Twenty percent is what many buyers focus on. It is not the full amount you need to buy a home.
On top of your deposit come government registration fees, broker commission, mortgage registration, valuation and the bank’s own charges.
And since February 2025, banks no longer finance transfer fees and agent commission, so these are paid in cash.
The useful question is not “What is my deposit?” It is: “How much cash do I actually need to complete the purchase?”
The bills beyond the deposit
It helps to sort the costs by who you pay.
The government. The relevant land department charges a fee to register the property, plus mortgage-registration and document fees. The exact amount depends on the emirate and transaction.
The agent. On a resale property, the buyer may pay a broker commission. Around 2% is common in the market, with 5% VAT on the commission.
The bank. Expect a valuation fee and potentially a mortgage-processing or arrangement fee. The exact amount depends on the lender and must be disclosed in the bank’s Key Facts Statement.
One Dubai home, added up
Take a AED 2 million resale home in Dubai bought by an expat with a 20% deposit and a AED 1.6 million mortgage. The government fees are Dubai Land Department’s published rates.
Deposit (20%) | AED 400,000 |
|---|---|
Sale registration (4% of the sale value) | AED 80,000 |
Mortgage registration (0.25% of the mortgage) | AED 4,000 |
Registrar fee | AED 4,200 |
Title-deed fee | AED 250 |
Agent commission (2%) plus VAT | AED 42,000 |
Subtotal before bank charges | about AED 530,000 |
Bank processing and valuation, at one bank’s published fees | about AED 19,400 |
Cash needed | about AED 550,000 |
That is well above the AED 400,000 deposit: about 27.5% of the price in this example.
Treat the total as a planning figure, not a quote. The bank lines depend on the lender, and some registrar charges depend on how and when the sale and mortgage are registered.
Costs vary by emirate and lender. As a planning estimate, budget roughly 6.5% to 8% of the price on top of your deposit.
The line that changes with the emirate
Property-registration costs are not identical across the UAE. The 4% in this example is Dubai’s fee, and other emirates have different fee structures.
So don’t take a Dubai calculation and apply it to a property in Abu Dhabi, Sharjah or another emirate. Check the relevant land or property authority before fixing your cash budget.
What can lower the bill
Buy directly from a developer. There may be no buyer-side broker commission, and some developers offer to cover or subsidize certain registration costs. Get the offer in writing.
Compare banks. Processing fees, valuation charges and other costs differ between lenders.
Negotiate the commission. A broker’s commission is a commercial charge, not a universal 2% rule across every transaction.
After day one
The costs don’t stop when you get the keys. A mortgaged property can also come with property insurance and, depending on the bank, life insurance. Service charges for the community or building, and maintenance, come on top.
These are ongoing costs, not part of the initial deposit.
So when comparing mortgages, don’t look only at the interest or profit rate. Look at the total cost of getting the keys and the ongoing cost of owning the property.
Ninja’s Takeaways
Budget for the deposit plus fees. On a AED 2 million home in Dubai, that is about AED 550,000, not AED 400,000.
The fees have to be paid in cash. Banks no longer finance the transfer fee or the agent’s commission.
Registration costs differ by emirate, so check the relevant property authority before setting your budget.
Illustrative figures only. Fees, bank charges and transaction structures vary by emirate, lender and property. Check the relevant land/property authority and the bank’s current Key Facts Statement before committing to a purchase.
