FOR PROPERTIES SOLD FOR LESS THAN AED5 MILLION EXPATS MUST PAY A MINIMUM DEPOSIT OF 25 PERCENT OF THE PURCHASE PRICE

The days of feverish speculation have long gone, making Real Estate Companies in Dubai among the world's most volatile. Today, end users dominate the market and rely on mortgage borrowing to help finance their purchases. There are many variables to consider for potential borrowers: From the upfront costs to deciding on the length of the mortgage and whether to opt for a variable or fixed interest rate. Expats must pay a minimum deposit of 25% of the purchase price for properties sold for less than AED5 million, in accordance with UAE Central Bank rules. In addition to this down payment, in Dubai you will need an additional four percent transfer fee (less in other emirates) plus a mortgage registration fee of 0.25 percent based on the amount of the loan. Usually, you can pay two percent real estate commission in all emirates, a valuation charge from AED 2,500 to AED 3,000 and also a loan establishment fee of up to one percent of the value of the loan. However, the...