Looking to buy property in the UAE but worried about those hidden costs that keep adding up? You’re absolutely right to be concerned – and the mortgage registration fee in UAE is one expense that catches many buyers off guard.
After facilitating over £4.2 billion in luxury asset financing across international markets, I’ve seen countless clients stumble over these additional fees. The good news? Once you understand the system, you can plan accordingly and even leverage some smart financing strategies to manage these costs.
The mortgage registration fee in UAE typically ranges from 0.1% to 0.25% of your loan amount, depending on which emirate you’re buying in. But there’s much more to this story, especially with recent regulatory changes that could impact your upfront costs significantly.
UAE Mortgage Registration Fee Breakdown by Emirate
The mortgage registration fee UAE varies significantly depending on where you’re purchasing. Here’s what you need to know:
Dubai Land Department Mortgage Charges
In Dubai, the mortgage registration fee is set at 0.25% of the mortgage value. This fee is paid to the Dubai Land Department (DLD) and covers the legal registration of your lender’s security interest in the property.
Example calculation for Dubai:
- Property value: AED 2,000,000
- Mortgage amount: AED 1,600,000 (80% LTV)
- Mortgage registration fee: AED 4,000 (0.25% × AED 1,600,000)
Abu Dhabi Registration Fees
Abu Dhabi takes a different approach with a mortgage registration fee of 0.1% of the purchase price, which is significantly lower than Dubai’s rate. However, some sources indicate this may be calculated as 0.25% of the loan amount, similar to Dubai.
Dubai Mortgage Registration Charges Explained
Dubai’s mortgage registration system operates through the Dubai Land Department’s eMortgage platform, which has streamlined the process considerably. Here’s how it works:
The DLD eMortgage Process
The registration can be completed in two ways:
- Electronic system (eMortgage): Your bank handles everything digitally
- Service center visits: Manual submission at Real Estate Registration Trustee offices
The process involves four key steps: document preparation with your bank, digital submission through eMortgage, fee deduction from the bank account, and email delivery of outputs.
Required Documentation for Dubai
When registering a mortgage in Dubai, you’ll need:
- Letter from the mortgagee bank
- Three DLD-certified mortgage contracts signed by all parties
- Emirates ID or passport for non-residents
- Electronic No Objection Certificate (eNOC) from developers
Looking for expert guidance on UAE property finance? Contact Paul Welch directly for bespoke financing solutions – we specialize in complex international property transactions.
Abu Dhabi Mortgage Registration Process and Fees
Abu Dhabi’s approach to mortgage registration differs from Dubai’s, primarily governed by Resolution No. 49 of 2018.
Key Abu Dhabi Mortgage Costs
For mortgage registration, Abu Dhabi charges 0.001% (one per thousand) of the mortgage value with specific caps: up to AED 2 million for off-plan properties and AED 1 million for other assets.
Additional Abu Dhabi Property Fees
Beyond mortgage registration, Abu Dhabi buyers face several other costs:
- Property transfer fee: 1-4% of property value (typically 2%)
- Real estate agency fee: 2% plus 5% VAT
- Title deed cost: AED 1,000
- Bank valuation fee: AED 2,500-3,000 plus VAT
Recent Changes Affecting UAE Property Mortgage Costs
Here’s where things get interesting – and expensive.
Central Bank’s 2025 Directive
The UAE Central Bank issued new instructions in February 2025 preventing banks from financing DLD registration fees and real estate broker fees. This represents a massive shift in how property purchases are financed.
What this means for you:
Previously, you could include most fees in your mortgage, spreading costs over the loan term. Now, you must pay these upfront:
- DLD fee: 4% of property value (Dubai)
- Agent commission: 2% of property value
- Mortgage registration fee: 0.25% of loan amount
- Various administrative fees: AED 4,200+ in fixed costs
Real-World Impact
For a AED 2 million property in Dubai, total upfront costs have increased to approximately AED 129,700 (excluding the down payment), compared to much lower amounts when these could be financed.
This change makes UAE property purchases significantly more cash-intensive.
Complete UAE Real Estate Mortgage Costs Breakdown
Let me walk you through the full picture of what you’ll pay when buying property in the UAE:
Dubai Property Purchase Costs
For a AED 3,000,000 property in Dubai with 80% financing:
Dubai Property Purchase Costs
| Cost Item | Percentage | Amount (AED) |
|---|---|---|
| Down payment | 20% | 600,000 |
| DLD registration fee | 4% | 120,000 |
| Agent commission | 2% | 60,000 |
| Mortgage registration | 0.25% of loan | 6,000 |
| DLD trustee fee | Fixed | 4,200 |
| Title deed fee | Fixed | 500 |
| Total upfront | – | 790,700 |
Abu Dhabi Property Purchase Costs
| Cost Item | Percentage | Amount (AED) |
|---|---|---|
| Down payment | 20% | 600,000 |
| Property transfer fee | 2% | 60,000 |
| Agent commission | 2% + VAT | 63,000 |
| Mortgage registration | 0.1-0.25% | 3,000-7,500 |
| Title deed cost | Fixed | 1,000 |
| Total upfront | – | 727,000-731,500 |
Need help structuring finance for your UAE property purchase? Explore our specialized financing options designed for international buyers.
Smart Financing Strategies for UAE Property Buyers
Having arranged financing for clients across multiple jurisdictions, here are the strategies I recommend:
1. Consider Alternative Financing Structures
With traditional UAE banks now restricted from financing associated costs, consider:
- International private banks with UAE lending capabilities
- Asset-based lending against existing investments
- Securities-based credit lines for qualified borrowers
2. Optimize Your Down Payment Strategy
Rather than liquidating investments for a larger down payment, explore:
- Margin lending against investment portfolios
- Single stock loans (often the cheapest borrowing globally)
- Cryptocurrency-backed lending for digital asset holders
3. Time Your Purchase Strategically
- Off-plan properties often have different fee structures
- Developer financing may offer more flexible terms
- End-of-quarter purchases sometimes come with negotiated fee reductions
4. Structure Through Appropriate Entities
For significant purchases, consider:
- Corporate ownership for tax efficiency
- Trust structures for succession planning
- International holding companies for multiple property ownership
Expert Tips from Million Plus
After three decades in luxury asset financing, here’s my advice for UAE property buyers:
Currency Risk Management
If your income isn’t in AED, currency fluctuations can significantly impact affordability. We work with specialist currency partners to lock in exchange rates and provide lenders with additional comfort around income stability.
Documentation is Everything
UAE lenders are particularly stringent about documentation. Start gathering financial records, bank statements, and income verification at least 90 days before you plan to purchase.
Think Beyond the Purchase
Consider your exit strategy from day one. Will this be a permanent residence, rental investment, or future sale? Your financing structure should align with your long-term plans.
Leverage Professional Networks
The UAE property market moves quickly. Having pre-approved financing and established relationships with developers, agents, and legal advisors can make the difference between securing your dream property and missing out to cash buyers.
Ready to discuss your specific situation? Email Paul Welch directly for a confidential consultation on UAE property financing.
Frequently Asked Questions
How much to register a mortgage in Dubai?
The mortgage registration fee in Dubai is 0.25% of the mortgage value. For a AED 2 million mortgage, you’d pay AED 5,000.
Are UAE mortgage registration fees tax-deductible?
Mortgage registration fees are generally considered part of your property acquisition costs and may be relevant for capital gains calculations when you eventually sell.
Can I finance the mortgage registration fee?
Since February 2025, UAE banks are no longer permitted to include mortgage registration fees in your loan amount. These must be paid upfront.
What happens if I don’t register my mortgage?
Failure to register your mortgage means your lender has no legal security over the property. This could void your mortgage agreement and create significant legal complications.
Do fees differ for UAE nationals vs. expats?
The mortgage registration fees are the same regardless of nationality. However, UAE nationals may qualify for different down payment requirements and loan terms.
Take Action: Your Next Steps
The UAE property market offers incredible opportunities, but success requires proper planning and expert guidance. Here’s what I recommend:
- Calculate your true costs using the breakdowns provided above
- Secure financing pre-approval before property hunting
- Consider professional guidance for complex transactions
The mortgage registration fee is just one piece of the puzzle. With the right financing strategy, you can minimize upfront costs while maximizing your investment potential.
Browse luxury properties available now on Million Plus or start your financing application to explore your options.
