Costs & fees
What fees do I need to pay when getting a mortgage?
Getting a UAE mortgage itself typically involves a bank arrangement fee (0-1% of the loan), a valuation fee (around AED 2,500-3,500), the DLD mortgage registration fee (0.25% of the loan + AED 290), and mandatory life and property insurance. These are separate from the DLD transfer fee and agency commission on the property purchase itself.
Bank and mortgage-specific fees
These are the costs directly tied to arranging the loan, as distinct from the broader property purchase costs:
| Fee | Typical amount | When paid |
|---|---|---|
| Bank arrangement fee | 0-1% of the loan amount | On approval / disbursement |
| Valuation fee | AED 2,500-3,500 | Before final approval |
| Mortgage registration fee | 0.25% of the loan + AED 290 | At registration with DLD |
| Life insurance | ~0.4-0.8% of loan per year | Annually, added to instalment |
| Property insurance | ~0.03-0.05% of property value per year | Annually |
| Early settlement fee (if applicable) | 1% of balance or AED 10,000, whichever is lower | Only on early payoff/refinance |
Worked example on a AED 1,600,000 loan
On an AED 1,600,000 mortgage (80% of a AED 2,000,000 property), the arrangement fee could range from AED 0 (waived) to AED 16,000, the valuation fee is typically AED 2,500-3,500, and mortgage registration works out to AED 4,290 (0.25% + AED 290). Together, the upfront bank-side fees typically land between roughly AED 6,790 and AED 23,790, before ongoing annual insurance premiums are added.
How these differ from purchase-side costs
The 4% DLD transfer fee, agency commission (~2%) and trustee office fee (~AED 4,200) relate to the property transaction itself, not the mortgage — see the full acquisition cost breakdown with a worked example for those figures. Keeping the two categories separate helps you understand which costs are genuinely comparable between banks (arrangement fee, rate) versus which are fixed regardless of lender (DLD, trustee).
Questions worth asking each bank
- Is the arrangement fee negotiable or currently waived for any promotion?
- Can the arrangement fee be added to the loan rather than paid upfront, and what does that cost in extra interest?
- Is life insurance mandatory through the bank's own scheme, or can I use my own approved policy?
- What is the exact valuation fee and who selects the valuer?
Reducing your total fees
Since the arrangement fee alone can range from 0% to 1% of the loan, comparing offers before committing to a bank can save you thousands of dirhams. Use the mortgage calculator to see the full picture, and check current mortgage rates if you're already in a mortgage with high fees.
Run the numbers on your own case
Free Lenddoo tools and guides related to this article.
Last reviewed 16 July 2026