Buyer guide
How much cash you actually need to put down on a Dubai property, per buyer profile + property type. CBUAE LTV caps, payment-plan timelines, four funding paths, and the closing costs that sit on top of the down-payment.
The Central Bank caps how much a lender can finance. Minimum down-payment = 100% minus max LTV. Lenders may apply stricter internal limits, but cannot exceed these.
| Buyer profile | Property band | Max LTV | Min down | Note |
|---|---|---|---|---|
| UAE national, first home | ≤ AED 5M | 85% | 15% | Highest available LTV. Drops to 75% above AED 5M. |
| UAE national, first home | > AED 5M | 75% | 25% | Same buyer, higher band. Lender often requires income evidence ≥ AED 40k / month. |
| Expat resident, first home | ≤ AED 5M | 80% | 20% | Most common profile. UAE residence visa + Emirates ID required. |
| Expat resident, first home | > AED 5M | 70% | 30% | Higher-value expat first home. Some lenders require 6 months bank statements. |
| Expat resident, second+ home | any | 65% | 35% | Investment property tier. DBR check is stricter — existing mortgage adds to debt service. |
| Non-resident buyer | any | 50% | 50% | Limited lender pool. UAE Central Bank cap is 50% — some lenders go lower. |
| Off-plan (any profile) | any | 50% | 50% | CBUAE caps off-plan mortgage at 50% regardless of buyer profile. Payment plan covers the rest. |
| Commercial property | any | 70% | 30% | Plus 5% VAT on the purchase price (residential is VAT-exempt). |
Already-titled property. Title transfers same-day at DLD trustee office once funds are in.
Reservation deposit
Holds the property while MoU is drafted. Refundable until MoU signing in most cases.
MoU deposit
Earnest deposit at MoU (Form F) signing. Held by broker or via trust account. Non-refundable if buyer pulls out.
NOC + DLD fees
Developer NOC (AED 1,500-5,000) + DLD transfer fee (4%) + agency fees (typically 2%).
Mortgage drawdown
Lender releases funds at DLD transfer appointment. Buyer brings the residual cash component.
Title transfer
Title issued same-day at DLD trustee office. Keys handed over. Service-charge proration settled.
Pre-construction or under-build property. Cash is staged against RERA Stage Certificates. Some developers extend post-handover plans up to 7 years.
Booking deposit
Reservation deposit to developer. Token amount converted to down-payment on SPA signing.
SPA + Oqood
Sale and Purchase Agreement + DLD Oqood (interim registration). Brings total to 20-30%.
Construction milestones
Linked to RERA Stage Certificates. Typical: 10% at 20% build, 10% at 40%, 10% at 60%, 10% at 80%.
Handover payment
Final cash + mortgage drawdown. Some developers run post-handover plans (24-60 months at 1% / month).
DLD transfer
4% DLD transfer fee + title-deed issuance. Some developers absorb this as an incentive.
Each path has a different cash-vs-leverage profile. Choose based on income stability, DBR headroom, and time-horizon.
Buyers prioritising speed (close in 5-7 days), negotiation leverage, and zero monthly carry. Required for non-residents above the 50% LTV cap.
Trade-off: Opportunity cost of capital tied up vs. mortgage-leveraged returns. No tax shield (UAE has no income tax anyway).
Resident buyers with 3+ months UAE employment, AED 15k+ monthly income, DBR ≤ 50%. Tenure up to 25 years (resident) or 65 years age cap.
Trade-off: Lender processing 1% + valuation AED 2,500-3,500 + life insurance compulsory (≈ 0.5% / year of outstanding).
Shariah-compliant alternative. Same LTV caps. Bank buys then leases to you (Ijara) or sells at a markup (Murabaha) with deferred payments.
Trade-off: Profit rate typically 25-50 bps above conventional rate for equivalent tenure. Early-settlement fee structure differs.
Off-plan buyers staging cash over 24-60 months. Some developers offer 80/20 or 70/30 post-handover plans extending to 5-7 years.
Trade-off: Sub-sale restrictions until 30-40% paid. Late-payment penalties (typically 5-10% of milestone). Developer counterparty risk.
Standard cost-stack. Resident buyers with a mortgage on a typical AED 2M resale should budget 7-8% of price as closing costs on top of the 20% down-payment.
| Cost line | Amount | Who pays |
|---|---|---|
| DLD transfer fee | 4% of price | Buyer (commonly negotiated) |
| DLD admin fee | AED 580 | Buyer |
| Title-deed issuance | AED 540 | Buyer |
| Agency commission | 2% + 5% VAT | Buyer (resale) |
| NOC fee (off-plan resale) | AED 1,500 - 5,000 | Seller normally; negotiable |
| Mortgage registration | 0.25% of loan | Buyer (if mortgaged) |
| Lender processing | 1% of loan + VAT | Buyer (if mortgaged) |
| Property valuation | AED 2,500 - 3,500 | Buyer (if mortgaged) |
| Life insurance (annual) | ≈ 0.5% of outstanding | Buyer (if mortgaged) |
| Conveyancing (optional) | AED 5,000 - 12,000 | Buyer (recommended) |
For a worked example on a specific property value, see the closing-cost calculator.