Minimum Down Payment in Dubai 2025: First Home vs Investment

The minimum down payment in Dubai in 2025 depends on your buyer profile and property type. For expatriate residents, first homes typically require 20% down up to AED 5 million (30% above AED 5 million). Investment or second properties require about 40% down. UAE nationals typically need 15% and 25% for first homes and about 35% for investment. Off‑plan mortgages cap at 50% LTV, implying 50% down. These caps follow UAE Central Bank rules and local practice.

What “minimum down payment” means in Dubai and why it matters

Your down payment is the equity you pay upfront when buying a property. It determines the loan-to-value (LTV) you can obtain, influences bank approval, and shapes your monthly payments and long-term ROI.

• In Dubai, down payment rules are set by the UAE Central Bank and applied by lenders, with additional due diligence by banks.
• The rules distinguish between owner-occupiers (first homes) and investors (second/subsequent homes).
• Off-plan financing is more conservative, with a lower maximum LTV due to completion risk.

Under the UAE Central Bank’s latest consolidated mortgage regulations, maximum LTVs (and therefore minimum deposits) are as follows:

• UAE Nationals: up to 85% LTV first home ≤ AED 5m (15% down), 75% LTV first home > AED 5m (25% down), 65% LTV for second/investment homes (35% down).
• Expatriates: up to 80% LTV first home ≤ AED 5m (20% down), 70% LTV first home > AED 5m (30% down), 60% LTV for second/investment homes (40% down).
• All categories (off-plan): max 50% LTV (50% down).

You should also expect to pay government fees like the Dubai Land Department (DLD) transfer fee (commonly 4% of the purchase price) and a mortgage registration fee (0.25% of the loan amount), plus admin charges, valuation, trustee, and agency fees. See the DLD’s fee pages for the official charges for mortgage registration and transaction costs Dubai Land Department – Mortgage registration and DLD service on sale/mortgage transactions.

First home vs investment: the 2025 deposit rules at a glance

Below is a quick comparison of minimum down payments implied by the Central Bank’s maximum LTVs. The bank can ask for more if your profile or the property’s risk requires it.

Important nuances:

• Non-residents: Many lenders apply stricter LTVs and require larger deposits for non-resident borrowers, often in the 25–50% deposit range depending on bank policy and profile.
• Banks can be more conservative than the maximum LTVs if your income stability, employer category, or credit profile introduces higher risk.
• For off-plan, many buyers use developer payment plans instead of mortgages until handover.

How deposit size impacts your plan

• Affordability: A higher down payment reduces the loan amount, potentially lowering your monthly instalments and total interest/profit paid.
• Approval odds: Meeting the minimum deposit often improves approval chances because your LTV is within Central Bank limits.
• Rate flexibility: Lower LTV borrowers sometimes achieve more competitive rates or better product options.

Example for an expat resident first-home buyer:

• Price: AED 2,000,000
• Max LTV (≤ AED 5m): 80% → Loan up to AED 1,600,000
• Minimum down payment: 20% → AED 400,000
• Additional costs (illustrative): DLD 4% = AED 80,000; mortgage registration 0.25% of loan (AED 4,000) + admin; valuation ~AED 2,500–3,500; trustee fee; agency fee (often ~2%); and incidental admin.

A simple 7‑step framework to plan your purchase

1. Define buyer profile

• Are you an owner-occupier or investor?
• Are you a UAE national, resident expat, or non-resident?

2. Map your LTV band

• Use the table above to determine your implied minimum deposit.
• For off-plan with a mortgage, assume 50% down.

3. Calculate all upfront cash

• Down payment + DLD 4% + mortgage registration (0.25% of loan) + trustee/admin + valuation + agency commission + NOC (if applicable).
• Add a 5–10% buffer for unforeseen costs.

4. Pre-approval

• Secure a bank pre-approval to confirm your eligibility, indicative LTV, and rate.

5. Property selection

• Align budget and deposit with community, unit type, and expected yields. For context, Knight Frank indicates apartments often achieve around 5–7% gross yields in Dubai’s current cycle, while villas/townhouses come in slightly lower at 4.5–6%.

6. Offer and conveyancing

• Negotiate the price and terms. Lock in timelines and clarify fee responsibilities in your agreement.

7. Registration and handover

• Settle DLD and mortgage registration fees, complete trustee office formalities, and plan for move-in or leasing.

Practical examples you can copy

Example A: First home (Expat resident, ready property)

• Price: AED 1,800,000 (ready apartment)
• Max LTV for first home ≤ AED 5m: 80% → Loan up to AED 1,440,000
• Minimum down payment (20%): AED 360,000
• Fees (illustrative): DLD 4% = AED 72,000; mortgage registration 0.25% of AED 1,440,000 = AED 3,600 + admin; valuation AED 3,000; trustee fee; agency fee ~2% = AED 36,000; NOC if applicable.
• Total cash at completion (rounded, indicative): AED 360,000 + AED 72,000 + AED 3,600 + AED 3,000 + AED 36,000 + trustee/admin ≈ AED 480,000–490,000
• Outcome: Achieves homeownership with a predictable monthly instalment. If planning for future rental, factor service charges and expected yield.

Example B: Investment (Expat resident, second property)

• Price: AED 2,200,000 (villa)
• Max LTV for investment: 60% → Loan up to AED 1,320,000
• Minimum down payment (40%): AED 880,000
• Fees (illustrative): DLD 4% = AED 88,000; mortgage registration 0.25% of AED 1,320,000 = AED 3,300 + admin; valuation AED 3,000; trustee fee; agency ~2% = AED 44,000.
• Rental yield planning: If targeting 5.0–5.5% gross for a family villa, stress-test net yield after service charges, insurance, and periodic maintenance. Reference context for yields: Knight Frank.

Example C: UAE national, first home > AED 5m

• Price: AED 6,000,000
• Max LTV: 75% → Loan up to AED 4,500,000
• Minimum down payment (25%): AED 1,500,000
• Fees: Compute similarly. Larger ticket sizes increase DLD and agency fees in absolute terms, so liquidity planning matters.

Example D: Off-plan with mortgage

• Price: AED 1,600,000 (off-plan apartment)
• Max LTV: 50% → Loan up to AED 800,000 at mortgage stage
• Minimum down payment: 50% = AED 800,000 (often staged with the developer until handover)
• Tip: Many buyers pursue developer payment plans and only consider a mortgage at handover; ensure you understand the exact payment schedule and when DLD/registration fees are due.

Common pitfalls in Dubai real estate—and how to avoid them

• Underestimating fees: Plan for DLD 4% plus the mortgage registration fee (0.25% of loan) and admin/trustee/valuation costs. Verify fees on the DLD – mortgage registration.
• Misclassifying the loan: Declaring an investment as a first home can backfire; banks assess usage and rental income. Investor loans have stricter LTVs and stress tests.
• Overlooking DBR and stress tests: Banks stress test at higher rates to ensure affordability. Keep total debt burden within 50% of income, per Central Bank regulations.
• Ignoring non-resident constraints: If you are not resident in the UAE, expect more conservative LTVs and documentation requirements.
• Not checking service charges: High service charges can erode net yields. Review community fees and budgets before committing.

How West Gate Dubai helps you get it right

You don’t need to navigate LTV rules, fee schedules, and developer terms alone. West Gate Dubai acts as your transaction partner from pre-approval to handover and leasing.

• Deal sourcing and negotiation: Access a curated selection of ready and off-plan homes across budget ranges, with clear fee breakdowns and timelines. Explore current opportunities in our off-plan projects in Dubai.
• End-to-end management: If you plan to rent out your property, optimize your yield with dedicated property management covering tenant screening, maintenance, renewals, and occupancy strategy.
• Buy-side advisory: We align property choice with your financing plan, desired LTV, and target yield. If you are buying to live in, view options among properties for sale in Dubai. If you intend to hold and rent, we map rent comps and leasing timelines against your cash flow goals.
• Transparent fee planning: You’ll get a line-item estimate for DLD fees, mortgage registration, valuation, trustee, agency, insurance, and contingencies so there are no surprises.

Professionally speaking, we also have many more properties available off-market or coming soon. If you want tailored recommendations, please share your details and a professional agent will contact you via our contact form.

Advanced tips and market context

• Target a defensible LTV: For investors, a lower LTV can improve cash flow resilience if rates rise or vacancy extends. For first homes, an 80% LTV is common (≤ AED 5m) for expats, but consider paying extra if you want lower instalments.
• Stress-test yields: Benchmark gross yields by area and asset type. Recent research indicates apartments often sit around 5–7% gross yields, with villas/townhouses typically a bit lower. Your net yield will be lower after service charges, insurance, and allowance for maintenance and vacancy.
• Sequence your cash: Align your down payment, DLD and trustee fees, valuation, and booking amounts with your bank’s approval timeline. Ensure funds are ready for manager’s cheques where required at the trustee office.
• Consider off-plan incentives: Developers sometimes offer fee waivers or staged payments. Balance incentives against delivery risk, service charge expectations, and your financing route at handover.

Measuring success: KPIs and realistic timelines

• For owner-occupiers:
  • Instalment-to-income ratio (post-purchase DBR)
  • Buffer savings after completion (months of expenses)
  • Rate reset plan (if fixed rate period ends)
• For investors:
  • Net rental yield (after service charges, insurance, maintenance)
  • Occupancy rate and tenant retention
  • Days on market at each leasing cycle
  • Cash-on-cash return after all costs
  • Variance vs. pro forma assumptions

Realistic timelines:

• Mortgage pre-approval: 2–7 business days in many cases, depending on documents.
• Offer to transfer (ready property): Often 2–4 weeks if documentation is clean and stakeholders are responsive.
• Off-plan: Payment schedules span months or years; mortgage (if any) generally activates at or near handover.

Why Partner with West Gate Dubai

• Expert guidance on 2025 LTV and deposit requirements for first homes and investment properties, with clear, conservative cash planning.
• Access to a wide selection of ready and off-plan inventory tailored to your budget and LTV band. Start with our curated off-plan collection and current properties for sale.
• Post-purchase income optimization via hands-on property management so your asset stays occupied, compliant, and performing.

We also have many more properties available than what’s publicly listed. If you’d like us to shortlist units that match your deposit and yield targets, you can fill the form and a professional agent will reach out via our Contact Us page.

FAQs

• What is the minimum down payment for an expat’s first home in Dubai?
  • Typically 20% up to AED 5 million and 30% above AED 5 million, based on an 80% and 70% maximum LTV respectively. Your exact deposit can be higher if your profile or the property’s risk leads the bank to offer a lower LTV.
• How much do I need to put down for an investment property?
  • For expatriates, investment or second homes are usually capped at 60% LTV, implying a 40% down payment. For UAE nationals, the cap is 65% LTV (35% down).
• Are off-plan down payments higher?
  • Yes. If you plan a mortgage for off-plan, the maximum LTV is 50% (50% down). Many buyers rely on developer payment plans pre-handover and consider a mortgage at completion.
• What government fees should I budget for besides the deposit?
  • Budget for the DLD transfer fee (commonly 4% of the purchase price), the mortgage registration fee (0.25% of the loan amount) plus admin, valuation, trustee, and agency fees.
• Do non-residents face different deposit rules?
  • The Central Bank’s LTV caps apply broadly, but many banks set conservative internal LTVs for non-residents, often requiring larger deposits and additional documentation. A general market overview is summarized here: Expatica.
• What rental yields can I expect as an investor?
  • Yields vary by area and property type. Recent research points to apartments often around 5–7% gross, with villas at 4.5–6%. Always underwrite net yields after fees and vacancy.

Call to Action

Whether you’re mapping a 20% first-home deposit or modeling a 40% investment down payment with target yields, West Gate can help you align the right property, financing route, and fee plan. Explore current properties for rent for income comps, browse off-plan opportunities for staged payments, or speak to us about hands-free property management. We also have a lot more properties available than what’s visible online—fill the form on our contact page and a professional agent will contact you to tailor options to your budget and goals.