Reviewed by Kaushal Jha · Published · 7 min read
Key facts
- Dubai Land Department transfer fee: 4% of the purchase price
- Registration trustee fee: AED 4,200 including VAT for properties of AED 500,000 or more; AED 2,100 below that
- Mortgage registration: 0.25% of the loan amount, plus small fixed fees
- Expat first-time buyers below AED 5 million need at least a 20% down payment, on top of the fees
- On a typical AED 2 million purchase, fees alone can come to around 6–8% of the price
Most buyers focus on the down payment. But when you buy a property in Dubai with a mortgage, a second layer of costs arrives on transfer day: government fees, the trustee office, mortgage registration and your bank's own charges. Together they usually add around 6–8% of the price on top of your down payment, and you should plan to pay them from your own savings.
This guide lists every cost, who charges it and what it is likely to be, then works through a real example.
1. Your down payment
The Central Bank of the UAE sets the maximum a bank can lend against a property, called the loan-to-value (LTV) limit. For an expat buying a first home worth less than AED 5 million, the maximum loan is 80%, so the minimum down payment is 20%. Second homes, properties above AED 5 million and off-plan purchases need a larger down payment. See our guide to UAE LTV limits for the full table.
The down payment must come from your own funds, not from a personal loan or credit card.
2. Dubai Land Department (DLD) fees
These are set by the government and are the same at every bank.
| Fee | Amount | Notes |
|---|---|---|
| DLD transfer fee | 4% of the purchase price | Usually paid by the buyer, though it can be negotiated |
| Registration trustee fee | AED 4,200 incl. VAT (price AED 500,000 or more) | AED 2,100 incl. VAT below AED 500,000 |
| Title deed fee | AED 250 | Plus a small map or plan fee (AED 250 for an apartment or building) and AED 10 knowledge and AED 10 innovation fees |
| Mortgage registration | 0.25% of the loan amount | Plus small fixed fees for the title deed and plan; only if you use a mortgage |
The 4% transfer fee is by far the largest. On a AED 2 million home it is AED 80,000.
3. Bank and mortgage costs
These vary from bank to bank, which is one reason to compare lenders before you commit.
- Valuation fee. The bank instructs a valuer to confirm the property's value. Expect a few thousand dirhams; the bank will quote the exact amount.
- Processing or arrangement fee. Some banks charge a percentage of the loan; others run offers with reduced or no processing fee. The Central Bank requires every fee to be shown in a separate schedule attached to your loan contract, so ask for that schedule before you accept an offer.
- Life and property insurance. Banks require life cover for the loan and insurance on the building. These are usually paid monthly or annually rather than upfront.
4. Agency and other costs
- Real estate agent commission. Commonly 2% of the price plus 5% VAT on resale property. It is a market convention, not a legal fixed rate, so it can be discussed. Buying directly from a developer usually means no agent fee.
- Developer NOC. On resale property, the developer issues a no-objection certificate. The fee depends on the developer.
- Moving in. Budget for DEWA connection deposits, any outstanding service charges and moving costs.
Worked example: AED 2 million apartment
An expat buys a ready resale apartment for AED 2,000,000 with an 80% mortgage of AED 1,600,000. The bank processing fee below is an example only: your bank's figure may be higher or lower.
| Item | Amount (AED) |
|---|---|
| Down payment (20%) | 400,000 |
| DLD transfer fee (4%) | 80,000 |
| Registration trustee fee (incl. VAT) | 4,200 |
| Title deed, plan and small fees | about 520 |
| Mortgage registration (0.25% of AED 1.6m, plus fixed fees) | about 4,300 |
| Agent commission (2% + VAT) | 42,000 |
| Bank valuation fee (estimate) | about 3,000 |
| Bank processing fee (example: 1% of the loan) | 16,000 |
| Total cash needed | about 550,000 |
In this example the fees come to about AED 150,000, or 7.5% of the price, and the total cash needed is roughly 27.5% of the price. Without an agent, or with a bank that waives its processing fee, the figure drops noticeably.
You can run your own numbers in our buying costs calculator.
How to keep the costs down
- Compare banks on total cost, not just the rate. A slightly lower rate with a high processing fee can cost more over the first few years.
- Get pre-approved first. You will know your real budget, including fees, before you make an offer. See mortgage pre-approval.
- Negotiate where you can. The agent's commission and, sometimes, who pays the 4% DLD fee are open to discussion.
- Keep a buffer. Valuations can come in below the agreed price. If they do, the bank lends against the lower figure and you need to cover the gap in cash.
Figures in this article are checked against the Dubai Land Department's published fees and Central Bank of the UAE rules on the date shown. Bank fees and offers change often, so treat the bank costs above as examples and ask us for current quotes.
Frequently asked questions
How much cash do I need to buy a property in Dubai with a mortgage?
As a rough guide, an expat buying a first home below AED 5 million needs the 20% minimum down payment plus about 6–8% of the price in fees, so roughly 26–28% of the price in total. The exact figure depends on the property price, the loan amount, the agent's commission and your bank's fees.
Who pays the 4% DLD fee in Dubai?
In practice the buyer usually pays the 4% Dubai Land Department transfer fee, although it can be negotiated between buyer and seller. It is paid at the registration trustee office on transfer day.
Can I add the DLD fee and other costs to my mortgage?
Plan to pay the fees from your own savings. Central Bank rules limit how much a bank can lend against the property's value, and the down payment must come from your own funds. If you are short of cash for the fees, speak to us before you sign a sale agreement.
Are the fees different for off-plan property?
Yes. Off-plan purchases are registered with an Oqood registration instead of a title deed, the fixed fees are different, and the maximum loan is 50% of the value. Developers sometimes run offers that cover part of the DLD fee, so always check what is included.
Do mortgage fees apply if I buy with cash?
No. Cash buyers pay the DLD transfer fee, trustee fee and title deed fees, but not the mortgage registration fee, bank valuation or bank processing fees.