Buying your first home in Dubai is a big step — and the rules are actually in your favour as a first-time buyer. Here is what to expect, what it really costs, and the mistakes to dodge.
The rules favour first-time buyers
The Central Bank gives first-time buyers the most generous Loan-to-Value caps, so you need the smallest deposit:
- UAE nationals: borrow up to 85% (15% deposit) on a home up to AED 5M.
- Expat residents: borrow up to 80% (20% deposit) on a home up to AED 5M.
That is far better than the 60–65% cap on second properties — so your first purchase is the cheapest one to get into. (Above AED 5M the caps step down by 5–10 points; see the deposit guide.)
The cash you actually need
Two buckets, not one:
- Deposit — 15–20% of the price.
- Transaction fees — about 6–8% (4% DLD, 2% agency, registration, mortgage and valuation fees).
On a AED 1,200,000 apartment, an expat first-timer needs roughly AED 240,000 deposit + ~AED 90,000 fees ≈ AED 330,000 in cash. Work out your own figure with the purchase-cost calculator.
What a bank will lend you
Your loan is capped by the 50% Debt Burden Ratio (after a stress test) and the income multiple (7× annual income for expats, 8× for nationals). A common surprise: unused credit-card limits quietly reduce your borrowing power, because banks count ~5% of your total limit as a monthly commitment. Trimming cards before you apply can meaningfully raise your loan. See exactly how much you could borrow with the eligibility calculator.
Mistakes to avoid
- Saving only the deposit — the 6–8% fees catch people out at the transfer.
- Skipping pre-approval — get a pre-approval first so you shop with a real budget.
- Forgetting ongoing costs — service charges are an annual cost on top of the mortgage.
- Ignoring credit-card limits — they cut your loan; reduce them before applying.
- Off-plan without the cash — off-plan needs a 50% deposit, double a ready home.
Your first two steps
Before anything else, find out (1) what you can borrow and (2) the total cash you need. The eligibility calculator and cost calculator give you both in minutes — then you can house-hunt with confidence.