📌 Key Takeaways
- UAE Nationals generally need a minimum 20% down payment on a first ready home under AED 5 million; expats generally need around 25%.
- Off-plan properties usually require a much higher down payment — often 50% — because banks lend less against unfinished construction.
- Your down payment is separate from other buying costs like the DLD transfer fee, valuation fee, and agency commission.
- A second mortgage or investment property typically requires a larger down payment than your first home.
- Saving a slightly larger deposit than the minimum can unlock better interest rates and lower your monthly payment significantly.
What Is a Down Payment, Exactly?
Your down payment is the portion of the property price you pay upfront in cash, with the mortgage covering the remainder. In the UAE, minimum down payments are set by Central Bank regulation and enforced by every mortgage-lending bank — you cannot negotiate below the regulatory floor, though you're always free to put down more.
Minimum Down Payment Percentages
The exact minimum depends on three things: your residency status, the property's price band, and whether it's your first or an additional mortgaged property.
| Buyer | Property Value | Typical Minimum Down Payment |
|---|---|---|
| UAE National – first home | Up to AED 5,000,000 | ~20% |
| Expat – first home | Up to AED 5,000,000 | ~25% |
| UAE National / Expat – first home | Above AED 5,000,000 | ~30-35% |
| Second mortgaged property | Any value | ~35-40% |
| Off-plan property | Any value | ~50% |
Off-Plan vs Ready Property
Off-plan (under-construction) properties carry a much higher down payment requirement — usually around 50% — because the bank is financing an asset that doesn't fully exist yet and carries construction/developer risk. Ready properties, which are complete and can be inspected and valued immediately, qualify for the standard, lower down payment tiers shown above.
If your budget is tight, a ready property is often the more mortgage-friendly choice. For a full comparison, see our guide on off-plan vs ready property mortgages.
Costs Beyond the Down Payment
A common mistake first-time buyers make is budgeting only for the down payment and forgetting the additional transaction costs. On top of your deposit, plan for:
- DLD/land department transfer fee: around 4% of the purchase price in Dubai (varies by emirate)
- Mortgage registration fee: around 0.25% of the loan amount plus a small admin fee
- Property valuation fee: roughly AED 2,500–3,500
- Bank arrangement fee: commonly 0.5%–1% of the loan amount
- Agency commission: typically 2% of the price plus 5% VAT, if you used an agent
We break all of these down in detail in our complete guide to UAE property buying costs.
Strategies to Save Your Down Payment Faster
- Open a dedicated savings account and automate a fixed monthly transfer so the deposit builds without relying on willpower.
- Get pre-approved early so you know your exact target number instead of guessing — see our pre-approval guide.
- Consider a ready property over off-plan if a 50% deposit isn't realistic in your timeline.
- Factor in end-of-service gratuity or bonuses as lump-sum contributions toward your goal.
- Talk to a broker about developer payment plans for off-plan units, which can sometimes stretch part of the "down payment" over the construction period.
Worked Example
Say you want to buy a ready apartment in Dubai priced at AED 1,200,000 as an expat buying your first home:
- Down payment (25%): AED 300,000
- Loan amount (75%): AED 900,000
- DLD transfer fee (4%): AED 48,000
- Mortgage registration fee (~0.25%): AED 2,250
- Valuation + arrangement fees (approx.): AED 8,000–12,000
In total, you'd want roughly AED 358,000–362,000 in liquid savings beyond the loan itself. Use our mortgage calculator to run your own numbers.