The CBUAE Loan-to-Value Limits
The Central Bank of the UAE caps how much banks can lend against a property's value. The remainder is your minimum down payment, which must come from your own funds. The limits depend on your residency status, the property value, whether it is your first or an additional property, and whether it is ready or off-plan.
Down Payment by Buyer Type and Property Value
Don't Forget the Purchase Fees
Your down payment is only part of the upfront cash you need. On top of it, budget roughly 7% to 8% of the property price for transaction costs:
- Dubai Land Department transfer fee — 4% of the property value
- Agency commission — typically 2% plus VAT
- Mortgage registration fee — 0.25% of the loan amount
- Property valuation — around AED 2,500 to AED 3,500
- Bank arrangement / processing fee — typically up to 1% of the loan
Worked Example: Expat First Home
Ahmed, an expatriate, buys a ready apartment for AED 1,500,000. As a first home under AED 5 million, he needs a 20% down payment of AED 300,000 and can borrow AED 1,200,000. On top of the deposit, fees of roughly 7% (about AED 105,000) bring his total upfront cash to around AED 405,000.
Worked Example: Second Property
Maria already owns a home and buys a second apartment for AED 1,200,000 as an investment. Because it is an additional property, she must put down 40% — AED 480,000 — and can borrow only AED 720,000, plus fees. The higher deposit reflects the CBUAE's stricter limit on additional properties.
Down Payment Is Only Half the Approval
Meeting the LTV minimum does not guarantee approval. Banks also apply the 50% Debt Burden Ratio (DBR) cap: your total monthly obligations, including the new mortgage payment, must not exceed 50% of your gross monthly income. A healthy deposit with too much existing debt can still lead to a decline.
Check Your Eligibility
Confirm both your borrowing limit and your ratio before you commit. Use the UAE mortgage eligibility calculator to estimate your maximum loan and required down payment, and the UAE DBR calculator to check your debt burden ratio against the 50% cap.
Frequently Asked Questions
How much down payment do I need for a mortgage in the UAE?
Under Central Bank of the UAE (CBUAE) rules, expatriates need at least a 20% down payment on a first residential property valued up to AED 5 million (an 80% loan-to-value mortgage). UAE nationals need at least 15% (85% LTV). For properties above AED 5 million, expats need 30% and nationals need 25%. These minimums exclude purchase fees.
What is the down payment for a second property in the UAE?
For any second or additional property — regardless of value — both expatriates and UAE nationals must put down at least 40% of the purchase price (a 60% LTV mortgage). This higher requirement applies to investment and buy-to-let purchases as well.
How much deposit do I need for an off-plan property in the UAE?
Off-plan (under-construction) properties require a higher down payment of at least 50% of the value under CBUAE mortgage rules. Developers may also have their own payment-plan structures during construction, separate from the mortgage deposit.
Do UAE purchase fees count toward the down payment?
No. The down payment is separate from transaction fees. Budget for roughly 7% to 8% extra: a 4% Dubai Land Department transfer fee, around 2% agency commission, a mortgage registration fee (0.25% of the loan), valuation fees, and bank arrangement fees. These must be paid in cash on top of your deposit.
Why is the expat down payment higher than for nationals?
The CBUAE sets slightly higher loan-to-value limits for UAE nationals as a policy to support citizen home ownership. Expats face a 20% minimum versus 15% for nationals on a first home under AED 5 million. The gap widens for higher-value and second properties.
Can I borrow money to fund my UAE mortgage down payment?
Banks expect the down payment to come from your own funds and will scrutinize its source. Using a personal loan for the deposit is discouraged because the new repayment increases your Debt Burden Ratio (DBR), which is capped at 50% of monthly income and can reduce or block your mortgage approval.
How do I check if I qualify for a UAE mortgage?
Two checks matter: the down payment (LTV) minimum and your Debt Burden Ratio. Even with a sufficient deposit, your total monthly obligations including the new mortgage must stay within the 50% DBR cap. Use a UAE mortgage eligibility and DBR calculator to confirm both before applying.
Related UAE Tools & Guides
Explore all our UAE loan calculators, check your personal loan limit with the UAE loan eligibility calculator, or learn the fundamentals in our what is UAE DBR guide.