Understanding the costs involved in taking a mortgage is crucial for proper financial planning, as
many people often overlook these expenses. Below are the costs typically associated with
resale and, in many cases, primary property transactions:

● Down Payment: Minimum 20% of the property value (banks usually finance up to 80%,
depending on eligibility and product terms).

● Bank Charges:
○ Processing Fee: 0% to 1% (varies by transaction and bank).
○ Life Insurance: 0.0184% to 0.17% (varies by bank).
○ Property Insurance: 0.035% to 0.06% (varies by bank).

● DLD Charges:
○ Property Transfer Fees: 4% of the property value (as per Form F or MOU).
○ Title Deed Fees: AED 580.
○ Real Estate Fees: 2% of the property value (as per Form F or MOU) + 5% VAT.
○ Mortgage Registration Charges: 0.25% of the loan amount + AED 290.
○ Trustee Fee:
AED 4000+5% if the loan property value is equal to or more than AED 500,000.
AED 2000 + 5% VAT if the loan property value is less than AED 500,000.

Being aware of these costs will help buyers plan their finances more effectively.

The above charges apply to both resale and primary transactions and are specific to the Dubai emirate. Charges for other products may vary, and rates differ for other emirates.