Mortgage Deposit in Dubai: Minimum Required in 2025
- June 10, 2025
Minimum Mortgage Deposit in Dubai: 2025 Guide for Expats & Nationals
How Much Deposit Is Required for a Mortgage in Dubai?
What is the minimum deposit required for a mortgage in Dubai?
The minimum deposit required for a mortgage in Dubai is typically 20% of the property value for expats and 15% for UAE nationals. However, the total upfront cost can be higher due to associated fees and charges.
Dubai's dynamic skyline and investor-friendly environment make it one of the hottest property markets globally. Whether you're a first-time buyer or a seasoned investor, understanding the financial entry point is crucial, especially when it comes to the deposit for a mortgage. With property prices on the rise and increasing interest in prime and suburban areas alike, now is the time to understand exactly what’s expected of you financially.
What is the Minimum Deposit Required for a Mortgage in Dubai?
Expats need at least a 20% deposit for properties under AED 5 million; UAE nationals need 15%.
According to the UAE Central Bank regulations:
- Expats must pay a minimum of 20% of the property value for homes priced under AED 5 million.
- For homes above AED 5 million, the deposit rises to 30%.
- UAE nationals enjoy slightly better terms, with a 15% minimum for properties under AED 5 million and 25% for more expensive homes.
Keep in mind, these are minimums. Lenders may ask for higher deposits based on creditworthiness, income, or property type. Your individual profile—salary level, existing debts, and even your employer’s classification—can significantly influence your final mortgage terms.
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How Do Deposit Requirements Differ Between Expats and UAE Nationals?
UAE nationals benefit from lower deposit requirements compared to expats.
Here's a simple breakdown:
| Buyer Type | Property Value < AED 5M | Property Value > AED 5M |
| Expats | 20% | 30% |
| UAE Nationals | 15% | 25% |
These figures reflect the Loan-to-Value (LTV) ratios regulated by the Central Bank of the UAE, with locals eligible for up to 85% LTV and expats up to 80%.
This difference allows Emirati buyers more access to premium properties with lower upfront costs, which has contributed to the increasing rate of local homeownership in recent years.
Read more: Top Dubai Mortgage Offers for Non-UAE Residents
What Additional Upfront Costs Should Buyers Consider in 2025?
Buyers should budget for up to 7-8% of the property value in additional upfront fees.
Besides the deposit, you’ll encounter:
- Dubai Land Department (DLD) fees: 4% of the purchase price
- Registration fees: AED 2,000–4,000 depending on property price
- Bank processing fees: ~1% of loan amount
- Valuation fees: AED 2,500 to AED 3,500
- Broker commission: Typically 2%
- Trustee office fee: AED 4,200 (standard for DLD transactions)
- Mortgage registration fee: 0.25% of the loan amount
These extras can add up quickly, so it’s wise to have cash reserves beyond the minimum deposit. Many financial advisors recommend keeping a separate emergency fund aside from your property-related savings.
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Are There Zero-Down-Payment Mortgage Options Available in Dubai?
While rare, some developers offer zero down payment options for off-plan properties through post-handover payment plans.
Banks in Dubai do not offer 100% financing, but developers may advertise deals like:
- 80/20 payment plans: Pay 80% during construction and 20% post-handover
- Rent-to-own schemes: Monthly payments go toward ownership
- Flexible installment plans: Spread across 5–7 years post-handover
These are developer-backed offers and not traditional mortgages, so do your due diligence. Read the fine print—sometimes "zero down" options come with premium pricing or steep post-handover balloon payments.
See the Best Off-Plan Projects in Dubai
How Do Deposit Requirements Vary for Off-Plan vs. Ready Properties?
Off-plan properties often require smaller initial deposits but come with phased payment plans.
- Ready properties: Subject to standard LTV rules (15%-30% deposit depending on buyer type and value)
- Off-plan properties: Developers may offer lower booking deposits (as little as 10%-20%) with the remainder paid in stages
In addition:
- Off-plan buyers usually sign a Sales and Purchase Agreement (SPA) and pay installments based on construction milestones.
- Mortgage approval often only kicks in closer to handover, which means buyers need sufficient liquidity during the construction period.
Always confirm the developer’s reputation and ensure they are registered with the DLD.
Read more: Invest Smart: Off-Plan vs. Ready Property Pros & Cons
What Are the Loan-to-Value (LTV) Ratios for Mortgages in Dubai?
The LTV ratio dictates how much financing you can get, capped at 80% for expats and 85% for nationals.
Here’s the breakdown:
- Expats:
- Up to 80% LTV for properties < AED 5M
- 70% LTV for properties > AED 5M
- UAE Nationals:
- Up to 85% LTV for properties < AED 5M
- 75% LTV for properties > AED 5M
Higher LTV ratios can mean more flexibility in terms of liquidity, but they also usually result in higher monthly repayments. Make sure to factor this into your long-term affordability calculations.
How Can Buyers Prepare Financially for a Mortgage in Dubai?
Start saving early, maintain a strong credit score, and get pre-approved before house hunting.
Tips to get financially mortgage-ready:
- Save at least 25%-30% of the property value for the deposit and fees
- Check your credit report regularly and reduce existing debts
- Avoid job changes during the approval period
- Get pre-approved to know your borrowing limit
- Work with a mortgage broker: They can help you find the best rates and navigate bank requirements
- Understand your Debt Burden Ratio (DBR): Your monthly obligations shouldn’t exceed 50% of your income
Homeland Realty Real Estate can guide you through these steps and connect you with top mortgage advisors in Dubai. Personalized planning can prevent financial surprises down the road.
Frequently Asked Questions
1. What is the minimum salary required to qualify for a mortgage in Dubai?
Most banks require a minimum monthly salary of AED 15,000, though some may accept AED 10,000 with stricter terms.
2. Can non-residents obtain a mortgage in Dubai?
Yes, some banks offer non-resident mortgages, but with lower LTV ratios (usually 50%-60%) and higher interest rates.
3. Are there any government incentives for first-time homebuyers in Dubai?
While not widespread, Emirati buyers may benefit from local housing programs. No major incentives exist yet for expats.
4. How long does the mortgage approval process take in Dubai?
It typically takes 5-10 working days for pre-approval and up to 3 weeks for final approval. Some banks now offer digital processing, speeding things up significantly.
5. Is it possible to negotiate the deposit amount with the seller or developer?
Yes, especially for off-plan projects, developers may be open to flexible payment plans or reduced booking deposits.
6. Do banks offer mortgage pre-approval in Dubai?
Absolutely. Pre-approval is valid for 60-90 days and helps define your budget before property shopping. It also strengthens your negotiation power.
7. Can I use a personal loan as a mortgage deposit?
Technically possible, but highly discouraged by banks as it raises your debt burden and can affect approval. It could also negatively impact your DBR.
Read more:
Dubai Mortgage Requirements for Residents & Non-Residents