DLD Mortgage Registration Fee: An overview
The DLD Mortgage Registration Fe e is a significant fee that applies to property purchases in Dubai. When financing a property purchase through a mortgage, this fee is payable by at least two parties: the borrower and the lender. In this article, you will learn everything you need to know about the DLD Mortgage Registration Fee, including the basis of calculation, payment methods and relevant regulations.
What is the DLD Mortgage Registration Fee?
The DLD Mortgage Registration Fee is a government fee that is payable when registering a mortgage with the Dubai Land Department (DLD). This registration is required to ensure that the lender is legally protected and that the mortgage can be enforced against the property.
How is the fee calculated?
The DLD Mortgage Registration Fee is usually a percentage of the mortgage amount. The standard rate is 0.25% of the loan amount.
- Example: For a mortgage of AED 500,000, the fee is AED 1,250.
It is important to take this fee into account in the financing plan, along with other costs such as ancillary purchase costs.
When is the DLD Mortgage Registration Fee due?
The fee is due as soon as the mortgage agreement is signed and the documents are submitted to DLD for registration. Payment can usually be made directly at the DLD office or online via the Dubai Land Department website.
Important information on the DLD Mortgage Registration Fee
- Payment can be made by either the buyer or the seller, depending on the terms agreed in the purchase contract.
- The DLD Mortgage Registration Fee is non-refundable.
- In addition to the registration fee, further costs may be incurred, such as the fee for registering the title deed (/lexikon/eigentumsurkunde-title-deed/).
Tax aspects of the DLD Mortgage Registration Fee
The DLD Mortgage Registration Fee is generally not tax deductible. Buyers should be aware of their tax obligations and may need to consult a tax advisor.
Conclusion
The DLD Mortgage Registration Fee is an essential part of buying property in Dubai that is often overlooked. A thorough understanding of this fee and the associated costs is crucial to avoid any nasty surprises during the buying process. Consider whether you also need a property valuation to ensure that your financing solutions meet your requirements.
Illustrative example on the topic: DLD Mortgage Registration Fee
Let’s say Sarah wants to buy a flat in Dubai that costs AED 1,000,000. To finance her dream flat, she applies for a mortgage for AED 800,000. Before she can sign the purchase contract, Sarah has to pay the DLD Mortgage Registration Fee. The fee is 0.25% of AED 800,000, which amounts to AED 2,000. This is an additional cost that she needs to consider when planning her finances. Sarah is also assessing the possibility of using a property agent to guide her through the process.
