Abu Dhabi mortgage
Learn about the fees you need to consider when taking out a mortgage in Abu Dhabi.
General mortgage fees
When taking out a mortgage loan anywhere in the world it’s essential to budget in for extra fees, in addition to the down payment (aka the cash deposit) and subsequent monthly mortgage payments. Getting a mortgage loan in Abu Dhabi is no exception. The required mortgage costs in Abu Dhabi are typically lower than those in neighboring Dubai, which include Dubai Land Department (DLD) fees and title deed fees. Homebuyers in Abu Dhabi are still advised to budget around 5% of the purchase price of their property to put towards additional taxes and fees.
So what are these additional fees we’re talking about? There are land department fees, including the transfer fee, mortgage registration fee, and title deed fee, trustee registration fee, and real estate agency fee. Here are estimates of the general mortgage costs in Abu Dhabi (excluding the 5% VAT):
Land department transfer fee: 2% of the purchase price plus AED 580
Mortgage registration fee: 0.1% - 0.25% of the mortgage loan amount plus AED 290
Title deed registration: AED 1,000
Trustee fee: AED 4,000
Real estate agent fee (if applicable): 2% of the purchase price
Bank purchasing fees
There are also some fees that can vary based on the bank and the borrower's residency. First, we’ll look at the bank purchasing fees for UAE nationals and residents, including the minimum down payment, bank processing fee, valuation fee, and bank arrangement fee.
The minimum down payment is typically 15% of the purchase price for nationals and 20% for resident expats, but some banks have stricter conditions regarding down payments as specified in the table. Bank processing fees cover loan underwriting, processing, and issuing, including document preparation and appraisal review. Banks also order and charge for a property valuation with a corresponding valuation certificate as part of their mortgage application requirements. Less commonly, banks may have an additional fixed fee known as an arrangement fee. The table below shows the specific mortgage costs that each bank charges in Abu Dhabi.
All of the banks listed below also have a bank service fee of AED 5,250 for UAE nationals and residents.
Bank | Minimum down payment | Bank processing fee (% of loan amount) | Bank valuation fee | Bank arrangement fee |
|---|---|---|---|---|
Emirates NBD | 15 - 20% | 0.50% | AED 3,150 | n/a |
HSBC | 20% | 0.25% | AED 2,625 | n/a |
First Abu Dhabi Bank (FAB) | 15-20% | 0.50% | AED 3,150 | n/a |
First Abu Dhabi Bank Islamic | 15-20% | 0.50% | AED 3,150 | n/a |
Abu Dhabi Commercial Bank (ADCB) | 15-20% | 0.75% | AED 3,150 | n/a |
RAKBank | 20% | 0.50% | AED 1,943 | n/a |
United Arab Bank (UAB) | 20% | 0.50% | AED 3,150 | n/a |
Mashreq | 15% | 0% | AED 2,625 | n/a |
Commercial Bank of Dubai (CBD) | 15-25% | 0.50% | AED 3,150 | n/a |
Abu Dhabi Islamic Bank (ADIB) | 15-25% | 0.50% | AED 2,625 | n/a |
Standard Chartered Bank (SCB) | 25% | 0% | AED 3,150 | n/a |
National Bank of Fujairah (NBF) | 15-20% | 0.50% | AED 2,625 | n/a |
Dubai Islamic Bank (DIB) | 15-20% | 0% | AED 2,625 | n/a |
Arab Bank (AB) | 15-20% | 0% | AED 2,625 | n/a |
Ajman Bank | 15-20% | 1% | AED 3,150 | n/a |
Emirates Islamic Bank (EIB) | 15-20% | 1% | AED 2,625 | AED 1,050 |
Sometimes, banks have special offers to eliminate specific fees or they will refund the arrangement and/or valuation fee after loan disbursement (i.e. once you receive the full loan amount).
Bank purchasing fees for non-resident borrowers
Now let’s consider the same fees but for banks offering loans to non-resident borrowers. Fewer banks offer mortgages to non-residents.
All of the banks listed below also have a bank service fee of AED 7,500 for non-residents.
Bank | Minimum down payment | Bank processing fee (% of loan amount) | Bank valuation fee | Bank arrangement fee |
|---|---|---|---|---|
Emirates NBD | 20% | 0% | AED 3,150 | n/a |
First Abu Dhabi Bank (FAB) | 35% | 1% | AED 3,150 | n/a |
RAKBank | 20% | 1% | AED 1,943 | AED 1,050 |
Mashreq | 50% | 1% | AED 2,625 | AED 1,050 |
Commercial Bank of Dubai (CBD) | 40% | 1% | AED 3,150 | n/a |
Abu Dhabi Islamic Bank (ADIB) | 50% | 0.50% | AED 2,625 | n/a |
Dubai Islamic Bank (DIB) | 25% | 1% | AED 2,625 | AED 1,500 |
HSBC | 40% | unknown | AED 2,625 | unknown |
As you can see, banks typically have higher down payment requirements and fees for non-resident buyers.
The next steps to property ownership
Having a better understanding of the general fees and bank-specific fees, you can start to figure out what you can actually afford and determine your budget. Our mortgage calculator can help you estimate monthly payments and your overall payment schedule when considering a variety of properties. You can also get help from our mortgage experts at Kredium that know the UAE real estate market inside and out and have experience helping UAE nationals, resident expats, and non-residents finance their dream property.
Kredium has a portfolio of over 5,000 properties in Dubai from all of the largest UAE real estate developers. You can also check out our helpful UAE blogs on mortgage pre-approval, mortgage tenure, fixed and variable mortgage rates, mortgage rejection reasons, and credit scores.
Register on our website to see all the ways we can help you along your journey to property ownership in the UAE!
Photo credits:
Photo by Abid Bin Nazar | Pexels
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