Minimum down payment under Central Bank LTV caps.
Minimum cash deposit
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LTV cap
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Maximum loan
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Deposit + fees
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Your deposit is set by a national rule, not the bank’s mood
The minimum down payment on a UAE home is not really a negotiation with your bank. It is fixed by a loan-to-value cap set by the Central Bank of the UAE, and the cap depends on who you are and what you are buying. An expatriate buying a first home priced at or below AED 5 million can borrow up to the cap this calculator models as 80 percent, which means a 20 percent deposit. A UAE national in the same position gets a higher ceiling, modelled here as 85 percent, so a 15 percent deposit. Buy a second property and the cap drops to 65 percent, and an off-plan purchase is capped at 50 percent, meaning half the price in cash. Above AED 5 million the caps tighten by a further five points. These percentages are the figures this tool applies, and you should confirm the current caps for your profile with the Central Bank of the UAE, because mortgage regulations are reviewed periodically.
The deposit is not your only cash outlay
The headline deposit understates what you actually need at the table. On top of the down payment you pay transaction costs that this calculator estimates: the Dubai Land Department transfer fee at 4 percent of the property value, plus fixed admin and title-deed charges, and in practice an agency commission of around 2 percent and a mortgage registration fee too. These are not financed by the bank, so they must come from cash alongside the deposit. The single most common shock for first-time buyers is budgeting only the 20 percent and then discovering they need closer to a quarter of the price once fees are added. Build the fees in from day one. The transfer fee in particular is a Dubai Land Department charge, and other emirates have their own fee structures, so verify the rate for the emirate you are buying in.
A AED 2 million flat as a first-time expat buyer
Take an expatriate buying their first home at AED 2 million. The cap this tool applies for that profile is 80 percent, so the maximum loan is AED 1.6 million and the minimum deposit is AED 400,000. Then the fees stack on top.
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So the real upfront cash is closer to AED 480,830 than the AED 400,000 deposit alone. The chart splits the AED 2 million price into the financed loan and the buyer’s cash, with the fee sliver sitting on top of the deposit.
Why the second-home and off-plan caps are stricter
The lower caps on second properties and off-plan units are deliberate. The Central Bank tightens lending where the risk of speculation and price volatility is higher, which is exactly the case for investors buying additional units or committing to a development that is not yet built. If you are buying off-plan, planning for the 50 percent cap modelled here from the outset saves a nasty surprise, because you cannot borrow your way around it. There is a separate constraint worth knowing too: the debt burden ratio caps your total repayments at half your income, so even when the LTV allows a large loan, your income may not support it. The two rules work together, and a deposit that clears the LTV test is wasted if the repayment fails the affordability test. This tool is for buyers sizing the cash they need before they start viewings, whether resident expats, nationals, or investors adding to a portfolio.
Can I borrow the deposit or the fees?
Generally no. The Central Bank rules are designed to ensure the deposit is genuine equity, so banks will not lend you the down payment, and the transaction fees must come from your own funds too. Using a personal loan to manufacture a deposit also pushes up your debt burden ratio, which can sink the mortgage approval, so it tends to backfire.
Does the cap change once the property is above AED 5 million?
Yes. For values above AED 5 million the caps step down, modelled here as 70 percent for expats and 75 percent for nationals on a first home, so the deposit requirement rises. A AED 6 million purchase therefore needs a proportionally larger cash deposit than a AED 4 million one, which catches out buyers stretching into the higher price band.