Can the property acquisition costs be incorporated into the mortgage?

Why these costs sit outside the mortgage

UAE Central Bank mortgage regulations calculate the maximum loan amount as a percentage of the property's purchase price or valuation — not the total transaction cost including fees. That means the following must come from cash you already have, separate from the down payment:

• 4% DLD transfer fee (+ AED 580 admin)
• Mortgage registration fee (0.25% of the loan + AED 290)
• Trustee office fee (~AED 4,200)
• Agency commission (~2%)
• Valuation fee (~AED 2,500-3,500)

What can be financed

The mortgage covers the property price itself, up to your LTV limit — typically 80% for an expat's first home under AED 5M. Some banks allow the bank's own arrangement fee (0-1%) to be added to the loan amount rather than paid upfront, but this is a bank-specific option, not a general rule, and increases your total interest cost over the term.

Worked example

On a AED 2,000,000 property at 80% LTV, the mortgage itself is AED 1,600,000, and the AED 400,000 down payment plus roughly AED 130,000-150,000 in acquisition costs must come from your own funds — a total cash requirement of around AED 530,000-550,000. None of the fee items above are added to the AED 1,600,000 loan; only some banks will fold in their own arrangement fee if you ask.

Why regulators structure it this way

Requiring buyers to fund acquisition costs separately ensures a minimum level of genuine equity and cash reserve behind every mortgage, reducing the risk of over-leveraged purchases. It also means your monthly instalment is based purely on the property price financed, not inflated by add-on fees that don't increase the property's value.

Planning your total cash requirement

Since these costs are separate from the mortgage, calculate your total cash need — down payment plus acquisition costs — before you start house-hunting. Use the mortgage calculator to see your loan amount, and add roughly 7-8% for fees on top of your deposit.