Finance & Mortgage · 7 min · 2026-10-23
Total Cost of Buying a Property with a Mortgage in Dubai: Every Line Explained
Buying with a mortgage in Dubai means a down payment plus DLD, registration, trustee and lender fees. Here is every line, worked out on a AED 2 million home.
The total cost of buying a property with a mortgage in Dubai is the down payment plus the purchase costs: the 4% Dubai Land Department (DLD) transfer fee, mortgage registration at 0.25% of the loan plus admin fees, the AED 250 title deed fee, the trustee office fee (AED 4,000 + VAT for properties of AED 500,000 or more) and the lender's own fees, which are set out in your lender's fee schedule. On a AED 2,000,000 first home bought by an expatriate with the maximum 80% loan, the known items alone come to AED 488,250 before VAT, admin and lender fees.
The down payment
The down payment is the largest cash item. It follows from the maximum loan-to-value ratios in Article 3.2 of the UAE Central Bank "Regulations Regarding Mortgage Loans" (Circular 31/2013):
| Buyer and property | Maximum LTV | Minimum down payment |
|---|---|---|
| Expat, first home below AED 5M | 80% | 20% |
| Expat, first home above AED 5M | 70% | 30% |
| Expat, second home or investment | 60% | 40% |
| UAE National, first home up to AED 5M | 85% | 15% |
| UAE National, first home above AED 5M | 75% | 25% |
| UAE National, second home or investment | 65% | 35% |
| Off plan, all buyers | 50% | 50% |
Article 2.4 adds that the down payment must come from your own resources, not from personal loans or credit cards. The LTV is measured on the appraised value (Article 1), so a valuation below the price increases the cash you need.
Official DLD costs
- Transfer fee: 4% of the purchase price. In practice it is usually paid by the buyer; the split is a matter of contract.
- Mortgage registration: 0.25% of the loan amount plus admin fees.
- Title deed: AED 250.
- Trustee office fee: AED 4,000 + VAT for properties of AED 500,000 or more; AED 2,000 below that.
Lender costs
Article 4 requires lenders to detail all fees and charges in a separate schedule attached to the loan contract, and to give you the total cost of the loan over its lifetime. Typical lines include:
- valuation fee: as per your lender's fee schedule
- processing or arrangement fee: as per your lender's fee schedule
- insurance: as stated in the loan's insurance requirement
Ask each lender for its schedule and compare the totals.
Worked example: AED 2 million first home
An expatriate buys a ready AED 2,000,000 home as a first home, with an 80% loan over 25 years at an example rate of 4%.
| Cost line | Basis | Amount |
|---|---|---|
| Down payment | 20% of price | AED 400,000 |
| DLD transfer fee | 4% of price | AED 80,000 |
| Mortgage registration | 0.25% of AED 1,600,000 | AED 4,000 + admin fees |
| Title deed | Fixed | AED 250 |
| Trustee office fee | AED 500,000 or more | AED 4,000 + VAT |
| Valuation and lender fees | Lender's fee schedule | as per your lender |
| Known cash total | AED 488,250 + VAT + admin + lender fees |
Monthly payment on AED 1,600,000 at the example rate of 4% over 25 years: about AED 8,445. A property at this price also meets the AED 2 million threshold for the UAE Golden Visa through real estate, as published on u.ae; see the Golden Visa property calculator.
The same purchase as an investment
If this were a second home or investment, the maximum LTV would be 60%: a loan of AED 1,200,000 and a down payment of AED 800,000. Mortgage registration would be AED 3,000 + admin fees, and the known cash total would rise to AED 887,250 + VAT, admin and lender fees.
Off plan: a different cash profile
For off-plan purchases the maximum LTV is 50% (Article 3.2), your equity is paid to the developer before any loan money (Article 2.1), and payments go into the project's escrow account under Dubai Law No. 8 of 2007. Plan your cash flow over the payment plan, not only at signing. See the off-plan calculators.
Budget checklist
- down payment from your own funds
- 4% DLD fee
- mortgage registration and admin fees
- title deed and trustee fees, plus VAT
- lender fees from the written schedule
- insurance, as required by the loan documents
- a reserve in case the valuation comes in below the price
FAQ
How much cash do I need to buy a AED 2 million property with a mortgage?
For an expat first home with an 80% loan, at least AED 488,250 for the known items, plus VAT on the trustee fee, admin fees and your lender's fees.
Is the mortgage registration fee based on the price or the loan?
On the loan: 0.25% of the loan amount plus admin fees.
Can I add the DLD fee to my mortgage?
The LTV limits in Article 3.2 apply to the property value, and Article 2.4 requires the down payment from your own resources. Ask your lender how it treats purchase costs.
Who pays the 4% DLD fee?
It is usually paid by the buyer in practice, but the split is agreed in the sale contract.
Next steps
Run your own figures with the Dubai buying costs calculators, check your maximum loan with the LTV calculator, and read how much house you can afford.
Reviewed by Ahmed Benjas, co-founder & CEO of Cevitas Real Estate
Moroccan real estate expert based in Dubai, co-founder & CEO of Cevitas Real Estate, a RERA-licensed brokerage (NGI House, Deira), with an AED 200M+ track record. He works in French, Arabic, Darija and English.
Related guides
Calculators for this guide: Mortgage calculator Dubai & UAE · Dubai mortgage for non-residents · Off-plan calculator Dubai