Starting February 1, 2025, the UAE Central Bank instructed banks to stop financing certain property-related costs as part of mortgages. This means buyers must now pay more cash at the outset. The National
Property buying costs no longer covered by UAE mortgages
In addition to the down payment, buyers must cover these upfront costs out of pocket:
• 4% Dubai Land Department (DLD) registration fee
• 2% real estate agent commission
• Fixed DLD trustee fee (e.g., AED 4,200)
• 0.25% mortgage registration fee on the loan amount
• Title deed issuance charge (typically AED 500) The National
These combined fees — previously financed by banks — typically add 6–7% of the property value to your immediate cash requirement. The National
Example: Total upfront cash needed to buy property in Dubai
For example, on an AED 2 million property, you may now need:
• Down payment (20%) = AED 400,000
• DLD fee (4%) = AED 80,000
• Agent commission (2%) = AED 40,000
• Trustee + registration + title fees = ~AED 5,000
• Total upfront cash needed = ~AED 525,000+
Down payment rules for expat residents in the UAE
• First Property ≤ AED 5 million: minimum 20% down payment
• First Property > AED 5 million: minimum 30% down payment
• Investment / Second Home: lenders often require up to 40% down of the property value
This structure reflects higher financial risk perceived by lenders for additional properties, especially investment units.
Down payment requirements for UAE nationals (citizens)
• First Home ≤ AED 5 million: minimum 15% down payment
• First Home > AED 5 million: minimum 25% down payment
• Second / Investment Property: higher equity required (typically ~35%)
These preferential terms help UAE nationals access homeownership more easily.
Down payment rules for non-resident foreign property buyers
Non-residents typically face stricter requirements with larger minimum deposits — often 35–50% of the property value — though exact terms vary by bank and applicant profile.
Proper financial planning is key, and working with mortgage advisors or banks early can help you understand your specific requirements based on your profile and the type of property you want to buy.