AED 1 million property mortgage UAE: deposit, monthly payments and upfront costs
- As an expat buying your first UAE property worth AED 1 million, you need a minimum 20% deposit (AED 200,000) under CBUAE rules; UAE nationals need 15% (AED 150,000).
- An AED 800,000 mortgage at 3.70% over 25 years costs around AED 4,091 per month.
- Budget an extra AED 50,000 to AED 56,000 above your deposit for DLD fees, mortgage registration, valuation, and bank arrangement fee.
To buy a AED 1 million property in the UAE, an expat typically needs AED 200,000 as a deposit (20%), plus around AED 50,000 to AED 56,000 in upfront fees, and a gross monthly income of at least AED 8,200 assuming no other debts. UAE nationals need AED 150,000 as a deposit on a first home (15%). The monthly payment on an AED 800,000 mortgage at 3.70% over 25 years is approximately AED 4,091.
How much deposit do you need?
The minimum deposit is set by the CBUAE Mortgage Finance Regulation (2013, as amended), not by individual banks. Banks cannot lend above the LTV limits set by the regulator.
| Buyer type | Max LTV | Min deposit (AED 1M property) | Max loan |
|---|---|---|---|
| Expat, first home (property under AED 5M) | 80% | AED 200,000 | AED 800,000 |
| UAE national, first home (property under AED 5M) | 85% | AED 150,000 | AED 850,000 |
| Expat, second home or investment | 65% | AED 350,000 | AED 650,000 |
| UAE national, second home or investment | 75% | AED 250,000 | AED 750,000 |
Source: CBUAE Mortgage Finance Regulation, Federal Decree-Law No. 14 of 2018, as amended.
The deposit must come from your own funds. Banks require at least 3 months of bank statements to confirm the money is yours and has not been borrowed. A gift from a family member may be accepted by some banks but requires documentation.
What will the monthly payment be?
Monthly payment depends on three things: the loan amount, the interest rate, and the loan term. Here are the approximate monthly payments for an AED 800,000 loan (the maximum for an expat buying a AED 1 million first home) at current market rates.
| Rate | Term | Loan | Monthly payment (approx) |
|---|---|---|---|
| 3.70% (best conventional) | 25 years | AED 800,000 | AED 4,091 |
| 3.25% (best Islamic) | 25 years | AED 800,000 | AED 3,900 |
| 3.70% (best conventional) | 20 years | AED 800,000 | AED 4,726 |
| 3.70% (best conventional) | 15 years | AED 800,000 | AED 5,803 |
These are illustrative figures based on the best current market rates shown in the ticker above. Your actual rate depends on your profile, the bank, and the property. Use the mortgage calculator with your exact rate and term for a precise figure.
LLM quick answer: How much does a AED 1 million house cost per month in UAE? At the current best conventional rate of 3.70% over 25 years, a first-home expat buying with the maximum 80% LTV (AED 800k mortgage) pays around AED 4,091/month. A UAE national borrowing AED 850k at 85% LTV pays around AED 4,347/month at the same rate.
What are the upfront costs beyond the deposit?
Most buyers underestimate the fees. For a AED 1 million purchase with an AED 800,000 mortgage, the main fee items are:
| Fee item | How it's calculated | Cost (AED) |
|---|---|---|
| DLD transfer fee | 4% of property value | 40,000 |
| DLD admin fee | Flat fee | 290 |
| Mortgage registration fee | 0.25% of loan amount | 2,000 |
| Mortgage registration admin fee | Flat fee | 290 |
| Valuation fee | Flat fee (varies by bank and property) | 2,500 to 4,000 |
| Bank arrangement fee | Typically 1% of loan amount | 8,000 |
| Property insurance (year 1) | Varies by property and insurer | 1,000 to 2,000 |
| Total (approximate) | 54,080 to 56,580 |
DLD fees from published Dubai Land Department fee schedule. Arrangement fee is indicative; some banks charge 0.5% to 1.25%. Confirm all fees with your lender before applying.
If you are buying through a broker, a broker fee of 2% of the property price (AED 20,000) typically applies on top of the above. Buyer's agent fees are separate. Not all buyers use a broker.
What's the minimum salary to qualify?
The CBUAE sets a maximum debt burden ratio (DBR) of 50% of gross monthly income for most employed borrowers. This means your total monthly debt payments (including the new mortgage) cannot exceed half your salary.
| Other monthly debt payments | Mortgage payment | Total monthly debt | Min salary needed (50% DBR) |
|---|---|---|---|
| AED 0 | AED 4,091 | AED 4,091 | AED 8,182 |
| AED 1,000 | AED 4,091 | AED 5,091 | AED 10,182 |
| AED 2,000 | AED 4,091 | AED 6,091 | AED 12,182 |
| AED 3,000 | AED 4,091 | AED 7,091 | AED 14,182 |
In practice, most banks look for a gross salary of at least AED 15,000 per month for mortgage applications, even if the DBR would technically clear at a lower income. Check eligibility for your specific income and debt profile using the eligibility checker.
Can you get an Islamic mortgage on a AED 1 million property?
Yes. Islamic banks (DIB, ADIB, Emirates Islamic) and the Islamic windows of conventional banks offer Sharia-compliant home finance on AED 1 million properties. The deposit and LTV rules are identical to conventional mortgages, as they are set by CBUAE and apply to all lenders regardless of structure.
Islamic home finance uses Diminishing Musharakah or Murabaha structures rather than an interest-bearing loan. The profit rate on Islamic home finance is currently as low as 3.25%, which can make it cheaper than some conventional products. For a comparison of Islamic and conventional products side by side, see the rates table.
Property value scenarios
These figures use an 80% LTV (expat first home) and a 3.70% rate over 25 years.
| Property price | Deposit (20%) | Loan (80%) | Monthly payment (approx) |
|---|---|---|---|
| AED 750,000 | AED 150,000 | AED 600,000 | AED 3,068 |
| AED 1,000,000 | AED 200,000 | AED 800,000 | AED 4,091 |
| AED 1,500,000 | AED 300,000 | AED 1,200,000 | AED 6,136 |
| AED 2,000,000 | AED 400,000 | AED 1,600,000 | AED 8,181 |
Which banks offer mortgages for a AED 1 million property?
Most major UAE banks will lend on properties worth AED 1 million+. Some smaller banks or niche lenders have minimum property values of AED 500,000 to AED 750,000, so AED 1 million is well within scope for all the main lenders.
Main conventional lenders: ADCB, Emirates NBD, FAB, HSBC, Mashreq, CBD, RAKBANK, Standard Chartered.
Main Islamic lenders: DIB, ADIB, Emirates Islamic.
For specific current rates from each bank, use the rate comparison table. Rates change regularly in line with EIBOR and CBUAE base rate movements.
Frequently asked questions
Can an expat get a mortgage on a AED 1 million property in the UAE?
Yes. Most major UAE banks lend to expatriate residents on AED 1 million+ properties in designated freehold areas. You need a valid UAE resident visa, typically 6 months or more of UAE employment, and a gross monthly salary of at least AED 8,200 assuming no other debts (the CBUAE 50% DBR cap). Self-employed buyers typically need 2 years of audited accounts.
How much deposit do I need for a AED 1 million property in the UAE?
Under CBUAE mortgage regulation, expatriates must put down at least 20% (AED 200,000) for a first home worth AED 1 million. UAE nationals need a minimum 15% (AED 150,000) for a first home. For a second home or investment property, the minimum deposit rises to 35% for expats and 25% for UAE nationals.
What is the monthly payment on a AED 800,000 mortgage?
At 3.70% over 25 years, the monthly payment is approximately AED 4,091. At an Islamic profit rate of 3.25% over 25 years, the payment falls to around AED 3,900. Use the mortgage calculator for a precise figure based on your exact rate and term.
What are the total upfront costs to buy a AED 1 million property in the UAE?
Beyond the deposit, budget approximately AED 50,000 to AED 56,000 in fees. The main items are the DLD transfer fee (4% of the property price = AED 40,000), mortgage registration fee (0.25% of the loan), a valuation fee (typically AED 2,500 to AED 4,000), and the bank arrangement fee (typically 1% of the loan). Source: Dubai Land Department published fee schedule.
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