or roughly 27% of the price, not 20%. Add whatever arrangement fee your bank charges. If the same unit were off-plan and bank-financed, the minimum down payment alone would be AED 750,000.

How much can a bank finance when buying property in Dubai?

This is the mirror image of the down payment question, and three separate caps apply at once. The lowest one wins:

The LTV ceiling from the table above, calculated on the purchase price or the bank's valuation, whichever is lower.
The debt burden ratio (DBR): all your monthly repayments, including the new mortgage, credit cards and other loans, may not exceed 50% of your gross income.
The income multiple: the loan may not exceed 7 times annual income for expats, or 8 times for UAE nationals.

If your annual income is AED 240,000, the income multiple caps your loan at AED 1,680,000 regardless of how expensive the property is. Existing car loans or card balances can bring the DBR cap far lower than that. Your final loan is the smallest of the three figures, never the largest.

The maximum tenor is 25 years, and banks usually tie the end of the loan to your age at maturity. A shorter tenor means a higher monthly instalment, which in turn reduces how much you can borrow within the 50% DBR.

What about non-resident buyers?

The CBUAE ceilings apply to everyone, but bank practice with non-residents is stricter. Many lenders finance only 50–60% of value for non-residents, and some do not lend to non-residents at all. In practical terms, a non-resident should plan for a 40–50% down payment rather than 20%, plus the same purchase costs. Expect to provide a passport, proof of income in your home country and bank statements, and often to open a UAE bank account. Treat these percentages as bank practice, not regulation, and confirm them with your lender before building a budget around them.

Off-plan: developer payment plan or bank mortgage?

Buying off-plan gives you two routes to pay:

Developer payment plan: instalments during construction and sometimes after handover, all paid into a DLD-registered escrow account under Law No. 8 of 2007. There is no regulatory minimum down payment here; the developer sets the booking amount and instalment schedule, and these vary by project.
Bank mortgage: capped at 50% LTV for off-plan, with many banks releasing funds only at construction milestones or at handover.

Most off-plan buyers use the developer's plan during construction and then seek a bank mortgage at handover to cover the final instalment. Remember that the 4% DLD fee is payable at Oqood registration unless a specific developer is absorbing it as a promotion, which must be checked project by project.

What reduces how much a bank will lend?

Even with a 20% down payment ready, the bank may approve less than you expect because of:

A valuation below the purchase price; the loan is based on the lower figure and you fund the gap.
Existing liabilities that push your DBR above 50%.
Variable or partially documented income, such as commissions, freelance earnings or income from abroad.
Age that shortens the tenor below 25 years.
A second property already in your name, which drops the ceiling to 60%.
Internal bank policy on a particular developer, project or area.

The practical fix is a pre-approval before you shortlist properties. It is typically valid for 60–90 days depending on the bank, and it tells you your real number rather than the theoretical one.

When this applies, and when it does not

CBUAE caps apply to residential mortgages from UAE-licensed banks to individuals.
They do not apply to cash buyers, who face no minimum down payment at all and pay only the price plus purchase costs.
Developer payment plans are contracts, not bank loans, so the 50% off-plan cap does not govern them.
Buying through a company or with financing from outside the UAE involves different considerations and needs specialist advice.
The rules distinguish expat from national and first from second property, so identify your category before running the numbers.

Bottom line

The official minimum down payment is 20% for an expat's first ready property up to AED 5 million, 30% above that, 40% for a second property and 50% off-plan. The cash you really need is the down payment plus 7–10% in purchase costs, which pushes the realistic figure for an AED 1.5 million apartment to about AED 400,000. Non-residents should plan for a higher percentage and confirm it with the bank.

If you would rather start from your goal and your true budget than from whatever happens to be listed for sale, that is exactly where a good conversation begins.

Frequently asked questions

Can I buy property in Dubai with less than 20% down?

Not with a UAE bank mortgage if you are an expat: the 80% LTV ceiling makes 20% the regulatory minimum for a first ready property up to AED 5 million. UAE nationals can go as low as 15%. Developer payment plans on off-plan units are not bank loans, so their booking amounts can be lower, but they come with their own schedule and terms.

Does the bank finance DLD fees and the agent's commission?

No. UAE banks lend against a percentage of the property price or valuation only. The 4% DLD transfer fee, brokerage commission, trustee, valuation and mortgage registration fees are all paid in cash by the buyer. Budget roughly 7–10% of the price for these on top of your down payment.

How is the 50% debt burden ratio calculated?

The bank adds up all your existing monthly repayments, such as car loans, personal loans and minimum credit card payments, then adds the expected mortgage instalment. If the total exceeds half of your gross monthly income, the loan amount is reduced until it fits within 50%, regardless of the property's value or the LTV ceiling.

Is the 10% deposit on Form F extra to the down payment?

No. On a ready purchase you normally hand over a cheque of around 10% with the Form F (MOU), held until transfer. It counts toward your down payment rather than adding to it. But because the bank releases funds only at transfer, that 10% must be available from your own cash before the loan exists.

Can a non-resident from Egypt, the GCC or Europe get a Dubai mortgage?

Yes with some banks, not all. Regulation does not prohibit it, but banks apply stricter internal policies to non-residents, and financing of 50–60% is common. You will need proof of income from your home country, bank statements, and often a UAE bank account. Confirm the lender's non-resident policy before committing to a purchase.

Is the LTV applied to the purchase price or the bank valuation?

To the lower of the two. If you agree AED 1.5 million but the bank values the unit at AED 1.4 million, 80% is calculated on AED 1.4 million and you fund the AED 100,000 difference in cash in addition to your down payment. Where possible, make your purchase agreement conditional on financing.

What documents does a bank need to decide how much it will lend?

A salary certificate or employment letter, 6–12 months of bank statements, payslips, a list of existing liabilities, passport, and Emirates ID plus residence visa for residents. Once you choose a property, the bank orders its own valuation. Income and identity documents alone are enough for a pre-approval, usually valid for 60–90 days.

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If you want to know your real number before you start viewing properties, the Laguna Life team starts from your goal and budget, then helps you shortlist options and coordinate with lenders. Message us on WhatsApp at +971 56 100 0928 or through lagunalife.ae. Register your interest now.