UAE Mortgage Fees Explained: Dubai, Abu Dhabi and Other Emirates

When buying a property in the UAE with a mortgage, your down payment is only one part of the total cash you need.

Many buyers focus on the property price and mortgage rate, but the upfront costs can make a big difference to your budget. Before making an offer, it is important to understand the full cost of buying with finance.

This guide explains the main UAE mortgage fees and buying costs to consider, including examples for Dubai and Abu Dhabi.

1. Property down payment

Your down payment depends on your residency status, nationality, property value, and whether you are buying your first home or an investment property.

As a guide, first-time buyers purchasing a completed property below AED 5 million may be eligible for:

• UAE residents: up to 80% mortgage, meaning a minimum 20% down payment
• UAE nationals: up to 85% mortgage, meaning a minimum 15% down payment
• Non-residents: typically 50–60% mortgage, meaning a higher down payment

For first-time buyers purchasing above AED 5 million, the maximum mortgage is usually lower:

• UAE residents: up to 70% mortgage, meaning a minimum 30% down payment
• UAE nationals: up to 75% mortgage, meaning a minimum 25% down payment
• Non-residents: typically 50–60% mortgage, regardless of purchase price

These are general guidelines and remain subject to bank approval, affordability, property type, and client profile.

For a wider overview of borrowing limits and the mortgage process, read our UAE Mortgage Guide 2026.

2. Government purchase fees

Government fees vary depending on the emirate where you are buying.

Dubai purchase fee example

For Dubai purchases, buyers should usually budget for:

• Dubai Land Department fee: 4% of the purchase price + AED 580 admin fee
• Mortgage registration fee: 0.25% of the loan amount + AED 290 admin fee
• Trustee or transfer centre fee: AED 4,200 fixed fee

Abu Dhabi purchase fee example

For Abu Dhabi purchases, buyers should usually budget for:

• Abu Dhabi Municipality land fee: 2% of the purchase price
• Mortgage registration fee: 0.1% of the loan amount + AED 1,000

Fees in other emirates vary on a case-by-case basis, so it is important to confirm the applicable costs before proceeding.

3. Bank arrangement or processing fee

Many banks charge an arrangement or processing fee for setting up the mortgage. This can vary depending on the bank, mortgage product, and whether any promotions are available.

Some banks may reduce, waive, or allow certain fees to be added to the loan, depending on the product at the time.

4. Property valuation fee

Before issuing the final mortgage offer, the bank will require a property valuation.

The valuation confirms whether the property supports the agreed purchase price from the bank’s perspective. If the valuation comes in lower than the purchase price, you may need to increase your down payment or renegotiate the price.

5. Life insurance

Most banks require life insurance as part of the mortgage. The cost can depend on your age, health, loan amount, and the bank’s insurance requirements.

Some banks allow external life insurance, while others may require or prefer their approved provider.

6. Property insurance

Property insurance is also usually required by the bank. This protects the property itself and is normally renewed annually.

7. Agency, transfer and completion costs

You should also budget for agency commission, trustee or transfer centre fees, conveyancing costs, developer NOC fees, and any completion-related costs that may apply.

The exact cost can vary depending on the emirate, developer, seller situation, bank, and property type.

Why a full cost breakdown matters

A mortgage with a low headline rate is not always the cheapest option overall.

When comparing mortgage options, you should look at:

• Interest rate
• Bank fees
• Government fees
• Valuation fee
• Life insurance cost
• Property insurance cost
• Early settlement fee
• Overpayment flexibility
• Follow-on rate after the fixed period
• Total upfront cash required

A proper mortgage proposal should clearly break down the expected mortgage, bank, and government costs before you proceed.

Final thoughts

Before buying property in the UAE, make sure you understand the full cash requirement — not just the down payment.

A clear cost breakdown helps you plan properly, avoid surprises, and compare mortgage options more accurately.

For a wider overview of the full mortgage journey, including borrowing limits, timelines, documents, and approval stages, read our UAE Mortgage Guide 2026.