Beyond the down payment, buyers need to budget for DLD fees, mortgage registration, valuation and agency fees. Here is a full breakdown with a worked example.
Key takeaways
- Budget roughly 7 to 8 percent of the price for purchase costs on top of your down payment.
- The Dubai Land Department transfer fee is 4 percent of the price.
- Mortgage registration is 0.25 percent of the loan plus admin fees.
- Purchase costs generally cannot be added to the mortgage.
The costs most buyers forget
Many first time buyers plan carefully for the down payment but underestimate the transaction costs. In Dubai these costs are paid in cash on top of your deposit and generally cannot be added to the mortgage. Knowing them in advance avoids stress on transfer day.
A full breakdown of purchase costs
| Cost | Typical amount |
|---|---|
| Dubai Land Department transfer fee | 4% of the purchase price plus admin fees |
| Mortgage registration fee | 0.25% of the loan amount plus admin fees |
| Real estate agency commission | Usually 2% of the price plus VAT |
| Trustee office fee | Around AED 2,000 to 4,000 plus VAT |
| Bank processing fee | Up to 1% of the loan plus VAT |
| Property valuation | Around AED 2,500 to 3,500 plus VAT |
| Life and property insurance | Monthly, varies by bank and age |
Worked example: AED 2 million apartment
An expatriate buying a first home for AED 2,000,000 with an 80 percent mortgage (AED 1,600,000) might expect:
- Down payment (20%): AED 400,000
- DLD transfer fee (4%): AED 80,000
- Mortgage registration (0.25%): AED 4,000
- Agency commission (2% plus VAT): AED 42,000
- Bank processing (up to 1% plus VAT): up to AED 16,800
- Valuation, trustee and admin: around AED 8,000
Total cash needed: roughly AED 550,000, of which around AED 150,000 is purchase costs. Try our mortgage calculator to estimate your own figures.
Costs for off-plan purchases
When buying off-plan directly from a developer, you usually pay the DLD fee (often 4 percent) at booking, but there may be no agency commission. Some developers run offers that reduce or cover the DLD fee. Payment plans spread the rest of the price over the construction period.
Ways to reduce your costs
- Ask your broker for banks offering reduced or waived processing fees.
- Compare insurance costs, not just rates.
- Negotiate agency commission where possible.
- Look for developer promotions on DLD fees for new launches.
Get a personalised cost breakdown
Tell us the property price and we will send a full breakdown of your cash requirement and monthly repayment.
Frequently asked questions
Can I add the DLD fee to my mortgage?
Generally no. The DLD fee and other purchase costs are paid in cash on top of your down payment.
How much cash do I need to buy a AED 1 million apartment?
As a rough guide for an expat first time buyer, around AED 200,000 for the down payment plus about AED 70,000 to 80,000 in costs.
Who pays the agency commission in Dubai?
The buyer usually pays the agent’s commission, commonly 2 percent of the price plus VAT, although this can be negotiated.