Property Finance
Mortgages on Dubai Property
Overview
A mortgage in Dubai is not a private arrangement between borrower and bank. It is registered against the property at the Dubai Land Department, and it appears on the record. That has two practical consequences that shape everything on this page.
First, the register is where the truth is. Under Dubai Law No. 7 of 2006 a disposition of real property has no validity unless registered, and entries carry absolute evidentiary value. A charge that is registered restricts the owner; a discharge that has not been registered has not, in the eyes of the register, happened. Checking the record rather than the paperwork is the first step in any mortgage matter.
Second, a mortgaged property cannot simply be sold. The charge has to be released for title to transfer, which means the settlement figure, the lender's release process and the sequencing of payment on the day all have to be established before a completion date is agreed. Transfers abort at the counter over this more often than over anything else.
The Land Department registers several forms of mortgage — ordinary, usufruct, provisional and portfolio — and the applicable form depends on what is being charged and at what stage. For a unit that is not yet complete, the charge relates to an interest in the Interim Real Property Register rather than to a registered title.
Jurisdiction: Dubai, United Arab Emirates.
Discuss Your Property Matter
Tell us what has happened, the documents you hold and the dates involved. Our Dubai property law team will review the details and explain the options that may be open to you.
Registering a Mortgage: Process, Fees and Timing
Mortgage registration is a Dubai Land Department service. The figures below are taken from the Department's own published service information, checked on 29 August 2026. Published fees change; confirm the current position at the time of your transaction rather than relying on any figure found online, including this one.
| Item | As published by the DLD (checked 29 Aug 2026) |
|---|---|
| Registration fee | 0.25% of the mortgage value |
| Title deed issuance | AED 250 per title deed |
| Knowledge and innovation fees | AED 10 per drawing |
| Service partner fee — ordinary mortgage | AED 4,000 + VAT |
| Service partner fee — provisional mortgage | AED 5,000 + VAT |
| Channels | The Land Department's online mortgage system, or a Real Estate Registration Trustees Centre |
| Published processing time | 20–25 minutes |
Mortgage types the Department registers: ordinary, usufruct, provisional and portfolio. Which applies depends on what is being charged and at what stage — a provisional mortgage is the form used where the property is not yet a completed, separately titled unit.
What is typically required for an individual applicant: a letter from the mortgagee bank; certified copies of the mortgage contract; UAE identification or passport; the developer's electronic certificate where the property is provisional; and a power of attorney where a representative attends. Where the bank submits electronically, its requirements are narrower.
As with transfer, the published processing time is the counter transaction. What governs the overall timetable is the lender's own conditions, the valuation, and any translation or legalisation of documents executed abroad.
Selling a Mortgaged Property
The most common mortgage matter we deal with, and the one that most often derails a completion.
The charge has to be released before title can transfer. That is not a formality carried out on the day; it is a process with a settlement figure, a lender's procedure and a timetable, and all three have to be established before a completion date is agreed.
- Get the settlement figure as at the intended completion date, together with any early settlement charge, and check how long the figure remains valid.
- Establish the lender's release process — what it requires, in what order and how long it takes. This differs between institutions and is not negotiable.
- Decide how the settlement is funded: from the buyer's funds, from the seller's own resources, or through a mechanism the parties agree in writing.
- Sequence the day so that no party gives value before receiving what they are entitled to, and record what happens if a step fails after money has moved.
- Confirm the discharge is registered, not merely agreed. Until the release appears on the record, the charge is still there.
Where the settlement figure exceeds the sale price, the shortfall has to be resolved before the transaction proceeds at all. That is a different conversation and it is better had at the outset than three weeks before a completion date. See the closing process.
Buying With a Mortgage
A buyer's lender is a third party to the transaction with its own requirements and its own pace, and the contract has to accommodate that rather than assume it.
- Approval in principle is not an offer, and an offer is not necessarily unconditional. Establish which you actually hold before agreeing dates.
- The mortgage condition belongs in the contract. Without it, a buyer whose finance is withdrawn is in default rather than released — see sale and purchase agreements.
- Valuation risk. If the lender values the property below the agreed price, the difference has to come from somewhere. Better discovered early than at completion.
- Offer validity. Offers expire, and a transaction that slips may need re-application on different terms.
- Registration of the new charge happens at the same appointment as the transfer, and the lender's representative attends.
- Read the loan documents, not only the rate. Early settlement charges, the rate reset mechanism, and the consequences of default are the terms that matter over the life of the loan.
Mortgages on Off-Plan and Provisional Property
Where the unit is not yet a completed, separately titled property, the charge does not sit on a title deed. It relates to the interest recorded in the Interim Real Property Register, and the Land Department registers it as a provisional mortgage.
- The underlying interest must exist and be registered. Under Article 3 of Dubai Law No. 13 of 2008 a disposition of an off-plan unit is void unless recorded in the Interim Real Property Register — there is nothing to charge if that entry was never made.
- The developer's electronic certificate is part of what the Department requires for a provisional mortgage.
- The service partner fee differs — AED 5,000 plus VAT for a provisional mortgage against AED 4,000 plus VAT for an ordinary one, as published and checked on 29 August 2026.
- At handover the position converts. When title is registered in the Real Property Register, the charge has to be dealt with accordingly. This is a step, not an automatic consequence, and it should be planned for.
- Where the project is delayed or stops, a buyer with a mortgage has two problems rather than one, and the loan obligations do not pause because the developer has. See off-plan property in Dubai.
Refinancing and Changing Lender
Refinancing is two transactions that have to be sequenced: the discharge of the existing charge and the registration of the new one.
- Get the settlement figure and the early settlement charge in writing from the existing lender before committing to a new one. The charge is frequently the reason a refinance does not pay.
- Compare the whole cost, not the headline rate: registration fees on the new charge, the early settlement charge, valuation and arrangement fees.
- Establish the mechanics between the two lenders and who does what on the day.
- Confirm the old charge is actually released on the record once the refinance completes. An owner who assumes this has been done can find years later, at the point of sale, that it was not.
- Where the property is tenanted or the ownership structure has changed since the original loan, expect the new lender to raise it.
The same applies to a mortgage amendment — a change of term, amount or parties is registered against the property, and the record should be checked afterwards.
When You Cannot Keep Up the Payments
This is the section people look for and rarely find written honestly, so we will state the position rather than the reassurance.
Act before default, not after. The options available to a borrower who approaches their lender while still performing are materially wider than those available after arrears have accumulated. Waiting rarely improves anything.
What is worth doing, in order:
- Establish the actual position: the outstanding balance, the arrears, what the loan documents say about default, and what has been formally communicated to you.
- Open a documented conversation with the lender about restructuring, a payment plan or a term extension. Whether any is available is a matter for the lender; having the conversation on the record is within your control.
- Consider a sale on your own terms while you still control the timing, rather than losing control of it later.
- Take advice before signing anything the lender puts in front of you, including a restructuring or a settlement.
- Deal with correspondence. Ignoring formal notices does not delay anything and it removes arguments you might otherwise have had.
What we will not do is tell you an outcome is guaranteed, predict what a lender or a court will decide, or publish figures for what enforcement costs or how long it takes. Those depend on the loan, the institution and the facts.
Checking the Register: What Owners Get Wrong
Almost every mortgage problem we see could have been identified from the record, and the record is quick to obtain.
- A discharge that was never registered. The loan was repaid years ago, the borrower moved on, and the charge is still on the record — discovered at the point of sale, when it stops the transfer.
- A charge the current owner did not know about, particularly where the property was acquired through a company or under a power of attorney.
- An attachment or blocking entry unrelated to the mortgage, which will also stop a transfer.
- A mortgage amendment that was agreed but never registered.
- Details that do not match — amount, parties or property identifiers — between the loan documents and the register entry.
Our advice to any owner of mortgaged property in Dubai is simple: check the register entry once, now, rather than for the first time when you are trying to sell. See Dubai Land Department matters.
Company-Held Property, Powers of Attorney and Non-Resident Borrowers
Three situations that add requirements to every step above.
Company-held property. Where a company owns the property, the borrowing and the charge are authorised by the company rather than by the individual attending. Current trade licence, memorandum, the resolution authorising the mortgage, and evidence of signatory authority are all required, and any restriction in the constitutional documents has to be checked before terms are agreed.
Powers of attorney. The instrument has to authorise this specific transaction for this property, be in force on the day, and not have been revoked. Registering or discharging a mortgage under a power that is too narrow will be refused. Where granted abroad, notarisation, legalisation and legal translation are generally required and take longer than people expect.
Non-resident borrowers. Lending terms, documentation and identification requirements differ, and every payment instruction will reach you electronically — verify account details through a channel you initiated yourself, never one supplied in an email or message, and re-verify before funds move.
What We Do on a Mortgage Matter
- Obtain and read the register entry before anything else, so advice is given on the recorded position rather than the remembered one.
- Read the loan documents — not only the rate, but the early settlement charge, the default provisions, the rate reset mechanism and any restriction on letting or selling.
- Establish the settlement figure and the lender's release process before a completion date is agreed with anybody.
- Sequence the transaction so that discharge, payment and transfer happen in an order that protects each party.
- Attend the appointment and confirm documents, payees and the order of events with all parties beforehand.
- Verify the registration afterwards — that the new charge is on the record and the old one is off it.
- Where there is difficulty, establish the position, put the conversation with the lender on the record, and advise on the options honestly, including where a sale on your own terms is the better answer.
Where This Page Fits
- The property closing process. How discharge, payment and transfer are sequenced on the day.
- Sale and purchase agreements. The mortgage condition and the clauses that govern the timetable.
- Dubai Land Department matters. Registration, the record and the current published fees.
- Property due diligence. Checking for charges, attachments and blocking entries before you buy.
- Off-plan property in Dubai. Provisional mortgages and the Interim Register.
- Property valuation. Where a lender's valuation is in issue.
- Property disputes in Dubai. Enforcement against property and attachment orders.
Official Legal Sources
Every legal statement and every published figure on this page is taken from an official source, and the fee figures are dated. Where a figure could not be verified it is not published, and no enforcement costs, timescales or lending terms are stated here.
| Instrument or body | Relevance to this page | Official source |
|---|---|---|
| Dubai Law No. 7 of 2006 concerning Real Property Registration | A disposition has no validity unless registered; absolute evidentiary value of the register — why a charge or a discharge only counts once recorded | Dubai Legislation |
| Dubai Law No. 13 of 2008 on the Interim Real Property Register | Article 3 — an off-plan disposition is void unless registered; the interest a provisional mortgage attaches to | Dubai Legislation |
| Dubai Decree No. 31 of 2016 on Mortgaging Granted Lands in Dubai | The specific regime applying to granted lands, which is narrower than the general position described on this page | Dubai Land Department |
| Dubai Land Department — Mortgage Registration service | Mortgage types (ordinary, usufruct, provisional, portfolio); the fee schedule and 20–25 minute processing time reproduced above; documentation and channels. Figures checked 29 August 2026. | Dubai Land Department |
Legislation last checked against official sources: 28 August 2026. Published fees and processing time last checked: 29 August 2026. Jurisdiction: Dubai, United Arab Emirates.
Common Questions Before You Borrow
Points worth settling before terms are agreed rather than after.
- Can you own the property at all? Under Dubai Law No. 7 of 2006 ownership is restricted by reference to status, with non-nationals able to own in the designated areas. Eligibility comes before finance.
- Personal name or a company? It changes the lending terms, the documentation, what passes on death and how a future sale works.
- What does the loan restrict? Some facilities limit letting the property, altering it, or selling within a period.
- What is the early settlement charge? The number that decides whether refinancing later will be worth doing.
- What happens on default, and what notice you are entitled to.
- How is the rate set and reset? A rate that changes on a mechanism you have not read is a term you have not agreed.
- What are the total registration costs? The published Land Department figures are set out above with the date checked.
Mortgages in Dubai — Frequently Asked Questions
How is a mortgage registered on a Dubai property?
Through the Dubai Land Department, either via its online mortgage system or at a Real Estate Registration Trustees Centre. As published and checked on 29 August 2026 the fees are 0.25% of the mortgage value, AED 250 per title deed issuance, AED 10 per drawing in knowledge and innovation fees, and a service partner fee of AED 4,000 plus VAT for an ordinary mortgage or AED 5,000 plus VAT for a provisional one. The Department publishes a processing time of 20–25 minutes. Published fees change — confirm the current position at the time of your transaction.
What types of mortgage does the Land Department register?
Ordinary, usufruct, provisional and portfolio. Which applies depends on what is being charged and at what stage. A provisional mortgage is the form used where the property is not yet a completed, separately titled unit — the charge then relates to the interest recorded in the Interim Real Property Register rather than to a registered title.
Can I sell a property that still has a mortgage on it?
Yes, but the charge has to be released before title can transfer, and that is a process rather than a formality on the day. Establish the settlement figure as at completion and any early settlement charge; the lender's release process and how long it takes; how the settlement is funded; and the order of events on the day, so no party gives value before receiving what they are entitled to. An undischarged mortgage whose settlement figure was never established is the most common reason a transfer appointment is aborted.
What if the mortgage settlement figure is more than the sale price?
The shortfall has to be resolved before the transaction proceeds at all, and that conversation is far better had at the outset than three weeks before an agreed completion date. It is not a reason not to sell, but it is a reason to establish the numbers and the funding before committing to a buyer and a date.
My mortgage was repaid years ago. Do I need to do anything?
Check that the discharge was actually registered. This is one of the most common problems we see: the loan was repaid, the borrower moved on, and the charge is still on the record — discovered at the point of sale, when it stops the transfer. Under Dubai Law No. 7 of 2006 the register carries absolute evidentiary value, so a release that was agreed but never recorded has not, so far as the register is concerned, happened. Checking takes very little time and is worth doing now rather than when you are trying to sell.
Do I need a mortgage condition in my purchase contract?
Yes, if you are borrowing. Without one, a buyer whose finance offer is withdrawn or delayed is in default under the agreement rather than released from it. Note also that approval in principle is not an offer and an offer is not necessarily unconditional — establish which you hold, and check its validity period, because a transaction that slips may need re-application on different terms.
What happens if the lender values the property below the price I agreed?
The difference has to be funded from somewhere, because the lender will lend against its own valuation rather than your price. It is much better discovered early, which is one reason valuation should be arranged as soon as terms are agreed rather than close to completion. Whether the agreement gives you any relief in that situation depends on how the mortgage condition is drafted.
How does a mortgage work on an off-plan unit?
As a provisional mortgage, because there is no completed title to charge. The charge relates to the interest recorded in the Interim Real Property Register — and under Article 3 of Dubai Law No. 13 of 2008 there is nothing to charge if that entry was never made. The Department requires the developer's electronic certificate for a provisional mortgage, and the service partner fee is higher than for an ordinary one. At handover the position has to be converted when title is registered; that is a step to plan for, not an automatic consequence.
Is refinancing worth it?
Compare the whole cost rather than the headline rate: the early settlement charge on the existing loan, registration fees on the new charge, and valuation and arrangement fees. The early settlement charge is frequently the number that decides it, so get it in writing from the existing lender before committing to a new one. Afterwards, confirm the old charge has actually been released on the record — an owner who assumes it was can discover years later, at the point of sale, that it was not.
I am struggling to make my mortgage payments. What should I do?
Act before default rather than after, because the options available to a borrower who is still performing are materially wider. Establish the actual position — outstanding balance, arrears, what the loan documents say about default, and what has been formally communicated. Open a documented conversation with the lender about restructuring or a payment plan; whether one is available is for the lender, but having the conversation on the record is within your control. Consider a sale on your own terms while you still control the timing. Take advice before signing anything the lender puts in front of you, and deal with formal correspondence rather than ignoring it.
Can you tell me what will happen if I default?
No, and we would be wary of anyone who claims to. We do not predict what a lender or a court will decide, we do not guarantee outcomes, and we do not publish figures for what enforcement costs or how long it takes — those depend on the loan, the institution and the facts. What we can do is establish your actual position from the loan documents and the register, tell you honestly what options exist, and say where a sale on your own terms is the better answer.
Does a mortgage restrict what I can do with the property?
It can. Some facilities restrict letting the property, altering it, or selling within a defined period, and those terms are in the loan documents rather than in the headline offer. They matter for an investor buying to let, and for anyone planning a renovation. Read the documents before signing, not when the restriction becomes a problem.
What if the property is owned by a company?
The borrowing and the charge are authorised by the company, not by the individual attending. Expect to produce the current trade licence, memorandum, the resolution authorising the mortgage, and evidence of signatory authority — and check the constitutional documents for any restriction before terms are agreed. Where an attorney acts, the power of attorney must authorise this specific transaction for this property, be in force, and not have been revoked; one that is too narrow will be refused at the counter.
What We Ask You to Send
- The title deed, or for an off-plan unit the Initial Sale Contract and the Interim Real Property Register entry.
- The loan agreement and any offer letter, in full including the schedules.
- The most recent statement, and a settlement figure if you have requested one.
- Correspondence with the lender, particularly any formal notice.
- The sale or purchase agreement, if there is a transaction in progress.
- Any power of attorney to be relied on, and company documents where a company is a party.
- Passport and Emirates ID for the parties instructing us.
Send what exists rather than waiting for a complete set. The first thing we do is obtain the register entry ourselves, so advice is given on the recorded position rather than the remembered one.
Mortgages Where the Property Is Let
An investment property carries an extra layer, and lenders take an interest in it.
- Check whether the facility permits letting at all, and on what terms. Some restrict it, and a borrower who lets in breach has a problem with the lender rather than with the tenant.
- The tenancy survives a sale. A buyer of a mortgaged, tenanted property takes it subject to the lease and to Law No. 26 of 2007 as amended by Law No. 33 of 2008, and their lender will want to know the position.
- Rental income relied on for the borrowing should be evidenced by the tenancy contract and Ejari registration, not by projection.
- Recovering possession is a statutory process, not a lender matter: twelve months' notice served by Notary Public or registered mail under Article 25(2), with Article 26 restricting re-letting afterwards where recovery was for personal use.
Scope of This Page
This page describes the registration, transfer and discharge of mortgages over property in Dubai, and the practical position of an owner or buyer dealing with one. It is general information about how the process works, not advice on your matter, and it is not financial advice: we do not recommend lenders, products or whether borrowing is appropriate for you.
Fee figures are reproduced from the Dubai Land Department's published service information with the date they were checked. Published fees change, and any figure found online — including on this page — should be confirmed at the time of your transaction. Where a figure could not be verified against an official source, it is not published here at all.