Dubai Mortgage Buyers Just Lost the “Financed Fees” Shortcut: How the Upfront Cash Rule Changes What You Can Afford in 2026

Big change for Dubai mortgage buyers: if you were relying on the “finance the fees” approach to keep cash in your pocket, that option is effectively gone. A UAE Central Bank instruction means banks can no longer include key transaction fees (notably the Dubai Land Department transfer/registration fee and broker commission) inside your mortgage package. For many buyers, that’s an immediate affordability shock—because your monthly payment may look fine, but your cash-to-close just jumped.

This guide breaks down what the rule changes in practice, how it impacts your buying power in 2026, and what you can do right now to still buy smart in Dubai.

What changed: the “cash-to-close” requirement is higher

Historically, many UAE banks allowed buyers to finance certain purchase costs alongside the mortgage. Under the Central Bank instruction, banks must stop financing the DLD registration fee and broker fee as part of mortgage financing—meaning buyers must pay these separately in cash. This increases the upfront cash required on top of the down payment. ([thenationalnews.com](https://www.thenationalnews.com/business/property/2025/01/25/uae-property-mortgages-fees/))

In practical terms, buyers now need to plan for the down payment + transaction fees as liquid funds. Industry experts cited in local reporting describe this as a meaningful shift that can force buyers to reassess what they can afford—especially in the resale (secondary) market. ([thenationalnews.com](https://www.thenationalnews.com/business/property/2025/01/25/uae-property-mortgages-fees/))

The real budget impact: what to set aside (beyond the down payment)

For most Dubai purchases, the DLD transfer fee (commonly 4%) and broker commission (commonly 2%) are the headline costs that can no longer be rolled into the loan. In addition, there are other fixed and percentage-based charges that still apply in many transactions (trustee fee, mortgage registration fee, title deed fee, etc.). ([thenationalnews.com](https://www.thenationalnews.com/business/property/2025/01/25/uae-property-mortgages-fees/))

A practical rule of thumb used by many buyers is to budget 7%–10% above the purchase price for total transaction-related costs (varies by deal structure, mortgage, and admin fees). ([propertyfinder.ae](https://www.propertyfinder.ae/blog/dld-fees-dubai/))

Quick checklist (typical items to budget for):

• DLD transfer/registration fee (often 4% in practice, unless negotiated otherwise) ([propertyfinder.ae](https://www.propertyfinder.ae/blog/dld-fees-dubai/))
• Broker commission (commonly ~2% in many resale transactions) ([thenationalnews.com](https://www.thenationalnews.com/business/property/2025/01/25/uae-property-mortgages-fees/))
• DLD trustee fee (fixed fee often cited in the AED 4,200 range) ([thenationalnews.com](https://www.thenationalnews.com/business/property/2025/01/25/uae-property-mortgages-fees/))
• Mortgage registration fee (commonly 0.25% of the loan amount) ([thenationalnews.com](https://www.thenationalnews.com/business/property/2025/01/25/uae-property-mortgages-fees/))
• Title deed / admin charges (fixed amounts vary by process and property type) ([thenationalnews.com](https://www.thenationalnews.com/business/property/2025/01/25/uae-property-mortgages-fees/))

How this changes affordability (and your negotiation strategy)

This rule doesn’t necessarily change the property price—but it changes who can transact at that price point. Buyers who were stretching their cash position to enter the market may now need to:

• Lower the purchase price target to keep enough liquidity for fees
• Delay buying while building cash reserves
• Switch product type (for example, consider off-plan payment plans that spread cash out over time)

Some market commentary suggests the policy could shift demand toward off-plan and new construction where developers offer structured payment plans that reduce immediate cash pressure, while making resale purchases feel “heavier” upfront. ([thenationalnews.com](https://www.thenationalnews.com/business/property/2025/01/25/uae-property-mortgages-fees/))

Negotiation implication: if more mortgage buyers become cash-constrained, sellers of resale properties may face a smaller pool of qualified buyers at the same price—creating room to negotiate on price, payment timing, or inclusions (furnishing, service charge credits, etc.).

Off-plan vs ready in 2026: which benefits from the new reality?

Dubai ended 2025 with record quarterly sales value and strong momentum heading into 2026, with apartments dominating demand and smaller unit sizes remaining highly searched. ([arabianbusiness.com](https://www.arabianbusiness.com/industries/real-estate/dubai-property-market-posts-record-q4-with-51-1bn-in-sales-as-prices-rise))

Against that backdrop, the new upfront-cash dynamic tends to favor whichever option best matches your liquidity:

• Ready (resale) homes: best if you have strong cash reserves and want immediate rental income or end-user move-in—just plan for higher cash-to-close.
• Off-plan: can be attractive if your priority is preserving liquidity and using staged payments; however, you must assess developer quality, handover risk, and the full fee schedule.

Either way, your decision should be based on total cost of ownership (fees + financing + service charges + vacancy risk), not just the headline price.

Actionable tips: how to buy smart under the new upfront-fee rule

Use these steps to avoid last-minute surprises and strengthen your position when negotiating:

• Build a “cash-to-close” worksheet before you view properties: price, down payment, DLD, commission, trustee, mortgage registration, valuation, and buffer.
• Get a mortgage pre-approval and a fee breakdown early so you know exactly what must be paid in cash versus financed.
• Negotiate with the new constraint in mind: if you’re a qualified buyer with liquidity, you may have leverage with resale sellers who need a smooth closing.
• Compare off-plan payment plans apples-to-apples: focus on the total payable, handover timeline, and what fees are due at booking vs transfer.
• Keep a liquidity buffer for furnishing, move-in costs, and the first service charge cycle—don’t spend every dirham on closing day.

Conclusion: plan for higher upfront cash—and use it to your advantage

Dubai’s market entered 2026 with strong momentum, but the mortgage process is now more cash-intensive for buyers. If you plan properly, this doesn’t have to be a dealbreaker—it can actually become a strategy edge: buyers who understand the true cash-to-close can move faster, negotiate smarter, and avoid failed transactions.

If you want help estimating your real all-in budget (fees, financing, neighborhoods, and deal structure) and choosing the right path—off-plan vs ready—BrokeryHero can guide you through the numbers and the negotiation.