What is residual financing when buying properties in the UAE?

Residual financing refers to a mortgage product that allows buyers to finance additional costs associated with purchasing a property, beyond just the purchase price. When buying a property, buyers typically incur extra expenses such as 4% land department fees and 2% brokerage fees.

Some banks in the UAE offer to cover up to 80% of these additional fees within the mortgage term. This financing option is specifically available for new property purchases, making it easier for buyers to manage upfront costs.