Key takeaways
- Allow roughly 5.5–7.6% of the price for purchase costs, paid on top of your deposit.
- The biggest single cost is the Dubai Land Department transfer fee: 4% of the price.
- Mortgage costs include registration (0.25% of the loan), valuation and the bank’s arrangement fee.
- Ongoing costs — service charges, insurance and utilities — belong in your monthly budget too.
On this page
Ask most buyers what they need to save and they will name the deposit. In Dubai, the one-off costs of buying with a mortgage add a significant amount on top — and they are usually paid from your own funds, not the loan. Knowing them in advance is the easiest way to avoid a shortfall on transfer day.
Government and registration fees
Dubai Land Department transfer fee — 4% of the price
This is the largest fee. It is calculated on the purchase price and, by market convention, is normally paid by the buyer. On an AED 2,000,000 property it comes to AED 80,000. There are also small administration and title-deed charges.
Registration trustee office fee
The transfer is processed at a DLD registration trustee office, which charges a fixed fee — around AED 4,000 plus VAT for properties priced above AED 500,000 (lower for cheaper properties).
Mortgage registration fee — 0.25% of the loan
Registering your mortgage against the title deed costs 0.25% of the loan amount plus a small administration fee. On an AED 1,600,000 loan that is AED 4,000, plus around AED 290.
Bank and mortgage costs
- Arrangement (processing) fee: up to 1% of the loan plus VAT. Some banks reduce or waive it in promotions.
- Valuation fee: typically around AED 2,500–3,500 plus VAT, paid before the final offer.
- Life insurance and property insurance: usually required for the life of the loan; often added to your monthly payment.
- Early-settlement fee (later): capped by the UAE Central Bank at 1% of the outstanding balance or AED 10,000, whichever is lower.
Agency commission
If you buy through a real-estate agent, the commission is commonly 2% of the price plus VAT. Buying directly from a developer usually avoids it, although off-plan purchases have their own fees.
Worked example: an AED 2,000,000 home
Here is the full picture for an expatriate first-time buyer with a 20% deposit, using our calculator’s default assumptions. You can change every figure in the calculator to match the quotes you receive.
| Item | Basis | Amount (AED) |
|---|---|---|
| Deposit | 20% of price | 400,000 |
| DLD transfer fee | 4% of price | 80,000 |
| Transfer admin / title deed | Fixed | 580 |
| Mortgage registration | 0.25% of loan | 4,000 |
| Mortgage registration admin | Fixed | 290 |
| Bank arrangement fee | 1% of loan | 16,000 |
| Valuation | Fixed | 3,000 |
| Trustee office fee | Fixed | 4,200 |
| Agency commission | 2% of price | 40,000 |
| VAT on service fees | 5% | 3,160 |
| Total cash needed | 551,230 |
In this example the costs on top of the deposit come to AED 151,230 — about 7.6% of the price including agency commission. Without an agent (no commission or VAT on it) the figure falls to about 5.5%. With an AED 1,600,000 loan over 25 years at an illustrative 4.49%, the monthly repayment would be about AED 8,884.
Ongoing costs of owning
- Service charges: paid annually to the building or community, usually per square foot. They vary widely between developments — ask for the latest figure before you buy.
- Insurance: life cover and property insurance required by your lender.
- Utilities: DEWA connection and deposit, plus district cooling charges in some buildings.
- Maintenance: budget for repairs, especially in older villas.
How costs differ for off-plan purchases
When you buy off-plan, the 4% DLD fee is usually due when the sale is registered (through the Oqood system), early in the payment plan rather than at completion. If you finance the balance at handover, mortgage registration, valuation and arrangement fees then apply at that stage. See our handover financing guide.
Five ways to keep costs down
- Compare arrangement fees as well as rates — some lenders waive them.
- Ask whether the valuation fee is refundable or included.
- Check service charges before committing; they affect your monthly budget for years.
- Negotiate agency commission where possible, or consider developer sales.
- Keep a buffer of 1–2% of the price for anything unexpected on transfer day.
Sources
- Dubai Land Department, Registering the sale of a mortgaged property: the 4% fee on the sale value, the 0.25% mortgage fee, the registration trustee fee (AED 4,200 for sales of AED 500,000 or more, which is AED 4,000 plus VAT) and the AED 250 title-deed fee.
- Dubai Land Department, Buy or sell property via Dubai Now: lists a 2% commission for each of the buyer and the seller through that service.
- Dubai Land Department, Developers asked to pay property registration fees within 60 days, 31 May 2021: off-plan sales are registered by the developer, with the 4% fee paid within 60 days.
- Central Bank of the UAE Rulebook, Appendix No. (2), maximum fees for retail customers: home-loan early settlement is capped at 1% of the outstanding balance or AED 10,000, whichever is less, and fees are quoted exclusive of VAT.
- Federal Tax Authority, VAT frequently asked questions: sales of residential property are generally exempt, and the first supply of a new residential building within three years of completion is zero-rated.
- Federal Decree-Law No. 8 of 2017 on Value Added Tax: the standard rate is 5%.
- Checked against the sources above on 29 October 2026. The valuation fee (AED 2,500–3,500), the bank arrangement fee (up to about 1%), the small administration items in the worked example (AED 580 and AED 290) and typical agency commission are Mortgage Hub assumptions or market practice, not figures we could confirm from an official page; agents and banks set their own. Confirm current fees with the Dubai Land Department, your registration trustee and your lender.
Frequently asked questions
By market convention in Dubai the buyer pays the 4% transfer fee, although it can in principle be negotiated between the parties.
The sale of most existing residential property is exempt from VAT, but VAT applies to service fees such as agency commission, bank fees and trustee fees.
Some, such as a valuation fee, are usually non-refundable once the work is done. Check each provider’s terms.
This article is general information about mortgages in the UAE, correct to the best of our knowledge on 21 October 2026. It is not financial advice. Rates, fees and lending criteria change and are set by each lender and authority — confirm the details for your situation.
