Most buyers compare Dubai mortgages by the headline rate. For non-residents that is only part of the picture. Processing fees, insurance, fixed periods and early settlement terms can change the real cost by thousands of dirhams a year. This guide uses one illustrative bank proposal from October 2026 to show how three offers for the same loan compare.
All numbers are indicative and taken from a sample proposal. Banks change rates, fees and policies without notice, and every case is assessed individually. Treat this as a planning guide, not an offer.
The example: AED 2 million resale property, non-resident buyer
The proposal was for a salaried non-resident buying a resale property for AED 2,000,000 with a 50% down payment (AED 1,000,000), a AED 1,000,000 loan and a 25-year term. Three banks were shown side by side.
Rates and monthly payments
| Option | Rate | Fixed period | Monthly payment |
|---|---|---|---|
| Bank A | 4.99% | 3 years | AED 5,840 |
| Bank B | 5.49% | 3 years | AED 6,135 |
| Bank C | 5.99% | 2 years | AED 6,437 |
The payment gap between the cheapest and the most expensive option is about AED 600 per month, or roughly AED 7,200 per year. After the fixed period each bank moves to its follow-on rate, which is based on EIBOR plus a margin, so the payment can change. A shorter fixed period means you meet the new rate sooner.
Insurance changes the picture
Insurance is easy to overlook, but the three banks priced it very differently:
| Option | Life insurance (at the start) | Property insurance | Approx. total per month |
|---|---|---|---|
| Bank A | AED 250 per month | AED 0 | AED 6,090 |
| Bank B | AED 117 per month | AED 1,200 per year | AED 6,352 |
| Bank C | AED 1,650 per year | AED 1,200 per year | AED 6,674 |
Totals are our estimate: monthly payment plus insurance spread evenly over 12 months. Life insurance is calculated on the outstanding loan, so it falls over time. Even after adding insurance, the cheapest option stays about AED 580 per month below the most expensive one.
Upfront costs on top of the down payment
- Dubai Land Department fee: 4% of the price plus AED 580 (AED 80,580)
- Mortgage registration: 0.25% of the loan plus AED 290 (AED 2,790)
- Transfer centre fee: AED 4,200
- Bank processing fee: AED 5,200 to AED 10,500 (0.52% to 1.05% of the loan)
- Valuation fee: AED 2,625 to AED 3,150
- Real estate agent: 2% of the price including VAT (AED 42,000)
Total upfront fees came to AED 137,395 to AED 143,220, which is about 7% of the property price. With the AED 1,000,000 down payment, the cash needed was roughly AED 1.14 million. Government fees are the same whichever bank you choose. The bank fees are where the options differ.
Processing fees: ask what applies to your purchase
The cheapest option charged a processing fee of 0.52% (AED 5,200) on this resale, against 1.05% (AED 10,500) at the other two. The sample proposal also noted that this bank charged no processing fee on handover transactions, so the type of purchase matters. Always ask whether a fee is waived, capped or has a minimum for your situation.
Early settlement and overpayments
In all three offers the early settlement fee was 1% of the outstanding loan or AED 10,000, whichever is lower. The allowance for partial overpayments without a fee differed: up to 30% of the loan per year at one bank, 25% at another and 15% at the third. If you plan to repay early or refinance when the fixed period ends, this can matter as much as the rate.
How long it takes
As a rough guide, pre-approval takes 20 to 30 days and the final offer letter another 10 to 15 days. After that come account opening, disbursement and cheque preparation, and then the property transfer is scheduled. A pre-approval is typically valid for 30 to 90 days, depending on the bank. Timelines vary by bank and by your profile.
What to ask every bank
- What is the rate, the fixed period and the follow-on rate (EIBOR plus what margin)?
- What is the processing fee for my type of purchase, and is there a minimum?
- How much do life and property insurance cost, and how are they charged?
- What is the early settlement fee and how much can I overpay each year?
- How long is the pre-approval valid?
To test your own numbers, use our free Dubai property calculator. For eligibility, loan-to-value limits and documents, read our guide to Dubai mortgages for non-residents. If you are still choosing a route, see how to buy property in Dubai as a foreigner. Before you reserve a property, read our nine checks before you reserve a Dubai property as a non-resident.
Disclosure: Tom Dubai may receive a referral fee from a mortgage partner if you obtain a mortgage through an introduction from this site. This does not affect the price you pay, and it does not influence any bank’s credit decision, valuation or approval. Tom Dubai keeps full editorial control over its articles.