The purchase and mortgage fees that belong in a Dubai budget

Sale registration and mortgage registration are separate charges calculated on different amounts. Buyers also need a written estimate of lender and completion costs.

A buyer who budgets only for the deposit can reach the final stages of a Dubai property purchase with too little cash to complete. Government registration fees, financing charges and professional costs can fall due alongside the price.

The clearest approach is an itemised schedule showing the amount, the basis of calculation, who pays it and when it becomes due. Estimates should be confirmed for the specific transaction rather than copied from an old example online.

Distinguish the two registration charges

Dubai Land Department's fee schedule sets the sale registration charge at 4 per cent of the sale contract value. Mortgage registration is a separate charge of 0.25 per cent of the mortgage debt value. Applying the mortgage percentage to the full purchase price would misstate the calculation.

For illustration, a sale at AED1 million produces a sale registration fee of AED40,000. A mortgage of AED800,000 produces a mortgage registration fee of AED2,000. These examples exclude other charges and do not determine how buyer and seller agree to allocate costs.

The completion estimate should show the allocation expressly. A general assumption about who normally pays is a poor substitute for the contract.

Request the lender's complete schedule

Lender costs can include application or arrangement charges, a property valuation and required cover. Obtain the current tariff and identify which charges are refundable if the purchase or loan does not proceed.

The amount borrowed, the property and the applicant may affect the quote. A promotion that waives one charge can still leave other costs payable. Any condition attached to a waiver should be recorded.

Where a mortgage broker is involved, establish whether the buyer pays a separate fee and what work it covers. Property agency commission is a different service and should appear separately.

Include the route out

A financed owner may later sell, refinance or make a large repayment. Ask for the applicable early settlement or partial repayment terms and any administrative costs of releasing the mortgage. Use current written terms rather than a generic percentage quoted in a guide.

A resale involving an existing mortgage may require additional coordination and documents. Professional advice, inspections and other transaction services should also be included where used.

Finally, separate purchase costs from the money needed after handover. Utilities, furnishing, repairs and service charges can arrive before the home is occupied or let. Keeping those items visible helps prevent a seemingly affordable purchase from consuming the cash needed to run the property.