How much deposit do you need for a UAE mortgage?
Last updated: · By Aknaz Mortgages, RERA ORN 48584
An expat buying a first home under AED 5,000,000 needs at least 20% of the price in cash, because the loan is capped at 80%. Higher prices, second homes and off-plan need more. The deposit comes from your own funds, and purchase fees are paid on top of it.
Key numbers
| Rule | Value |
|---|---|
| Maximum loan-to-value, expat first home below AED 5,000,000 | 80% |
| Maximum loan-to-value, expat first home at AED 5,000,000 and above | 70% |
| Maximum loan-to-value, UAE national first home below AED 5,000,000 | 85% |
| Maximum loan-to-value, second property | 60% |
| Maximum loan-to-value, off-plan | 50% |
| Maximum loan-to-value, non-residents | 50–65% |
Sources: CBUAE Mortgage Loans Regulation; UAE bank practice (varies by bank). Figures checked on .
What is loan-to-value, and why does it set your deposit?
Loan-to-value (LTV) is the largest share of the property’s price, or of the bank’s valuation if that is lower, that a bank will lend. Your deposit is what remains. At an LTV of 80% the deposit is the other 20%.
The Central Bank sets the limits, and banks apply them with their own conditions. The limit depends on who you are (UAE national, expat or non-resident), whether the property is your first or an additional one, whether it is ready or off-plan, and on the price. For an expat’s first home the limit changes at AED 5,000,000: 80% below it and 70% at or above it.
The limits by buyer and property
| Buyer and property | Price below AED 5,000,000 | Price AED 5,000,000 and above |
|---|---|---|
| Expat, first home | 80% | 70% |
| UAE national, first home | 85% | 75% |
| Second property (first one mortgaged) | 60%, varies by bank | |
| Non-resident | salaried 60–65%, self-employed 50–60% (up to 65% with some banks); varies by bank. | |
| Off-plan | 50% | |
Read the table with the 50% debt-burden ratio in mind. A bank lends the lower of the LTV result and the DBR result, so your salary can still be the limit even where the LTV would allow more. Our guide to the 50% DBR rule explains that second limit.
What counts as the deposit
The deposit is cash from your own funds: savings, the sale of another asset or a gift you can document. Banks look at where the money comes from, and they generally do not accept a deposit that is itself borrowed, for example through a personal loan, because the new repayments would count towards your debt-burden ratio. If part of the money comes from a relative or from abroad, tell your advisor early, so the bank can see the source.
The fees on top of the deposit
The deposit is not the whole cash requirement. Purchase fees are paid on top of it, and your advisor gives you the full cash figure for your purchase before you commit.
Second homes, off-plan and non-residents
A second property is capped at 60% when your first is mortgaged, and the limit varies by bank, so the deposit rises to at least 40%. An off-plan mortgage is capped at 50%, so the buyer funds at least half; see the off-plan page. Non-residents borrow less than residents: Non-residents: salaried 60–65%, self-employed 50–60% (up to 65% with some banks); varies by bank. See the non-resident page.
We work it out for you
You do not need to run these numbers yourself. An Aknaz advisor works out what each bank will lend you, which banks fit your profile and what you will pay, then submits your application to the bank the same day. Get my pre-approval or ask for a call back.
Frequently asked questions
Can I use a personal loan for the deposit?
Banks generally expect the deposit to come from your own funds, and a personal loan taken for it is not what they look for. The repayments would also count towards your 50% debt-burden ratio and reduce the mortgage you can get. Ask us before you borrow anything.
Does the 20% deposit include fees?
No. The 20% is the share of the price that the loan does not cover for an expat's first home below AED 5,000,000. Fees are paid on top of it: the DLD transfer fee, mortgage registration, agency commission, bank processing fee, valuation and trustee office.
What is the deposit for a second property?
When your first property is mortgaged, the loan on a second property is capped at 60%, so the deposit is at least 40% of the price. The limit varies by bank, and the 50% debt-burden ratio applies to both mortgages together.
Is the deposit higher for off-plan?
Yes. The Central Bank caps an off-plan mortgage at 50% of the price, so the buyer funds at least half, compared with at least 20% for an expat's first ready home below AED 5,000,000. Selected developers and projects qualify.
Do UAE nationals need a smaller deposit?
Yes. For a first home the cap is 85% below AED 5,000,000, a deposit of at least 15%, and 75% from AED 5,000,000, a deposit of at least 25%. Expats are capped at 80% and 70% for the same bands.
Sources
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