How much down payment do you need in the UAE?
The UAE Central Bank caps how much a bank can lend against a property's value. An expatriate buying a first, ready home worth up to AED 5 million can borrow up to 80%, so the minimum down payment is 20%; above AED 5 million it is 30%. UAE nationals can borrow up to 85% (15% down) up to AED 5 million and 75% above. For a second or investment property the limit drops to 60% for expatriates and 65% for nationals, and off-plan properties are capped at 50% for everyone. The calculator warns you when your down payment is below these limits.
The upfront costs people forget
The down payment is not the only cash you need. In Dubai, the Land Department charges a 4% transfer fee on the price, plus 0.25% of the loan to register the mortgage. Most buyers also pay a 2% agent commission, and banks charge an arrangement fee of up to 1% of the loan; VAT at 5% applies to both. On a AED 1.5 million flat with 20% down that is roughly AED 107,000 on top of the AED 300,000 down payment. Fees differ in other emirates, so every rate in the calculator can be changed.
Interest rates, fixed periods and EIBOR
Most UAE mortgages are fixed for the first one to five years and then move to a variable rate, usually three-month EIBOR plus a margin. This calculator uses one rate for the whole term, so treat the result as a guide: try a higher rate to see what happens if rates rise after the fixed period. Even a small change matters over 25 years. On a AED 1.2 million loan, going from 4% to 5% adds about AED 680 to the monthly payment and around AED 204,000 in total interest.
Debt burden ratio and what banks will lend
Central Bank rules limit all your monthly debt payments, including car loans and credit card minimums, to 50% of your monthly income. Add your income to see how much of it the mortgage would take. If the share is above 50%, a bank is likely to offer a smaller loan or a longer term. Banks also look at age: most lend to salaried expatriates only until age 65, which can shorten the term you are offered. Use the year-by-year schedule to see how fast the balance falls.