Buyer Guides · 6 min read
How Much Deposit Do You Need to Buy in Dubai?
The EQT Private Office · RERA-registered brokerage · Published August 26, 2026 · Updated September 24, 2026
To buy property in Dubai you need a deposit of 10-20% for off-plan, and at least 20% down for a resident mortgage on a ready home (40% or more for non-residents), plus the 4% Dubai Land Department (DLD) transfer fee. Cash buyers of ready property pay a 10% deposit when they sign the Memorandum of Understanding (MOU, or Form F). What matters most is your total upfront cash: on a ready home, budget for the down payment plus roughly 6-7% in fees and charges. Below you will find each buyer type, the Central Bank loan-to-value rules and worked examples, so you know what to have ready.
Key takeaways
- •Off-plan: developers ask for a 10-20% down payment on booking, then instalments to handover.
- •Cash buyers of ready property: expect a 10% deposit on signing the MOU (Form F), balance at transfer.
- •Resident mortgage: minimum 20% down (up to 80% LTV) on homes under AED 5M; non-residents often 40% or more.
- •Above AED 5M or a second home: the Central Bank requires a larger deposit and lower LTV.
- •Beyond the deposit, budget about 6-7% for the 4% DLD fee, agency commission plus VAT, and mortgage and trustee fees.
- •Figures are indicative; confirm current Central Bank rules and your lender's terms before you commit.
The short answer: deposit by buyer type
Your deposit depends on how you buy. There are three common routes.
Cash buyer of a ready (secondary market) home: you pay a booking or MOU deposit, most commonly 10% of the price, when you sign the sale agreement. You settle the balance at transfer.
Mortgage buyer of a ready home: the Central Bank of the UAE caps how much a bank can lend, so the loan-to-value (LTV) limit sets your down payment. Residents put down at least 20%; non-residents put down more.
Off-plan buyer (buying from the developer): you pay a down payment of 10-20%, then follow the developer's payment plan in instalments up to handover.
On every route, the deposit is only part of the cash you need on day one. Transfer fees and other costs, covered further down, come on top, and you pay them from your own funds, not the loan.
Cash buyers of ready property
Without a mortgage, buying a completed home is fast and the deposit structure is simple.
Once you agree a price, both parties sign a Memorandum of Understanding (the standard RERA contract, also called Form F) through the Dubai REST system, and the buyer pays a 10% deposit. The registration trustee or the agent holds it, not the seller, which protects both sides.
That 10% secures the property and commits both parties. You then book the transfer appointment at a registered trustee office, pay the remaining balance and the fees, and the title deed is issued in your name.
Practical points:
- •The 10% deposit is common practice but negotiable; on higher-value or off-market deals the figure and terms can be tailored.
- •If the buyer pulls out without a valid contractual reason, the deposit is at risk, so sign only once you are committed.
- •Cash purchases can complete in a few weeks, since there is no mortgage approval to wait for.
- •Even as a cash buyer, keep the DLD and agency fees ready on top of the price; they are due at transfer.
Mortgage buyers and Central Bank LTV rules
If you borrow, the Central Bank of the UAE sets the maximum loan-to-value, and whatever the bank will not lend becomes your down payment. These are the widely applied benchmarks.
UAE residents (expats) buying a first home under AED 5 million can borrow up to 80% LTV, so the minimum deposit is 20%. For a first home above AED 5 million, the cap drops to around 70% LTV, meaning roughly 30% or more down.
UAE nationals get slightly higher limits, often up to 85% LTV on a first home under AED 5 million, so around a 15% deposit.
Non-residents buying from overseas get less leverage. Many banks lend around 50-60% LTV to non-residents, so plan for a 40-50% deposit depending on the lender, the property and your profile.
Second and subsequent properties need a bigger deposit for everyone, with LTV commonly capped near 60-65%, so budget for 35-40% down.
The Central Bank rules make two more points clear: the deposit must come from your own funds and cannot itself be borrowed, and the loan does not cover the DLD and associated fees.
Lender appetite varies, so the deposit a bank asks of you can differ from these benchmarks. Get a mortgage pre-approval early and you will know your real number before you start viewing.
Off-plan: developer payment plans
Buying off-plan (directly from a developer before or during construction) works differently. You follow a staged payment plan set by the developer in place of one large deposit and a mortgage.
The down payment on booking is 10-20% of the price. After that, you pay instalments tied to construction milestones or a fixed calendar, up to handover. Many plans have you pay a large share by completion, with the rest due on handover, and some developers now offer post-handover plans that let you keep paying for a year or more after you move in.
If you want to spread the cost, off-plan can mean a lower initial outlay than a mortgage deposit on a comparable ready home.
Keep these points in mind:
- •The 4% DLD registration fee still applies to off-plan and is paid early, at or soon after booking.
- •Payment plans vary widely between developers and projects, so compare the schedule, not just the headline price.
- •You can often arrange a mortgage later to cover the handover payment, subject to the bank's rules at that time.
- •You reserve the unit first with a booking form and a small reservation fee; the formal Sale and Purchase Agreement (SPA) follows.
The extra upfront cash beyond the deposit
Every buyer needs extra cash at transfer, paid from your own pocket, not the mortgage. As a rule of thumb, budget around 6-7% of the price for the items below.
DLD transfer fee: 4% of the purchase price, paid to the Dubai Land Department, plus a small fixed admin fee. This is the largest add-on and applies to nearly every purchase.
Agency commission: 2% of the price plus 5% VAT on that commission.
Mortgage registration fee (if you borrow): about 0.25% of the loan amount, plus a small admin fee, paid to the DLD.
Trustee (transfer) office fee: a fixed charge, commonly around AED 4,000 (plus VAT) for properties above AED 500,000, paid at the transfer appointment.
Smaller items can include bank arrangement or valuation fees on a mortgage, a No Objection Certificate (NOC) fee from the developer, and the first service-charge payment. None is large on its own, but together they add up.
On a ready home bought with a mortgage, your day-one cash is the down payment plus roughly 6-7% in fees. A 20% deposit really means having close to 26-27% of the price available.
Worked examples and tips
The examples below are indicative, with fees rounded for clarity.
Example 1, resident mortgage on a ready AED 2,000,000 apartment: the 20% deposit is AED 400,000, the 4% DLD fee is AED 80,000, agency commission at 2% plus VAT is about AED 42,000, and mortgage plus trustee fees add roughly AED 9,000. Total upfront is around AED 531,000, of which AED 400,000 is the deposit.
Example 2, cash purchase of a ready AED 5,000,000 villa: the 10% MOU deposit on signing is AED 500,000. At transfer you pay the AED 4,500,000 balance, the 4% DLD fee of AED 200,000 and agency commission of about AED 105,000. You need the full price plus roughly AED 305,000 in fees.
Example 3, off-plan AED 3,000,000 apartment on a 20% down plan: AED 600,000 down payment on booking, the 4% DLD fee of AED 120,000 paid early, and the remaining 80% spread over the construction schedule to handover.
Tips:
- •Get a mortgage pre-approval before you offer, so you know your exact deposit and can negotiate as a ready buyer.
- •Keep the DLD and agency fees in a separate pot; do not spend your fee budget on a bigger deposit.
- •Non-residents should compare several banks; LTV and rates for overseas buyers vary more than for residents.
- •On off-plan, weigh a lower entry payment against the total plan; a longer plan is not always cheaper overall.
- •Ask us for an itemised cost sheet for any specific property before you commit, so nothing surprises you at transfer.
Frequently asked
What is the minimum deposit to buy property in Dubai?+
For a resident buying a ready home under AED 5 million with a mortgage, the minimum is a 20% down payment (up to 80% LTV). Off-plan buyers can often start with a 10% down payment on a developer plan. The 4% DLD fee and other costs sit on top of the deposit.
How much deposit do non-residents need in Dubai?+
Non-residents buying with a mortgage need a larger deposit than residents, commonly 40-50%, because many banks cap non-resident lending around 50-60% LTV. Cash buyers avoid this and pay a 10% deposit on signing the MOU. The exact figure depends on the lender and property.
Is the deposit refundable if the deal falls through?+
That depends on the contract. On a ready-home MOU, the buyer's 10% deposit is at risk if they withdraw without a valid contractual reason, and is returned if the seller defaults. Terms are negotiable, so read the agreement carefully and take advice before signing.
Can I use the mortgage to cover the DLD and agency fees?+
No. Under Central Bank rules the deposit and the transfer costs must come from your own funds; the loan covers only the agreed loan-to-value portion of the price. Budget the 4% DLD fee, agency commission plus VAT, and mortgage and trustee fees as separate cash on top of your deposit.
How much total cash do I need on top of the deposit?+
Plan for roughly 6-7% of the purchase price in fees: 4% for the DLD transfer, about 2% agency commission plus 5% VAT on it, around 0.25% mortgage registration if you borrow, and a fixed trustee fee. A 20% deposit realistically means having close to 26-27% of the price available on day one.
Is the deposit lower for off-plan than for a ready home?+
Often, yes. Off-plan down payments start at 10-20%, with the rest spread over a developer payment plan to handover, so the initial outlay can be lower than a 20-25% mortgage deposit on a comparable ready home. The 4% DLD fee still applies and is paid early.
