Mortgage Down Payment in UAE

The down payment is the upfront amount a buyer must pay when purchasing property in the UAE. It is one of the most important factors in mortgage planning, as banks only finance a portion of the property value. Understanding down payment requirements helps buyers plan their budget and determine how much financing they can obtain.

FAB · ADIB · DIB · ENBD17+ Years Experience20+ UAE Banks

Check Your Eligibility Speak to an Advisor

What is a Down Payment

A down payment is the portion of the property price paid by the buyer, while the remaining amount is financed through a mortgage.

Property Purchase Price

Bank Finances Remaining Amount

Buyer Pays Down Payment

Minimum Down Payment in UAE

Down payment requirements are regulated by the UAE Central Bank and vary based on buyer type and property value.

UAE National

• Minimum 15% down payment

• Minimum 25% down payment

EXPAT RESIDENT

• Minimum 20% down payment

• Minimum 30% down payment

Non-Residents

• Typically 50% to 65% financing

• Down payment ranges between 35% and 50%

Additional Upfront Costs

for mortage

Bank processing fee (typically around 1%)

Property valuation fee 2500 to 5000

Transfer fees (e.g., Abu Dhabi Municipality fees 2%)

Mortgage registration fees (0.01%)

Real estate agent commission (2% + VAT)

These costs are separate from the down payment and must be paid upfront.

Can the Down Payment Be Financed

Banks do not allow the down payment to be financed through the same mortgage.

Buyers are required to provide the down payment from their own funds.

How Property Valuation Affects Down Payment

Purchase price

Bank valuation

Buyer covers the difference

Required down payment

Additional payment if valuation is lower

Why Work With a Mortgage Broker

Mortgage brokers help buyers understand total upfront costs, not just the down payment.

Clear breakdown of required funds

Access to 20+ UAE banks

Guidance on financing structure

Support from pre-approval to transfer

Free Mortgage Eligibility Check

Planning to purchase property in Al Reem Island?

Prime Rate Hub offers a structured eligibility assessment based on your profile and selected building.

Start Free Eligibility Check Speak to an Advisor

We work with the top banks in UAE

FAQ

Mortgage Rates

What is the minimum down payment for a mortgage in UAE

The minimum down payment is typically 15% for UAE nationals and 20% for expat residents for properties below AED 5 million.

Can I buy a property with 10% down payment in UAE

No, UAE Central Bank regulations require higher minimum down payments depending on the buyer category.

Do I need to pay more than the down payment ?

1. Dubai Fee Breakdown (Approx. 7% total)

In Dubai, the fees are generally higher due to the 4% transfer fee, which is almost always paid by the buyer in the secondary market

Fee Type	Amount	Who Pays?
DLD Transfer Fee	4% of Property Value + AED 580	Buyer
Registration Trustee Fee	AED 4,200 (for properties > 500k)	Buyer
Agency Commission	2% + 5% VAT	Buyer
Mortgage Registration	0.25% of Loan Amount + AED 290	Buyer
Bank Processing Fee	Up to 1% of Loan Amount	Buyer
Valuation Fee	AED 2,500 – AED 3,500	Buyer

Abu Dhabi Fee Breakdown (Approx. 5% total)

Abu Dhabi is often slightly “cheaper” to enter because the registration fee is lower and, by law, is meant to be split between buyer and seller (though this can be negotiated)

Fee Type	Amount	Who Pays?
Municipality Reg. Fee	2% of Property Value	Usually split (1% each)
Agency Commission	2% + 5% VAT	Buyer
Mortgage Registration	0.1% of Loan Amount (Max AED 1,000)	Buyer
Bank Processing Fee	Up to 1% of Loan Amount	Buyer
Valuation Fee	AED 2,500 – AED 3,500	Buyer
Developer NOC Fee	AED 500 – AED 5,000	Buyer

Can banks finance 100% of the property value

Yes, but eligibility is

UAE Central Bank regulations, banks cannot provide 100% financing for the property price.

The Breakdown: * Expats: Maximum 80% loan-to-value (LTV) for first-time buyers.

UAE Nationals: Maximum 85% LTV for first-time buyers.
The Prime Rate Hub Advantage: While the bank won’t fund 100% of the price, we can often arrange “Fee Financing” or a bundled personal loan to cover the additional 6-7% in purchase costs, meaning you only need to focus on the core down payment

more restrictive and requires stronger financial profiles.

What happens if the bank valuation is lower than the price

The buyer must pay the difference between the valuation and purchase price in addition to the down payment.

Can I use a personal loan for down payment

Some buyers consider this, but it impacts DBR and may affect mortgage eligibility, Certain banks (like DIB, ADCB, or ADIB) may offer internal “bundled” solutions for high-income or “Excellency” segment clients where the personal loan is structured specifically to cover property acquisition costs, provided the overall DBR remains within the 50% cap.