Expat Mortgage in Dubai: How Much Deposit You Need
Yes, expats can get a mortgage in Dubai, both as UAE residents and, with fewer lenders, as non-residents. For a resident expat buying a first home worth AED 5 million or less, banks can usually lend up to 80% of the value, so the minimum deposit is 20%. Above AED 5 million, on second or investment homes, and for non-residents, the deposit is higher, often 35% to 50%. On top of the deposit, budget roughly 6% to 8% of the price for fees.
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This is general information, not mortgage or financial advice. UAE Central Bank rules and bank policies change; check the current terms with your bank or a licensed broker before you commit.
How much you can borrow
The UAE Central Bank sets maximum loan-to-value (LTV) limits. After a 2020 change, first-time buyers can borrow 5 points more than the original 2013 limits. Typical figures quoted by lenders today:
| Buyer and property | Typical max LTV | Minimum deposit | |---|---|---| | Resident expat, first home, AED 5m or less | 80% | 20% | | Resident expat, first home, over AED 5m | 65% to 70% | 30% to 35% | | Resident expat, second or investment home | 60% | 40% | | Non-resident | Often 50% to 60% | 40% to 50% | | Off-plan (bank policy) | Often 50% or not offered | 50%+ |
Banks base LTV on the lower of the price and their own valuation. If the valuation comes in low, your deposit goes up.
Other limits that decide the answer
- Debt burden ratio (DBR): all your monthly debt payments, including the new mortgage, must not exceed 50% of your monthly income.
- Maximum term: 25 years under Central Bank rules.
- Age: lenders set a maximum age at the end of the loan, usually around 65 for salaried expats. Check your bank's limit.
- Income and residency: banks set minimum salaries, length of employment and acceptable employers or business histories.
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Worked example (example numbers)
You are a resident expat buying your first apartment for AED 1,500,000 with an 80% mortgage.
- Loan: 80% x 1,500,000 = AED 1,200,000
- Deposit: 20% = AED 300,000
Purchase costs:
- DLD transfer fee: 4% x 1,500,000 = AED 60,000
- DLD admin fee: AED 580
- Registration trustee fee: AED 4,000 + 5% VAT = AED 4,200
- Agent commission: 2% + 5% VAT = AED 31,500
- Mortgage registration: 0.25% x 1,200,000 + AED 290 = AED 3,290
- Bank arrangement fee (example 1%): AED 12,000
Fees total AED 111,570. Cash needed: 300,000 + 111,570 = AED 411,570, or about 27% of the price. Add a valuation fee and life and property insurance.
Monthly payment at an example 4.5% rate over 25 years: about AED 6,670. With no other debts, the 50% DBR means you would need at least about AED 13,340 a month in income, and banks also stress-test for higher rates.
Step by step
- Get a pre-approval. It tells you your real budget and is usually valid for a limited period.
- Compare fixed and variable deals. Look at the rate after any fixed period, early settlement fees and life insurance costs.
- Agree a price and sign the sale agreement (commonly Form F in Dubai) with a deposit cheque.
- Bank valuation and final offer. Read the offer letter fully.
- Transfer at a DLD trustee office. The bank pays the seller, you pay fees, and the mortgage is registered.
Common mistakes
- Saving only the 20% deposit and forgetting about 7% in fees.
- Assuming an off-plan unit can be financed like a ready one.
- Ignoring the DBR when you have car loans or credit card limits. Banks often count card limits, not just balances.
- Choosing a low teaser rate without checking the follow-on rate.
- Stretching to the maximum term without checking the bank's age limit.
The full financing section, plus the Dubai buying process and cost tables, is in Real Estate: Everything You Need to Know.
FAQ
Can a non-resident get a mortgage in Dubai?
Yes, some banks lend to non-residents, usually at lower LTVs and with stricter income checks. Expect a deposit of around 40% to 50%.
Can I include the 4% DLD fee in the mortgage?
Generally the fees are paid in cash. Some lenders have offered to finance part of the fees within the overall cap, so ask.
Does the AED 5 million line use the price or the valuation?
Banks use the lower of the purchase price and their valuation for LTV. Ask your bank how it applies the threshold.
More playbooks on other topics: https://www.asendify.co/books/
Everything You Need to Know. £1450.00 one-time, instant download.