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Mortgage Advice for Dubai Home Buyers

Know what you can borrow, what you will pay on day one and what to line up first, before you start viewing homes.
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The cash you need on day one is bigger than the deposit

Banks do not lend against the cost of buying. These charges are paid in cash, on top of your deposit.
Item Number Note
Deposit 20%+ Rises with property value, or if it is a second property.
Dubai Land Department transfer fee 4% Of the purchase price.
Agent commission (resale) About 2% + VAT Negotiable. Often paid by the developer on new off-plan sales.
Mortgage registration 0.25% of the loan Plus a small admin fee.
Bank valuation AED 2,500–3,500 Varies by bank and property.
Bank arrangement fee Varies Ask for it in writing before you apply.

For a first home at 80% LTV, the total cash needed at completion often lands between 25% and 30% of the price.

Example: AED 1,500,000 home, 80% loan. Deposit AED 300,000. Other costs roughly AED 110,000 to 120,000. Total cash about AED 410,000 to 420,000. Illustration only.

From first conversation to keys, in five checkpoints

  1. Affordability check. We work out a realistic budget from your income, debts and savings, so you shop in the right range.
  2. Pre-approval. A bank reviews your documents and tells you in principle how much it would lend. It is not final, but it shows sellers you are serious.
  3. Offer and contract. When you make an offer, make sure the agreement reflects that you are using finance, so the deposit is protected if the loan fails.
  4. Valuation and final offer. The bank values the property and issues its formal offer. The loan is based on the valuation or the price, whichever is lower.
  5. Registration and transfer. The mortgage is registered at the Dubai Land Department on the day ownership transfers.

Frequently Asked Questions

Many banks and brokers provide pre-approval without charging a fee, and it does not bind you to the bank or to a particular property. Ask about any fee before you submit documents. A pre-approval is an indication, not a guarantee, because the bank still values the property and completes its checks before the final offer.
The bank lends a percentage of the valuation or the price, whichever is lower. If the valuation is short, you must cover the difference in cash, or negotiate the price down with the seller. That is why a pre-approval and a clear finance condition in the contract are important before you commit to a price.
Yes, but the term may be shorter. The maximum loan term is 25 years, and repayments must usually finish before you reach a bank-set age limit, commonly 65 for salaried borrowers and 70 for self-employed ones. A shorter term means higher monthly payments, which affects how much you can borrow.
Most banks accept joint applications. Both incomes can count towards affordability, but both people’s existing debts count too, and both are responsible for repaying the loan.
Banks check your history through the Al Etihad Credit Bureau. Multiple applications in a short period can leave several enquiries on your file, which some lenders view cautiously. It is usually better to shortlist two or three suitable lenders first, then apply.

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