Find out about mortgage valuation and its associated fees from banks in the UAE.

Why is valuation necessary during the mortgage process?

A property valuation is the property’s monetary value estimated by trained specialists (known as valuers) based on the inspection of a property. Valuers analyze features and factors such as size, location, and condition, and write up a detailed report stating the market value with supporting information regarding their determination. 

If you’re looking to finance a property purchase with a mortgage in the UAE, you will more than likely need to get a property valuation, also known in this case as a mortgage valuation. When you take out a mortgage from a bank or lender, the property acts as collateral for the loan. Banks order a property valuation to ensure that the property is actually worth the amount of money the borrower intends to pay, and therefore could be sold to repay the loan in case the borrower defaults (i.e. fails to repay the loan). 

Mortgage valuation occurs after the buyer is pre-approved for a loan and once they sign a purchase contract with the seller outlining the purchase price and conditions. As part of loan processing, the bank orders a
valuation company to carry out the mortgage valuation. Once the valuer examines the property and submits the valuation report, the bank continues with mortgage processing and underwriting to present the buyer with a final loan offer. The final loan amount that a bank will offer depends on either the valuation or the purchase price, whichever amount is lower. 

You can learn more about the factors that influence property value, the contents of the valuation report, and the other real estate scenarios that may require a valuation by reading our comprehensive property valuation blog.

UAE banks - mortgage valuation fees

Getting a mortgage valuation comes with a fee for the property examination and corresponding valuation certificate. Each bank has its own set fee that the buyer must pay for the valuation.
Bank Bank valuation fee
Emirates NBD AED 3,150
HSBC AED 2,625
First Abu Dhabi Bank (FAB) AED 3,150
First Abu Dhabi Bank Islamic AED 3,150
Abu Dhabi Commercial Bank (ADCB) AED 3,150
RAKBank AED 1,943
United Arab Bank (UAB) AED 3,150
Mashreq AED 2,625
Commercial Bank of Dubai (CBD) AED 3,150
Abu Dhabi Islamic Bank (ADIB) AED 2,625
Standard Chartered Bank (SCB) AED 3,150
National Bank of Fujairah (NBF) AED 2,625
Dubai Islamic Bank (DIB) AED 2,625
Arab Bank (AB) AED 2,625
Ajman Bank AED 3,150
Emirates Islamic Bank (EIB) AED 2,625

Some banks will refund the mortgage valuation fee after the loan is finalized and the borrower receives the full loan amount.

Moving forward

Now you know the importance of mortgage valuation and what fees you can expect from banks in the UAE. This is a necessary step in the mortgage process that you can now anticipate and budget for. Once you find a property, but before you sign an agreement with the seller, it’s helpful to use a mortgage calculator to estimate your monthly payments and payment schedule. 

A mortgage broker like Kredium can guide you through the entire mortgage process and help you easily compare loan offers from multiple banks in the UAE. Not only do we have helpful articles to familiarize yourself with the mortgage process and UAE real estate market, but we have a property search engine with thousands of options from the top real estate developers in Dubai. Contact us or sign-up on our website to get in touch with our mortgage experts.
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