When purchasing property in Dubai using bank financing, many first-time buyers budget only for their 20% home loan down payment. However, Central Bank of the UAE directives require buyers to settle closing and administrative fees in liquid cash upfront, as banks can no longer wrap transaction fees into the total mortgage financing.
Upfront Fees Required Outside Your Mortgage
| Fee Type | Percentage / Amount | Payment Recipient |
|---|---|---|
| Dubai Land Department (DLD) Transfer Fee | 4% of Property Price + AED 580 | Dubai Land Department |
| Real Estate Agency Commission | 2% of Purchase Price + 5% VAT | Real Estate Brokerage |
| DLD Registration Trustee Fee | AED 4,200 (incl. VAT) | DLD Trustee Center |
| Mortgage Registration Fee | 0.25% of Loan Amount + AED 290 | Dubai Land Department |
| Bank Processing Fee | 0.5% – 1% of Loan Amount + VAT | Lending Bank |
| Independent Property Valuation Fee | AED 2,500 – 3,500 (incl. VAT) | Bank Appointed Valuer |
Real World Example: Buying an AED 1.5 Million Apartment
For a ready secondary-market apartment priced at AED 1,500,000, an expat buyer requires:
- 20% Down Payment: AED 300,000
- DLD & Trustee Fees: AED 64,780
- Agency Commission: AED 31,500
- Mortgage Reg & Bank Valuation: ~AED 9,500
- Total Upfront Cash Needed: Approximately AED 405,780 (~27% of property purchase price).
Plan Your Upfront Budget with AskTaskers
Unsure about total closing costs? Post your property requirements on AskTaskers to connect with licensed mortgage brokers across Dubai.
Consult a Mortgage Advisor
