A buyer is purchasing a AED 2 million ready property in Dubai as their first home, planning to finance it with a mortgage.
The Walkthrough
- Check affordability against the loan-to-value cap
For a first property purchase, the UAE Central Bank sets a maximum loan-to-value ratio — run the affordability calculator first to see the maximum a bank is likely to approve given this property value. - Calculate the down payment
Whatever the bank won't finance under the LTV cap becomes your required down payment — due in cash upfront, separate from other transaction fees. - Add the 4% DLD fee
On a AED 2 million property, the Dubai Land Department fee alone adds AED 80,000, payable at transfer, on top of the down payment. - Add agency commission and other transaction fees
Agency commission, trustee office charges and NOC fees stack on top of the DLD fee — run the purchase cost calculator alongside the mortgage calculator to see the complete upfront cash picture. - Get the monthly payment figure
With loan amount, interest rate and term entered, the calculator shows the actual monthly instalment — compare this against your monthly budget, not just the affordability approval.
The Takeaway
On a AED 2 million property, the upfront cash requirement — down payment plus DLD fee plus other transaction costs — is typically far larger than most first-time buyers expect from the listing price alone, which is exactly why checking the full breakdown before house-hunting matters.
Try It With Your Own Numbers
This example used specific figures to make the process concrete, but the same steps apply whatever your actual numbers are. Run the UAE Mortgage Calculator with your own details — free, in under a minute, no sign-up required.
Frequently Asked Questions
Does the down payment percentage change for a second property?
Yes — UAE Central Bank loan-to-value caps are generally stricter for a second or subsequent property purchase compared to a first one.
Is the 4% DLD fee negotiable?
It's a government fee set by the Dubai Land Department, not something negotiated with the seller or agent, so it applies consistently regardless of the specific deal.
Can the down payment be gifted or does it need to come from savings?
Fund source requirements vary by bank — check with your specific lender about acceptable down payment sources as part of their mortgage approval process.
Does an off-plan property have different upfront costs?
Yes — off-plan purchases often have different payment structures and fee timing compared to ready properties, so the same line items apply but the schedule can differ.
How much does the interest rate actually affect the monthly payment?
Significantly — even a small rate difference changes the monthly payment meaningfully over a long mortgage term, which is why comparing actual offers matters more than assuming a standard rate.