When a Dubai property purchase is financed by a bank, the mortgage is registered with the Dubai Land Department as a charge on the title. Registration triggers its own fee, separate from and additional to the 4% transfer fee.
The fee is 0.25% of the mortgage amount, plus an AED 290 administration fee. The percentage applies to the loan, not the property price. On an AED 1,125,000 loan, the fee is AED 2,812.50 plus AED 290 — AED 3,102.50 in total. On an AED 1,600,000 loan, AED 4,000 plus AED 290. The fee applies whenever a new mortgage is created, and to the incremental amount when an existing mortgage is increased or restructured. Finance provided by the Mohammed bin Rashid Housing Establishment operates under separate provisions.
The mortgage is normally registered at the same trustee office appointment as the transfer itself — the bank prepares the documentation and the buyer signs and pays. When sale and mortgage are registered on the same day, the registrar’s fees on the mortgage component are exempted; a mortgage registered on a separate day attracts its own trustee service fee. Coordinating bank timelines toward same-day registration avoids that additional charge.
Like all DLD charges, the mortgage registration fee is paid upfront and cannot be rolled into the loan. On a financed purchase, the 4% transfer fee, the trustee fee, fixed admin charges, and this fee are all cash costs at completion — the calculator itemises them from the loan amount and price. When a mortgaged property is later sold or the loan repaid, discharging the registration involves separate mortgage release fees.