In addition to the down payment, you'll have to pay different upfront fees, which may amount to 7% of the property's worth—looking to purchase a home in Ajman? We completely understand! But before you do, you should know the fees associated with such an investment. To assist you in making your decision, we've put up a short guide that includes all the essential upfront fees so you can make an informed decision about whether purchasing a home in Ajman is the correct thing to do.

What Is The True Cost Of Purchasing Property In Ajman?

Several rules are in place to safeguard buyers and sellers in the Ajman real estate industry. As a result, in addition to the down payment, you'll have to pay various upfront fees, which can amount to 7% of the property's worth. Fortunately, some banks will let you finance a portion of these expenses. More on it in a moment. For the time being, below is a breakdown of the upfront expenditures associated with purchasing property in Ajman:

Ajman Property Upfront Costs

  • Fee charged by Ajman Land Department (3 % of the property purchase price plus AED 500 admin fee)
  • Ajman Land Department charges a mortgage registration cost (0.25% of the loan amount + AED 290).
  • Fee for a real estate agent (2% of property value + 5% VAT)
  • Fee for bank processing (up to 1% of loan amount + 5% VAT)
  • Property registration charge (AED 2,000 + 5% VAT for properties under AED 500,000.
  • Properties worth more than AED 500,000: AED 4,000 + 5% VAT)
  • Property valuation fee (between AED 2,500 and AED 3,500 plus 5% VAT)

What If I Cannot Pay The Additional Fees?

If you're having trouble coming up with the extra money needed to cover the 7% in additional fees, you're in luck! A few banks provide 'free financing,' which allows you to borrow up to 85% (resident) or 80% (non-resident) of the 4% Ajman Land Department and 2% Real Estate Agency Fees. This corresponds to 5.1% and 4.8% more loans, respectively. This payment is added to your mortgage and reimbursed over the life of the loan.

Fees For Purchasing Off-Plan Property In Ajman

The 2% ALD charge will apply to customers contemplating off-plan property in Ajman. In addition, the buyer must pay AED 500 to the ALD for the initial title deed.

How Can I Prevent Having To Pay Broker Fees?

A standard mortgage broker typically charges you AED 5,000 + VAT, or up to 0.5% of the property value.