Quick answer: 20% down on a 1,000,000 home is 200,000, leaving an 800,000 loan, a loan-to-value ratio of 80%.
How it's calculated
Down payment = price × percentage, or percentage = down payment ÷ price. The loan you need is the price minus the down payment, and the loan-to-value ratio (LTV) is that loan ÷ price.
Central banks set the highest LTV a lender may offer. In the UAE the mortgage regulations set lower LTV limits for expatriates than for nationals, and for homes above AED 5 million and second homes; in Saudi Arabia SAMA allows a higher LTV for a first home. The limits change, so check the current rules and your bank's offer.
A larger down payment lowers the loan, the monthly payment and the total profit or interest. See the payment with the mortgage calculator, or the price your income allows with the house affordability calculator.
Worked examples
- 1,000,000 price, 20%: 200,000 down, 800,000 loan, LTV 80%
- 750,000 price, 150,000 down: 20% → 600,000 loan
Frequently asked questions
What is the minimum down payment in the UAE?
It depends on residency, the property value and whether it is your first home, under the Central Bank's mortgage regulations. Ask your bank for the current figure.
What is the minimum in Saudi Arabia?
SAMA sets the maximum LTV for home finance, with a higher limit for first-time buyers; the Sakani programme can help with the down payment for eligible citizens.
Does it work for cars?
Yes; the maths is the same. For the full car payment use the car loan calculator.
What is loan-to-value?
The loan divided by the price. With 20% down, the LTV is 80%. A lower LTV usually means less risk for the lender and sometimes a better rate.
Is the down payment the only cash I need?
No. Budget too for transfer fees, agency commission, valuation and bank fees, which can add several percent of the price.
Should I put down more than the minimum?
A larger down payment cuts the payment and the interest, but keep enough savings for emergencies rather than using everything.