Dubai Mortgage Down Payment and LTV: How Much Cash You Need Upfront

The Short Answer

What LTV Means

What Changes the Amount a Bank Will Lend

The Cash You Need Besides the Down Payment

A Simple Way to Add It Up

Mistakes to Avoid

Mortgage or Cash?

Talk to Banke

Dubai Real Estate Insights · Mortgages Dubai Mortgage Down Payment and LTV: How Much Cash You Need Upfront A Dubai mortgage does not cover the whole price. The bank lends a share of the property value, called the loan-to-value ratio (LTV), and you pay the rest from your own funds, along with several costs that sit on top of the price. This Banke UAE guide

explains how LTV works, which factors change the share a bank will lend, and how to add up the cash you need on the day, so the number in your head matches the number in the bank's offer. The Short Answer Your down payment is the property price minus the loan. If a bank lends 80% of the value, you fund the other 20%. In

practice you need more than that 20%, because the transfer fee, the agent's commission, mortgage registration and bank charges are paid in addition. The maximum LTV is not one fixed number for everyone. The UAE Central Bank sets limits, and each bank then applies its own policy. The limit you get depends on your residency status, the value of the property, whether it is your

first purchase, and whether the property is ready or off-plan. Ask the bank for its current limit for your exact case, in writing. What LTV Means LTV is the loan divided by the value. The value that counts is the lower of the purchase price and the bank's valuation. If you agree to pay AED 1,500,000 and the bank's valuer says AED 1,450,000, the bank

lends against AED 1,450,000, and you cover the gap. That is why the valuation matters. We explain how it works in Banke guide: Property Valuation in Dubai: How Valuers Reach a Figure . Treat the example above as an illustration of the method, not as a rate or a quote. What Changes the Amount a Bank Will Lend Residency status. UAE residents and non-residents are

often treated differently, and non-residents usually face a lower LTV. Property value. Limits can step down for higher-value properties. First property or later. A second or third mortgaged property is commonly treated more cautiously than a first. Ready or off-plan. Banks often lend differently on completed property than on property still under construction, and an off-plan loan may be released in stages. Your income and

debts. The bank also tests whether the monthly payment fits your income. A high LTV on paper is not useful if the repayment test fails. The Cash You Need Besides the Down Payment Many buyers budget for the down payment and then find the real figure is higher. Plan for these items as well: Dubai Land Department transfer fee. Paid on registration. See Banke guide:

the DLD 4% fee explained for who pays and how it is usually handled. Agent commission , if an agent is involved. Who pays should be agreed in writing before you sign. Mortgage registration fee at the Land Department and the bank's own arrangement and valuation fees. Trustee office or administration fees charged at transfer. Insurance. Banks usually require life and property cover. See Banke

guide: what buyers are asked to take . A cash buffer for moving, furnishing and the first service charge bill. We deliberately do not quote percentages for these fees here. They are set by the Land Department and each bank, and can change. Ask for the current schedule and add it to your budget. A Simple Way to Add It Up Use this worked structure

with your own numbers: (1) agreed price; (2) lower of price and valuation; (3) maximum loan = that value times the bank's LTV; (4) down payment = price minus loan; (5) add every fee listed above; (6) add a buffer. The total of lines 4 to 6 is the cash you must have available, ideally already in your account when the bank asks for proof

of funds. Mistakes to Avoid Assuming the LTV you read online applies to you. Get it from the bank, for your case. Counting only the down payment and forgetting fees. Paying a reservation deposit before you have a mortgage pre-approval in writing. See Banke guide: Dubai Mortgage Pre-Approval . Borrowing the down payment elsewhere without telling the bank. Lenders usually ask where your funds came

from. Ignoring the interest-rate type. A fixed and a variable loan behave differently. See Banke guide: fixed vs variable mortgages . Mortgage or Cash? A bigger down payment means a smaller loan and lower monthly payments, but less cash left for other uses. A smaller down payment keeps cash free but increases debt and interest. There is no universal answer. Our comparison, Banke guide: Mortgage