The world of mortgages, with its intricate details and nuances, can often feel like a vast ocean waiting to be explored. As we’ve journeyed together through this expansive realm, we’ve charted the waters of key terms and concepts, making the unfamiliar familiar. 

In our previous segments, we’ve laid the foundation, and now, as we venture into Part 3, we’ll dive deeper, uncovering more layers of understanding. Each term we explore not only adds to our knowledge but also brings us closer to mastering the art of home financing in Dubai.


1. FOL 

A final offer letter is a formal document provided by the lender, outlining the specific terms and conditions of your mortgage, finalizing your agreement. It’s a good practice to keep a record of this offer letter since it’s a key document for your mortgage and relation with the bank. 


2. Partial Settlement fee

Banks in Dubai post a fixed period, if offered to you, allow you to make a partial settlement from 10%-20% on your mortgage outstanding per year. For this, the bank charges you a settlement fee if it’s paid higher than the 10%-20% allowed by them for that particular year. The fee would either be 1% or AED10,000, whichever is lower. 


3. Early Settlement Fee

An early settlement fee is when you make a settlement of your entire mortgage relationship with a bank through either selling your property or buyout of your mortgage with another bank; you could also use your own funds to pay off your mortgage. The fee would either be 1% or AED10,000, whichever is lower. 


4. Mortgage Registration Fee

This fee covers the cost of registering your mortgage with the Dubai Land Department. For mortgages in Dubai, the land department charges 0.25% of the loan value. 


5. Registration Trustee Fee 

The Dubai land department has official trustee offices where you can complete a sale/registration of a property. These trustee offices charge a fee of AED 4000 with an additional 5% VAT for these services. If the property value is below AED 500,000, the trustee fee would be AED 2000 with an additional 5% VAT. 

Parting Thoughts- With every term we decode, the once-intimidating world of mortgages becomes a little less daunting. The insights we’ve gained in this segment further illuminate our path, ensuring that we’re not just observers but active participants in our mortgage journey. As we gear up for the final leg of our exploration, remember that every piece of knowledge acquired is a step towards making confident and informed decisions. So, gear up and join us as we conclude our series in “The A-Z of Mortgages in Dubai: Part 4.”