You found the perfect property. You’ve calculated your 20% down payment. You’ve even started imagining where the sofa will go.

Then your broker says:

“You’ll also need another AED 80,000.”

Wait… what?

One of the biggest surprises for first-time buyers in Dubai isn’t the mortgage. It’s everything that comes after it.

The truth is that the purchase price isn’t the total price. And failing to budget for the additional costs can delay your transaction, derail your plans, or force you to compromise on the property you really want.

Let’s break down exactly what buying a home in Dubai actually costs.

The Biggest Mistake First-Time Buyers Make

Most buyers focus on one number:

The down payment.

But the down payment is only part of the equation.

On top of your deposit, you’ll need to budget for government fees, mortgage charges, commissions, and ongoing ownership costs.

In most cases, buyers should expect to pay an additional 7–8% of the property value upfront, depending on the type of transaction and financing structure.

1. Down Payment

For UAE residents:

• Up to AED 5 million: Minimum 20%
• Above AED 5 million: Minimum 30%

For non-residents:

• Typically 40–50%

Example:

Property Price: AED 2,000,000

20% Down Payment:
AED 400,000

2. Dubai Land Department (DLD) Fee

This is the largest additional expense.

DLD Fee:

4% of the purchase price

Example:

AED 2,000,000 property

DLD Fee:
AED 80,000

This fee applies to most property transfers in Dubai.

3. Trustee Office Fees

The transfer process is completed through authorised trustee offices.

Typical trustee fees:

• AED 4,200 plus VAT for properties above AED 500,000
• Lower fees for smaller transactions

Budget approximately:

AED 4,500–5,000

4. Agency Commission

Buying through an agent?

Expect:

2% of the purchase price plus VAT

Example: AED 2,000,000 property

Commission: AED 40,000 + VAT

Some off-plan purchases may not require buyers to pay commission because developers compensate agents directly.

5. Mortgage Registration Fee

If you’re financing the property, the mortgage itself must be registered.

Fee:

0.25% of the loan amount + AED 290

Example:

Loan Amount: AED 1,600,000

Mortgage Registration: AED 4,290

6. Bank Arrangement Fee

Most banks charge:

0.5–1% of the loan amount

Example:

AED 1,600,000 mortgage

Bank Fee:

AED 8,000–16,000

Some promotional offers waive this fee.

7. Property Valuation Fee

Before issuing final approval, banks conduct a valuation.

Typical Cost:

AED 2,500–3,500

This confirms that the property’s market value aligns with the loan request.

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8. Life Insurance

Mortgage-linked life insurance is generally required.

Costs vary based on:

• Age
• Loan amount
• Health profile
• Bank policy

Often charged monthly.

9. Service Charges

Many buyers forget this entirely.

Service charges cover:

• Building maintenance
• Security
• Common areas
• Pools and gyms
• Landscaping

These are recurring annual expenses.

Luxury communities tend to have higher service charges than mid-market developments.

What Does This Look Like in Real Life?

Let’s assume you’re buying a AED 2 million apartment with a mortgage.

Purchase Price

AED 2,000,000

Down Payment

AED 400,000

DLD Fee

AED 80,000

Trustee Fees

AED 4,500

Agency Fee

AED 42,000

Mortgage Registration

AED 4,290

Valuation

AED 3,000

Arrangement Fee

AED 8,000

Approximate Upfront Cash Needed

AED 541,790

That’s over AED 140,000 above your deposit.

And this is exactly why planning matters.

Can These Costs Be Financed?

Usually, no.

Most of these fees need to be paid separately and cannot be included in the mortgage.

That’s why understanding your total cash requirement early is essential.

How Benchmark Brokers Helps Buyers Avoid Surprises

At Benchmark Brokers, we don’t just tell clients how much they can borrow.

We help them understand:

✓ Total upfront costs

✓ Monthly commitments

✓ Ongoing ownership expenses

✓ Bank-specific fees

✓ Ways to reduce unnecessary costs

Because getting approved is only half the journey.

Buying comfortably matters just as much.

Frequently Asked Questions

How much extra should I budget when buying property in Dubai?

Generally, around 7–8% of the purchase price on top of your down payment.

Is the DLD fee refundable?

No.

Can DLD fees be added to the mortgage?

Typically, no.

Are service charges paid monthly?

Usually annually, depending on the community.

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Thinking of buying in Dubai? Speak to Benchmark Brokers for a free consultation and we’ll show you exactly what your total costs could look like before you commit.