1. 🏦 Government Fees You Must Pay When Getting a Mortgage in Dubai
Buying a property in Dubai is exciting 🏡, but it’s important to plan for government and administrative fees in addition to the property price and mortgage. These fees are mandatory and must be paid to finalize your property ownership legally. Here’s a detailed breakdown:
1️⃣ Dubai Land Department (DLD) Fees 🏢
The DLD registration fee is one of the largest costs when buying a property in Dubai.
Registration Fee: 4% of the property value
Title Deed Issuance: AED 580
💡 Why it matters: The DLD registration fee officially registers the property under your name, while the title deed issuance confirms your legal ownership. Without this, you cannot fully claim your property rights.
Example: For a property valued at AED 1,000,000, the DLD fee would be AED 40,000 + AED 580 for the title deed, totaling AED 40,580.
2️⃣ Mortgage Registration Fee 💳
When you take a mortgage, the DLD also requires a mortgage registration fee.
Registration Fee: 0.25% of the loan amount
Knowledge Fee: AED 290
💡 Why it matters: This fee ensures that your mortgage is legally recorded. The knowledge fee is a small administrative charge that supports the DLD’s property knowledge systems.
Example: For a mortgage loan of AED 800,000, the registration fee would be AED 2,000 + AED 290 knowledge fee, totaling AED 2,290.
3️⃣ Transfer Center Fee 🔄
The transfer center fee covers the administrative and legal processes for the property transfer.
Flat Fee: AED 4,200
💡 Why it matters: The transfer center manages the smooth handover of ownership from the seller to the buyer and ensures that all legal documents are correctly processed. This fee is fixed, regardless of property value.
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