Buying property in Dubai has become one of the most attractive investment opportunities for both residents and foreign investors. With world-class infrastructure, tax-free returns, and a stable economy, Dubai’s real estate market offers promising prospects. However, one of the key aspects to consider before purchasing property is understanding how much deposit you need for a mortgage in Dubai.

In this comprehensive guide, we’ll break down the minimum down payment requirements, mortgage deposit percentages, and additional costs that every buyer should know before securing a home loan in the UAE.

Understanding Mortgage Deposits in Dubai

A mortgage deposit, also known as a down payment, is the initial amount that a buyer must pay upfront when purchasing a property through a mortgage. The rest of the property’s value is financed by the bank. The size of your deposit depends on several factors such as your residency status, property type, and purchase price.

In Dubai, the Central Bank of the UAE (CBUAE) regulates mortgage lending, setting clear guidelines for the loan-to-value (LTV) ratio — the maximum percentage of the property value a bank can finance.

Minimum Deposit Requirements for a Mortgage in Dubai

1. For UAE Residents

If you are a UAE resident purchasing your first property, the minimum deposit required is as follows:

• For properties valued under AED 5 million:
  You must pay at least 20% of the property’s value as a down payment.

• For properties valued over AED 5 million:
  You need to pay 30% as a down payment.

2. For Non-Residents (Expats)

Non-residents can also apply for a mortgage in Dubai, but the deposit requirements are higher.

• Minimum deposit for non-residents:
  25% of the property value is required for properties under AED 5 million.
  For properties worth above AED 5 million, the deposit increases to 35%.

These rules apply to ready (completed) properties. If you’re purchasing an off-plan property, the developer might have different payment structures — often requiring up to 50% payment before handover.

Loan-to-Value (LTV) Ratios in Dubai

The loan-to-value (LTV) ratio determines the portion of the property price that the bank will finance. Here’s a quick summary based on the Central Bank’s guidelines:

Example: Calculating Your Mortgage Deposit

Let’s say you’re a UAE resident buying a ready apartment in Dubai Marina worth AED 2 million.

• Required Deposit = 20% of AED 2,000,000 = AED 400,000

• Bank Finances = 80% of AED 2,000,000 = AED 1,600,000

For a non-resident buying the same property:

• Required Deposit = 25% of AED 2,000,000 = AED 500,000

• Bank Finances = 75% of AED 2,000,000 = AED 1,500,000

Additional Costs Beyond the Deposit

When planning your home purchase, it’s essential to factor in extra costs associated with buying property in Dubai. These can add up to 6–7% of the property value. Below are the most common fees:

• Dubai Land Department (DLD) Transfer Fee: 4% of property price

• Mortgage Registration Fee: 0.25% of loan amount + AED 290

• Bank Processing Fee: 1% of loan amount

• Valuation Fee: AED 2,500 – AED 3,500

• Trustee Office Fee: AED 4,200 (approx.)

• Real Estate Agent Commission: 2% of property price

By accounting for these costs in advance, you’ll have a more accurate picture of your total investment.

Factors That Influence the Deposit Amount

Several factors can affect how much deposit you’ll need for a mortgage in Dubai:

1. Buyer Type

Your residency status (resident vs. non-resident) determines how much the bank can lend you. Non-residents face stricter lending criteria due to increased perceived risk.

2. Property Type

Banks offer different loan-to-value ratios for ready and off-plan properties. Ready homes have more favorable terms, while off-plan units often require higher deposits before completion.

3. Property Value

As the property’s value increases, so does the minimum required deposit. Luxury properties above AED 5 million attract higher deposit ratios.

4. Borrower’s Financial Profile

Your income, employment status, and credit history play a vital role. A strong financial profile may help you secure better mortgage rates and flexible terms.

5. Bank Policies

Each bank in Dubai has its own mortgage products and criteria, which may slightly vary from CBUAE’s minimum guidelines.

Tips to Secure the Best Mortgage Deal in Dubai

1. Compare Mortgage Offers:
   Don’t settle for the first bank you approach. Compare rates, processing fees, and repayment options.

2. Check Your Credit Score:
   Maintain a good credit score to increase your chances of mortgage approval and better interest rates.

3. Get Pre-Approved:
   Mortgage pre-approval gives you clarity on how much you can borrow and simplifies your property search.

4. Prepare a Larger Deposit:
   The bigger your deposit, the better the mortgage terms you can negotiate. It can also reduce your monthly repayments.

5. Consult a Mortgage Advisor:
   A qualified mortgage advisor can guide you through the paperwork, eligibility, and the best available deals in the market.

Can You Get 100% Mortgage in Dubai?

In general, 100% mortgages are not available in Dubai for individual buyers. The UAE Central Bank mandates minimum deposit requirements to maintain market stability. However, certain developer financing schemes or employer housing programs may provide partial funding assistance — but they’re not equivalent to a full 100% mortgage.

FAQs

1. How much deposit do I need to buy a house in Dubai?
UAE residents need at least 20% deposit for properties under AED 5 million. Non-residents must pay 25% or more, depending on the property value.

2. Can expats get a mortgage in Dubai?
Yes, expats can get mortgages in Dubai. However, they typically need a higher deposit and must meet specific income and credit requirements set by UAE banks.

3. What is the minimum down payment for a first-time buyer in Dubai?
For UAE residents buying their first property under AED 5 million, the minimum down payment is 20% of the property’s purchase price.

4. How much deposit do non-residents need for Dubai property?
Non-residents need to pay at least 25% deposit for properties under AED 5 million and 35% for properties over AED 5 million.

5. Are there any hidden costs when getting a mortgage in Dubai?
Yes. Buyers should budget for additional costs such as Dubai Land Department fees (4%), mortgage registration (0.25%), valuation fees, and agent commission.

6. Can I get 100% mortgage in Dubai?
No, UAE laws do not allow 100% financing. You must contribute a minimum deposit as per Central Bank regulations.

7. Is the deposit refundable if my mortgage application is rejected?
Typically, deposits paid to the seller or developer are non-refundable, unless stated otherwise in the contract. Always review terms before signing.

8. Does the deposit vary for off-plan properties?
Yes. Off-plan properties usually require higher deposits, often up to 50% before handover, depending on the developer’s payment plan.

9. What is the best bank for a mortgage in Dubai?
Top mortgage providers include Emirates NBD, HSBC, Mashreq, ADIB, and FAB — each offering different rates and terms for residents and expats.

10. Can I use my savings from abroad for the deposit?
Yes, most banks in Dubai accept deposits transferred from international accounts, but proper documentation and source-of-funds proof are required.

Final Thoughts

Understanding how much deposit you need for a mortgage in Dubai is the first step towards successful property ownership. Whether you’re a resident or an expat investor, knowing the exact deposit requirements, associated fees, and lending policies can save you from surprises later.

By planning your finances strategically and comparing mortgage options, you can confidently invest in one of the world’s most dynamic property markets — Dubai.