How Much Deposit Is Required for a Mortgage in Dubai?

How Much Deposit Do You Need for a Mortgage?

The deposit requirements for a mortgage in Dubai vary depending on a few factors, such as whether you are an expatriate, UAE National or non-resident, as well as the type of property that you are buying. 

In Dubai, the UAE Central Bank has set specific requirements for how much deposit is required for a mortgage. These requirements were introduced to give additional stability to the real estate market, reducing speculation and ensuring that buyers have sufficient equity in the property and do not become overleveraged. 

The mortgage deposit requirements are: 

• Expatriates: If you are an expat looking to purchase a property in Dubai, you will need a minimum of 20% deposit for properties valued under AED 5 million. For properties over AED 5 million, the minimum deposit is 30%.

• UAE Nationals: For Emirati citizens, the required deposit is slightly lower. For properties under AED 5 million, the minimum deposit is 15%, while properties valued over AED 5 million will require a 25% deposit.

• Non Residents: Whilst non-residents of Dubai can qualify for a mortgage, a higher deposit of 35%-40% of the purchase price is required.  

Typical Deposit Requirements by Mortgage Type

Mortgage deposit requirements can also vary depending on the type of mortgage that you choose. In Dubai, there are a number of different mortgages available each with distinct structures and deposit requirements. 

• Fixed-rate mortgages: With a fixed-rate mortgage, the interest rate remains the same for a certain period, usually 1-5 years. This is popular with buyers who prefer predictable payments. The deposit requirements for fixed-rate mortgages is 20-30% for expatriates and 15-25% for UAE Nationals, depending on the property’s value.

• Variable-rate mortgages: Deciding between fixed rate vs variable rate mortgage is a big decision. With variable-rate mortgages, the interest rate fluctuates with changes in the market. This can result in lower interest rates when conditions are favorable, but could also mean higher repayments if market conditions worsen. The deposit requirements for variable-rate mortgages are the same as fixed-rate mortgages

• Off-plan mortgages: off-plan mortgages, which are available with limited banks and select developers, have a higher deposit requirement. With off-plan mortgages, 50% of the property price must have been paid by the buyer, before the bank can finance the remainder.

• Investment mortgages: generally, the deposit requirements for a mortgage are the same, whether you are buying a property for end use or as an investment in Dubai.

Factors Influencing Deposit Requirements

There are several factors which can influence how much deposit is required for a mortgage. Whether you are considering how much deposit you need for a first time buyer mortgage, or an investment property, understanding these factors can help you prepare for the financial commitment of buying a property. 

• Property Value: The price of the property you're purchasing is a key factor influencing the deposit requirement. As mentioned previously, properties that are priced over AED 5 million have a higher percentage deposit required. 

• Nationality: Whether you're an expatriate or a UAE national significantly affects the deposit percentage, with expats needing a higher deposit than citizens.

• Credit History: Your personal credit history will also impact the amount of deposit you need. Buyers with a good credit history may find they are eligible for more favorable deposit terms, while banks may require those with a bad credit score to have a higher deposit. 

• Lender Policies: Different banks and lenders may have varying policies on deposit requirements.Comparing mortgage options from different banks, particularly by using an experienced mortgage broker, can help you find the most suitable product and deposit requirements for your situation. 

How Much Should You Aim to Save for a Deposit?

When buying a property in Dubai, it's crucial to set a realistic savings goal for your deposit. As a general rule, you should save at least 20% of the property’s value for the mortgage deposit. 

Here's a quick guide to the minimum deposit required for expats and UAE Nationals to buy a property, based upon various property prices.

You should also save for the other costs of buying a property, such as the 4% Dubai Land Department (DLD) registration fee and the agency commission. In total, these costs can total about 6-8% of the purchase price.

In the past, it was often possible to include some of these fees within the mortgage, to reduce the upfront cost. However, following an update in regulations in February 2025, this is no longer an option.  

Benefits of a Larger Deposit

Whilst it's important to understand how much deposit is required for a mortgage as a minimum, there are a number of potential benefits to saving for a larger mortgage deposit. These include: 

• Increased Equity: By paying a larger deposit, you’ll own a greater share of your property from the outset. This can give you more financial security and a lower risk in the event that property prices decrease. 

• Smaller Monthly Payments: A larger deposit means you’ll need to borrow less, which in turn reduces your monthly mortgage payments. This can give you greater flexibility in managing your finances.

• Higher Loan Approval Chances: A larger deposit demonstrates to lenders that you are financially responsible and less of a risk, potentially improving your chances of mortgage approval.

Can You Buy a Property with Zero Deposit in Dubai?

While the idea of buying a home without any upfront payment sounds appealing, the reality is that zero deposit property options are limited in Dubai.

UAE Central Bank regulations require buyers to contribute a minimum down payment of 15% (for UAE Nationals) and 20% (for UAE Residents) for properties under AED 5 million.

Some off-plan developers may market “0% down” offers, but these are often tied to inflated prices or come from less-established developers. Even if technically possible, these schemes carry higher risks and may not be the smartest financial choice.

Learn more about the pros, cons, and realities of zero down payment properties in Dubai.

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Conclusion

Understanding how much deposit is required for a mortgage in Dubai is a crucial part of buying a property. For expats, the minimum deposit typically ranges from 20-30%, while UAE Nationals enjoy slightly lower deposit requirements of 15-25%. Various factors, such as the property's value and its type (whether residential or commercial and ready or off-plan), can impact the deposit requirements.

By understanding the mortgage deposit requirements, you’ll be well-equipped to navigate Dubai’s thriving real estate market and make informed decisions about buying a property.