By The Principal Advisory Team | Principal | May 2026 | 6 min read
Last updated: June 2026. Fee figures verified against DLD published schedules and UAE Central Bank regulations current at date of publication.
Beyond the headline 20%, there are DLD fees, agent fees and bank charges. Here is the real number.
For a UAE resident buying a AED 2 million property with an 80% LTV mortgage, the total cash required on the day is approximately AED 556,000, not the AED 400,000 headline deposit. Here is exactly where the difference goes, and what the real number looks like for non-residents and off-plan buyers too.
The 20% Is Accurate. The 20% Is Not Enough.
Every overview of Dubai mortgages mentions the 20% minimum deposit. It is the correct figure for a UAE resident's first property below AED 5 million, financed through a conventional mortgage. It is also incomplete in a way that catches first-time buyers off guard every single time.
The 20% is the equity contribution required toward the property itself. It does not include the fees, and the fees are not small. On an AED 2 million property, the 20% deposit is AED 400,000. The total cash you need to complete the transaction is closer to AED 550,000 to AED 600,000, depending on your specific circumstances.
The difference is transaction costs: government fees, agent commission, bank charges, and processing fees that exist entirely outside the property price and must be paid entirely in cash. Since February 2025, following a UAE Central Bank directive, banks can no longer finance any transaction costs. Every dirham of fees comes from the buyer's own funds.
Understanding this before you start looking at properties is the difference between entering the market with confidence and discovering a six-figure shortfall when the trustee office appointment is booked.
The Full Fee Stack, Line by Line
Here is every charge a mortgage-buying UAE resident faces on a ready property purchase in 2026.
DLD Transfer Fee: 4% of the purchase price. This is the largest cost after the deposit and is non-negotiable. On an AED 2 million property it is AED 80,000, paid to the Dubai Land Department at the point of transfer. By established Dubai market convention, the buyer pays the full 4% in virtually every resale transaction. Some developers absorb a portion of this on new off-plan sales as a launch incentive. Always confirm who bears the DLD fee before signing anything.
DLD Registration Fee: AED 4,200. A fixed charge paid to the trustee office to process the transfer. This applies to properties above AED 500,000. Below that threshold, it is AED 2,100.
Title Deed Issuance: AED 580. A fixed charge for the physical title deed document.
Agent Commission: 2% of the purchase price, plus 5% VAT. On a secondary market purchase, the buyer typically pays the agent 2% of the agreed price plus VAT. On an AED 2 million property, that is AED 40,000 plus AED 2,000 VAT, totalling AED 42,000. On off-plan developer purchases, agent commission is usually paid by the developer rather than the buyer. Confirm this before you engage an agent on a new development.
DLD Mortgage Registration Fee: 0.25% of the loan amount, plus AED 290 admin charge. This is paid specifically to register the mortgage lien against the property. On a mortgage of AED 1.6 million (80% of AED 2 million), the fee is AED 4,000 plus AED 290, totalling AED 4,290.
Bank Arrangement Fee: typically 1% of the loan amount, plus 5% VAT. Banks charge a processing fee for arranging the mortgage. On a loan of AED 1.6 million, this is AED 16,000 plus AED 800 VAT, totalling AED 16,800. Some banks offer reduced or flat fees during promotional periods. Confirm this before selecting a lender, as fees vary significantly.
Property Valuation Fee: AED 2,500 to AED 3,500, plus 5% VAT. The bank instructs an independent valuer and the buyer pays for it. Budget AED 3,675 at the top of that range including VAT.
Life Insurance or Mortgage Protection Premium: first year cost varies by age, health, and loan size. Most banks require borrowers to hold life insurance with the loan as a condition of approval. This protects the lender if the borrower dies before the mortgage is repaid. For a buyer in their 30s with a AED 1.6 million loan, first-year premiums typically range from AED 3,000 to AED 6,000. For buyers over 45 or with loans above AED 2 million, premiums can rise to AED 12,000 to AED 18,000 annually depending on the insurer and health assessment. The premium figure given here is illustrative for a younger borrower. Always request a specific quote from the bank's insurance provider and compare it against alternative insurers before signing. Banks cannot compel you to use their in-house insurer; you have the right to bring your own qualifying policy.
The Real Number: A Worked Example
A UAE resident purchasing an AED 2 million ready apartment with 80% LTV financing.
Deposit (20%): AED 400,000 DLD Transfer Fee (4%): AED 80,000 DLD Registration: AED 4,200 Title Deed Issuance: AED 580 Agent Commission (2% + VAT): AED 42,000 DLD Mortgage Registration (0.25% + admin): AED 4,290 Bank Arrangement Fee (1% + VAT): AED 16,800 Valuation (including VAT): AED 3,675 Life Insurance First Year (mid-range estimate, buyer under 40): AED 5,000
Total cash required: approximately AED 556,545
That is AED 156,545 more than the headline 20% deposit. The effective cash requirement is approximately 28% of the purchase price once fees are included. A buyer with exactly AED 400,000 available cannot complete this transaction. A buyer with AED 550,000 can complete it but with almost no margin. A buyer with AED 600,000 or above completes with confidence.
If you are working backward from a maximum available cash figure, this gap matters before you make any offer.
How the Numbers Change for Non-Resident Buyers
For overseas investors without UAE residency, the deposit structure changes significantly. The minimum LTV available to non-residents is typically 50%, with some lenders extending to 60% for ready secondary market properties for buyers from countries including the UK, EU, US, Australia, India, and GCC nations.
On the same AED 2 million property at 50% LTV:
Deposit (50%): AED 1,000,000 DLD Transfer Fee (4%): AED 80,000 DLD Registration: AED 4,200 Title Deed Issuance: AED 580 Agent Commission (2% + VAT): AED 42,000 DLD Mortgage Registration (0.25% + admin, on AED 1M loan): AED 2,790 Bank Arrangement Fee (1% + VAT, on AED 1M loan): AED 10,500 Valuation (including VAT): AED 3,675 Life Insurance (first year): AED 5,000
Total cash required: approximately AED 1,148,745
The fee stack as a proportion of the loan is slightly lower because the loan is smaller, but the total cash requirement is dramatically higher because the deposit is 50% rather than 20%. For non-resident buyers, the primary barrier to entry is not the fees. It is the equity requirement. Budget the fees on top of, not instead of, the deposit.
Off-Plan Purchases: A Different Timing Structure
Off-plan transactions work differently, and the timing of fee payments is distinct from ready property purchases.
For an off-plan purchase, the DLD registration is paid upfront as an Oqood fee of approximately AED 2,100 to AED 2,200 plus a small administration charge. This registers your interim ownership during the construction period. The Oqood does not convert to a full DLD title deed until the property completes and the Building Completion Certificate is issued. The 4% DLD transfer fee is paid at completion, not at the time of purchase.
Developer commission on off-plan new launches is typically paid by the developer rather than the buyer. If you are working with an agent on an off-plan purchase, their commission structure should be confirmed in writing before you sign.
The practical consequence for off-plan buyers: the large fee payments are deferred to handover. This improves cash flow during the construction period but requires planning. The 4% DLD transfer fee needs to be available in cash at the point the property completes, alongside your final instalment payment. Many off-plan buyers discover this obligation later than they should and find themselves short at handover. If your property completes in the next twelve months, verify this cash requirement now.
What Can and Cannot Be Financed
Since February 2025, following a UAE Central Bank regulatory directive, the following cannot be included in a mortgage or financed by the bank in any form:
DLD transfer and registration fees Agent commission Bank arrangement fees Valuation fees Any other transaction cost
The bank finances the property itself, up to the approved LTV. Everything else is your cash, confirmed in your account before you make an offer. This was a significant change from the practice that existed before February 2025, when some banks would roll fees into the loan or allow a top-up facility to cover them. If you are working from guidance or a conversation that pre-dates this change, recalibrate your numbers.
Quick Reference: How to Estimate Your Total Cash Requirement
UAE resident, first property, 80% LTV: take the purchase price and multiply by 28%. That is a reasonable planning estimate for total cash required, before any negotiation on individual fees.
UAE resident, second property, 60% LTV: take the purchase price and multiply by 47%.
Non-resident buyer, 50% LTV: take the purchase price and multiply by 60%, accounting for the larger deposit and the same fee stack.
Off-plan buyer where the developer absorbs DLD at purchase: reduce your upfront cash figure by 4% of the purchase price, but ensure that same amount is reserved for the DLD transfer fee due at handover.
These are planning estimates, not precise figures. The actual total depends on whether agent commission applies, which bank you use, what life insurance costs for your age and loan size, and whether any fees are negotiated or waived. A specific property and loan amount modelled with an advisor takes twenty minutes and removes all ambiguity.
Frequently Asked Questions: Dubai Deposit and Buying Costs
What is the minimum deposit to buy property in Dubai in 2026? For UAE residents purchasing their first property below AED 5 million with a mortgage, the minimum deposit is 20% of the property's appraised value. However, total cash required is closer to 27% to 28% of the purchase price once DLD fees, agent commission, and bank charges are included. For non-residents, the minimum deposit is typically 40% to 50% of the appraised value, with total cash requirements of approximately 57% to 60% of the purchase price.
What are the DLD fees when buying property in Dubai? The main DLD charge is the 4% transfer fee on the purchase price. Additional DLD charges include the registration fee of AED 4,200 (for properties above AED 500,000) and the title deed issuance fee of AED 580. If using a mortgage, an additional 0.25% of the loan amount is paid to register the mortgage lien, plus an AED 290 administrative charge.
Can I add the Dubai property fees to my mortgage? No. Since February 2025, UAE banks cannot finance DLD fees, agent commission, bank arrangement fees, valuation fees, or any other transaction costs. All fees must be paid in cash from your own funds.
What are the total transaction costs when buying property in Dubai? Total transaction costs in Dubai typically run 7% to 8% of the purchase price for a mortgage-financed ready property purchase, or 7% to 10% at the higher end depending on whether all standard fees apply. This includes the 4% DLD transfer fee, 2% agent commission, DLD registration and mortgage registration fees, bank arrangement fee, and valuation. For cash buyers without a mortgage, total costs are typically 6% to 7%.
How much does life insurance cost on a UAE mortgage? Life insurance premiums for UAE mortgages vary based on the borrower's age, health, and the loan size. For a borrower under 40 with a AED 1.5 million loan, first-year premiums typically range from AED 3,000 to AED 6,000. For buyers over 45 or with larger loans, premiums can rise to AED 12,000 to AED 18,000 annually. You are entitled to source your own qualifying policy rather than using the bank's in-house insurer, which can produce meaningful savings.
Do I pay stamp duty when buying property in Dubai? No. Dubai has no stamp duty, no annual property tax, no capital gains tax, and no income tax on rental income within the UAE. The 4% DLD transfer fee is a one-time cost at purchase. This makes Dubai's holding cost structure significantly lower than most comparable global property markets.
Book a no-obligation cash requirement assessment with Principal before you make any offer.
The Principal Advisory Team comprises qualified UAE mortgage advisors with experience across all major UAE lenders and property transaction types. Principal is a UAE-based property finance brokerage. All fee figures are accurate to June 2026 based on published DLD schedules and lender rate sheets. Individual transaction costs vary. This article is for general guidance only and does not constitute financial advice.
