Buyer's Guides · 7 min · 2026-10-23
Dubai Mortgage Down Payment: How Much Cash You Really Need
The down payment is only part of the cash you need. Here is a line-by-line example for an AED 1.5 million home, with the official Dubai Land Department fees.
The short answer
To buy a ready home in Dubai with a mortgage, you need cash for the down payment plus the purchase fees. For an expatriate buying a first home below AED 5 million, the minimum down payment is 20% of the appraised value (CBUAE Mortgage Regulations, Article 3.2). On top of that come the Dubai Land Department (DLD) fees: the 4% transfer fee, the 0.25% mortgage registration fee on the loan plus admin fees, the AED 250 title deed fee and the trustee office fee (AED 4,000 + VAT for properties of AED 500,000 or more). For an AED 1.5 million apartment, that is roughly AED 367,000 before lender and agency costs, about 24.5% of the price.
Step 1: the down payment
The down payment is the part of the price the loan does not cover. Its minimum depends on who you are and what you buy (Article 3.2):
| Buyer and property | Maximum LTV | Minimum down payment |
|---|---|---|
| Expatriate, first home below AED 5M | 80% | 20% |
| Expatriate, first home above AED 5M | 70% | 30% |
| Expatriate, second home or investment | 60% | 40% |
| UAE national, first home up to AED 5M | 85% | 15% |
| UAE national, first home above AED 5M | 75% | 25% |
| UAE national, second home or investment | 65% | 35% |
| Any buyer, off plan | 50% | 50% |
Two rules shape where that money comes from:
- Your own resources. Article 2.4 says the down payment must not come from personal loans or credit cards.
- The appraised value. The LTV applies to the independent valuation (Article 2.5). If it is lower than the price, you pay the difference in cash.
Read UAE mortgage LTV limits explained for the details.
Step 2: the Dubai Land Department fees
| Fee | Official basis | Who usually pays |
|---|---|---|
| Transfer fee | 4% of the price | Usually the buyer in practice; the split is set by the sale contract |
| Mortgage registration | 0.25% of the loan amount + admin fees | Buyer (borrower) |
| Title deed | AED 250 | Buyer |
| Trustee office fee | AED 4,000 + VAT (≥ AED 500,000); AED 2,000 + VAT below | Buyer in practice |
The 4% transfer fee is often described as "2% buyer, 2% seller", and the parties can agree that split in their contract. In day-to-day practice the buyer usually pays the full 4%, so it is prudent to budget for it.
Worked example: AED 1.5 million ready apartment
Assumptions: expatriate, first home, valuation equal to the price, 80% LTV, buyer pays the full 4% transfer fee.
| Line | Calculation | Amount (AED) |
|---|---|---|
| Purchase price | 1,500,000 | |
| Loan (80%) | 1,500,000 × 80% | 1,200,000 |
| Down payment (20%) | 1,500,000 × 20% | 300,000 |
| DLD transfer fee | 1,500,000 × 4% | 60,000 |
| Mortgage registration | 1,200,000 × 0.25% | 3,000 + admin fees |
| Title deed | fixed | 250 |
| Trustee office fee | price ≥ AED 500,000 | 4,000 + VAT |
| Total before lender and agency costs | 367,250 + VAT and admin fees |
That is about 24.5% of the price in cash, against the 20% many buyers have in mind.
What is not in the table
- Lender costs, such as an arrangement fee, a valuation fee and life or property insurance. Article 4 requires the lender to list every fee in a separate schedule attached to the loan contract, so ask for it early.
- Agency commission, if you buy through a broker. This is agreed with the agent.
- Moving, furnishing and service charges, which depend on the property.
Keep a safety margin for these items and for a possible valuation gap. Our guide on the valuation gap shows how fast it can add up.
Monthly payment for this example
With a loan of AED 1,200,000 over 25 years at an example rate of 4%:
| Loan | Term | Example rate | Monthly payment |
|---|---|---|---|
| AED 1,200,000 | 25 years | 4% (example) | AED 6,334 |
To check affordability, the lender stresses this payment at a rate 2 to 4 points higher (Article 3.1). See the UAE mortgage stress test explained.
Off plan: the cash timeline is different
For an off-plan purchase the maximum LTV is 50%, so at least half of the value comes from you. Article 2.1 requires the lender to pay the developer with your equity first, before any loan money, and only against independently confirmed construction milestones. Dubai Law No. 8 of 2007 requires the developer to place buyers' payments in a RERA-approved escrow account for the project. Plan that schedule early, alongside your fees.
How to build your cash budget
- Start from the property value and your buyer category to get the minimum down payment.
- Add the 4% transfer fee, the 0.25% mortgage registration plus admin, the AED 250 title deed and the trustee fee.
- Ask your lender for its fee schedule (Article 4) and add every line.
- Add any agency commission.
- Keep a buffer for a valuation below the price.
FAQ
Can I borrow the down payment with a personal loan?
No. Article 2.4 of the CBUAE regulation says the down payment must come from your own resources, not from personal loans or credit cards.
Is the 4% DLD fee always paid by the buyer?
The fee is 4% of the price. Who pays it is agreed in the sale contract. In practice the buyer usually pays it, so budgeting the full 4% is the prudent approach.
Is the mortgage registration fee charged on the price or the loan?
On the loan amount: 0.25% of the loan plus admin fees. See mortgage registration at the Dubai Land Department.
Can the fees be added to the mortgage?
The loan is limited by the LTV cap on the appraised value, so fees are generally paid in cash. Ask your lender how its policy treats them.
Run your own figures with the Dubai buying costs calculators or the minimum down payment guide.
Reviewed by Ahmed Benjas, co-founder & CEO of Cevitas Real Estate
Moroccan real estate expert based in Dubai, co-founder & CEO of Cevitas Real Estate, a RERA-licensed brokerage (NGI House, Deira), with an AED 200M+ track record. He works in French, Arabic, Darija and English.
Related guides
Calculators for this guide: Mortgage calculator Dubai & UAE · Dubai mortgage for non-residents · Off-plan calculator Dubai