In the UAE, securing a mortgage involves several key steps, one of which is property valuation. This process is crucial as it determines how much a bank will lend against a property. Here’s a comprehensive guide to mortgage valuation fees across various UAE banks.
What is Property Valuation Fee?
Property valuation is the process where a trained professional, known as a valuer, assesses the monetary value of a property. This valuation considers factors like size, location, and condition. The valuation report not only influences the loan amount but also serves as an essential document for tracking your property’s value over time.
Why is Property Valuation Necessary for Mortgage in UAE?
The property acts as collateral for the mortgage loan. Banks need assurance that the property’s value matches or exceeds the loan amount for risk management. The final loan amount is based on the lower of either the valuation or the purchase price.
The Valuation Process
Step 1: Valuation happens after loan pre-approval and after signing the purchase agreement.
Step 2: Once assessed, the property’s value is documented in a report which the bank uses for underwriting the loan.
Mortgage Valuation Fees by UAE Banks
The cost of property valuation generally ranges from AED 2,500 to AED 3,500, with an additional 5% VAT. Here’s an overview of the valuation fees charged by different banks in the UAE ( including VAT 5%):
ADIB (Abu Dhabi Islamic Bank) Valuation Fee
Fee: AED 2,625
CBD (Commercial Bank of Dubai) Valuation Fee
Fee: AED 3,150
DIB (Dubai Islamic Bank) Valuation Fee
In Dubai: AED 2,500
In Other Emirates: AED 3,000
EIB (Emirates Islamic Bank) Valuation Fee
Fee: AED 2,625
ENBD (Emirates NBD) Valuation Fee
Fee: AED 3,150
FAB (First Abu Dhabi Bank) Valuation Fee
Fee: AED 3,150
Mashreq Valuation Fee
Fee: AED 2,625
NBF (National Bank of Fujairah) Valuation Fee
Fee: AED 2,650
Fee Reimbursement and Promotions
Some banks might offer to waive or reimburse part or all of the valuation fee once the mortgage is finalized. Checking with your mortgage advisor for current promotions or fee structures is advisable.
Understanding the valuation fee structure in UAE banks is essential for anyone looking to finance property through a mortgage. This knowledge not only helps in budgeting but also in choosing the right bank for your mortgage needs. Remember, these fees are subject to change, so always confirm with your bank or through a mortgage broker for the most current information.
With Capital Zone Mortgage, our specialists handle all aspects of your mortgage application, from valuation to approval. If you’re eager to buy your dream home, leverage our advanced digital platform to apply for your mortgage now.
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