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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 exchange margin is a fee that never appears on the invoice

When a bank or exchange counter converts your money, it rarely uses the real market rate. It uses a rate with a margin built in, and sometimes adds a transfer fee on top. On a property payment the amounts are large, so small percentages become real money.
Margin on the rate Cost on a AED 1,000,000 payment
0.25% AED 2,500
0.5% AED 5,000
1% AED 10,000
2% AED 20,000

How to check your own cost: on the day of the transfer, compare the rate you are quoted with the mid-market rate shown on a reputable rate site. The gap, plus any fee, is what you are paying.

When exchange-rate risk matters, and when it does not

Paying in US dollars. The dirham is pegged to the US dollar at about 3.6725 AED per USD. So the exchange rate itself does not move. You still pay the margin, but you do not take rate risk. The dirham peg explained.

Paying in another currency. The rate moves daily. Between the day you reserve a property and the day you pay the balance, the cost in your own currency can rise or fall.

Paying in instalments over years. Off-plan payment plans spread the exposure across many payments. If you will pay in a currency other than dollars, you can agree a rate for a future payment with a forward contract, which fixes the rate today for a payment you make later. Forward contracts for property payments.

Five checks before you send a large payment

  1. Verify the account by phone. Call a number you already trust to confirm the account details. Fraudsters often send “updated bank details” by email just before a payment is due.
  2. Pay from an account in your own name. Developers, trustees and banks often reject payments made by a third party.
  3. Keep source-of-funds documents ready. Salary slips, bank statements or a sale contract speed up anti-money-laundering checks.
  4. Use a regulated provider. Check that the provider is licensed in the UAE or in the country where you are sending from.
  5. Get the rate and fees in writing before you send. Quote, fees, delivery time and the exact amount the recipient will receive.
We will never change payment details by email without calling you.

Five checks before you send a large payment

Property income and proceeds often need to travel out of the UAE.

  • Rental income to your home account, month after month. Regular transfers can be set up so the margin is agreed once rather than renegotiated each time.
  • Sale proceeds after a sale completes. These are larger sums, so the margin matters most.
  • Mortgage and service charge payments made from abroad.

Frequently Asked Questions

Developers quote prices in dirhams, but you can usually fund the payment from an account in another currency, which is converted to dirhams on the way. What matters is who does the conversion and at what rate, because that is where the margin sits. Confirm the payment method with the developer before you send money.
It depends on the currencies, the banks involved and compliance checks. Some arrive within one to two working days, and others take longer. Always allow extra time before a payment deadline, because late payments to a developer or seller can carry penalties.
UAE banks and trustee offices follow anti-money-laundering rules, which require proof of the origin of large payments. Typical evidence is salary slips, bank statements, a sale contract or business accounts. Having them ready avoids delays.
Usually not. Payments from third parties are often delayed or refused. The safest route is to pay from an account in the buyer’s own name. If another route is unavoidable, ask your agent and the receiving party for written approval first.

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