When planning to
In Dubai, closing costs include the land department fee, property registration fee, real estate agency fee, mortgage processing fee, property valuation fee, mortgage registration fee, etc. These closing costs can amount to 5-7 per cent of the unit’s value. For example, if the property you’ve eyed for yourself costs AED1 million, the closing costs can reach up to AED70,000, thus making these charges a substantial part of the overall deal value. But you can save some on these extra costs if you do your homework before finalizing a mortgage.
Here’s
Compare
Given that closing costs rate mostly depends on government and legal fees amount, which is non-negotiable, some fees can still be cut down through negotiation. These include mortgage processing fees, home inspection fees, insurance fees etc., which need to be paid to the lender or a third party. Compare different offers and choose one that can help you in saving your costs in every way.
Getting a mortgage estimate from two or more lenders can help you in comparing these charges. Once you get the loan estimate, watch attentively through every fee that is going to be charged. Check if there are any optional fees added.
Negotiate with the lender
Once you’ve studied different financing proposition from different banks or developers, you can ask for decreasing these costs. Usually, the lender will provide you with some discounts or offers and may even take on some fees of part of them. Negotiating can become easier if you are already an existing customer of that particular financial institution.
Negotiate with the seller
There are
Purchasing a home in Dubai may be one of the biggest deals you’ll close in your life, thus finding ways to save can make a huge difference in a long term.
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IMEX REAL ESTATE BROKER LLC, UAE
Office 2502, Marina Plaza, Dubai Marina, Dubai, UAE
Email: pm@IMEXre.com