UAE Tightens Mortgage Rules: What Homebuyers Need to Know
Starting February, the UAE has implemented significant changes to mortgage regulations, specifically affecting the financing of Dubai Land Department (DLD) and real estate broker fees. This move is expected to increase the upfront costs for prospective homebuyers, bringing notable implications for the real estate market. Stay Updated, Subscribe our WhatsApp Channel Key Changes in the New Rules Previously, many banks in the UAE included the DLD registration fee and broker commissions within the overall mortgage package. However, under the new regulations, these fees will no longer be financed as part of the mortgage. Homebuyers will now need to cover these expenses out-of-pocket, in addition to the standard down payment. Here’s a breakdown of the additional costs: 4% Dubai Land Department fee : This mandatory fee applies to the property’s total value. 2% broker commission : Paid to the real estate agent facilitating the transaction. For example, on a property worth AED 1 million, ...