Down Payment
The down payment is the initial cash contribution by the buyer toward property purchase, representing the difference between purchase price and mortgage amount, typically 20-35% in UAE.
| Down Payment Calculation | Formula |
| Purchase price | AED 2,000,000 |
| Maximum LTV (75%) | AED 1,500,000 |
| Required down payment | AED 500,000 (25%) |
| Plus closing costs | AED 140,000 (7%) |
| Total cash required | AED 640,000 |
| Down Payment by LTV | Property AED 2M |
| 80% LTV | AED 400,000 (20%) |
| 75% LTV | AED 500,000 (25%) |
| 65% LTV | AED 700,000 (35%) |
| 50% LTV | AED 1,000,000 (50%) |
| Source Considerations | Acceptable |
| Savings | Primary source |
| Gift | With declaration letter |
| Asset sale | Documented proceeds |
| Equity release | From existing property |
| Loan | Generally not acceptable for residential |
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