Whether you’re a UAE national, an expat resident, or a foreign investor, the answer depends on Central Bank regulations and Emirate rules that govern mortgage financing.
A down payment is the portion of the property price you must pay upfront when buying with mortgage financing. The UAE’s Central Bank mortgage regulations set clear requirements that lenders must enforce, meaning this component is mandatory — and it cannot be rolled entirely into your loan.
Down payments affect:
· Loan-to-Value (LTV) — how much the bank will finance.
· Monthly instalments — smaller loans mean lower monthly payments.
· Mortgage eligibility — meeting the minimum equity requirement is essential before banks approve a loan.
Down payment rules for expat residents
· 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 payments 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 for non-resident foreign 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