To buy a house in Dubai, the required deposit depends on your nationality: UAE nationals typically need to put down 20% of the purchase price, while expats (foreigners) are required to provide a deposit of at least 25%.
Understanding Mortgage Deposit Requirements in Dubai
When planning to purchase property in Dubai, one of the primary considerations is the required upfront deposit. The amount you need to pay as a deposit is largely determined by your residency status in the UAE, with different requirements for UAE citizens and expatriates.
Banks in Dubai extend mortgage loan facilities to foreigners, though the terms, conditions, and interest rates for these loans can vary significantly compared to those offered to UAE nationals. This distinction is particularly evident in the minimum deposit requirements.
Deposit Requirements at a Glance
| Residency Status | Minimum Deposit Required |
|---|---|
| UAE Nationals | 20% of the purchase price |
| Expats (Foreigners) | At least 25% of the purchase price |
Deposit for UAE Nationals
For citizens of the United Arab Emirates, the process of securing a mortgage for a property in Dubai generally involves a lower initial deposit. UAE nationals are typically required to make a down payment equivalent to 20% of the property's total purchase price. This means that banks will finance up to 80% of the property value, with the remaining 20% being the buyer's upfront contribution.
Deposit for Expats (Foreigners)
If you are an expatriate looking to buy property in Dubai, the minimum deposit requirement is higher than that for UAE nationals. As an expat, you will need to provide a deposit of at least 25% of the property's purchase price. This implies that while 25% is the baseline, some lenders or specific property types might require a higher percentage. For instance, if you are purchasing a property valued at AED 2,000,000, your minimum upfront deposit would be AED 500,000. The remaining portion of the property's value (up to 75%) can be covered by a mortgage loan from a Dubai-based bank.
This higher deposit for expatriates reflects the differing conditions and requirements that apply to non-citizens when obtaining property financing in the UAE. It's crucial for prospective expat buyers to factor this larger upfront cost into their financial planning.
