# How to finance closing costs without derailing your mortgage > Compare cash, credit cards, personal loans and Sooner for Dubai closing costs without putting your mortgage at risk. - Published: 2026-08-21 - Updated: 2026-08-23 - Category: Financing - Reading time: 10 minutes - Canonical page: https://www.joinsooner.com/blog/how-to-finance-closing-costs-dubai/ A mortgage helps pay for the home, but it usually does not cover the closing costs. You need a separate plan for Dubai Land Department fees, agency commission, bank fees and the other costs due before you get the keys. For a quick planning estimate, multiply the property price by roughly 8%. That gives you a general closing-cost allowance before you get the transaction-specific fee schedule. - **Property price:** Your expected purchase price - **Planning allowance:** Roughly 8% - **Estimated closing costs:** Property price × 8% ## Why the mortgage leaves a gap The bank approves a mortgage for a percentage of the property price. This percentage is called the loan-to-value ratio, or LTV. Closing costs are charged separately, so they need to be paid another way. There are four common options: - Pay the fees from cash savings. - Put some of them on a credit card or use a cash advance. - Apply for separate borrowing, such as a personal loan. - Use a product designed around eligible closing costs, such as Sooner. The fastest option is not always the cheapest. The cheapest-looking option is not always compatible with the mortgage. ## The easiest route: a credit card If you already have enough available credit, a card can look like the easiest option. You may not need a new application, some providers accept cards and your bank may offer an instalment plan. That ease has three problems. ### 1. The limit may not match the fee Closing costs can easily exceed AED 100,000, which is more than many card limits. Some payments also require a bank transfer, manager's cheque or another specific payment method. Check what can actually be paid by card before relying on it. ### 2. Cash advances start expensive If you withdraw or transfer money from a credit card, the bank may treat it as a cash advance. Interest can start from the transaction date, a cash-advance fee may apply and there is usually no interest-free period. ### 3. Minimum payments stretch the cost Paying only the minimum means more interest, more fees and more time in debt. Read the bank's Key Facts Statement, check the annual percentage rate (APR) after any promotion and calculate how long repayment will take. Credit card **Easy now. Expensive later.** Especially when a fee is converted to cash or the balance survives beyond a promotional period. ## The alternative built for fees: Sooner Sooner does not increase the property mortgage or replace the down payment. Subject to approval, it finances eligible closing costs separately. - Up to AED 500,000 of eligible upfront costs. - Coverage capped at 10% of the ready property's value. - Fixed monthly repayments over 60 months. - A current service fee of 7% to 9% a year, flat, on the amount covered. - The full repayment and early settlement terms shown before signing. Unlike a revolving card balance, Sooner shows you the amount financed, the fixed term, the monthly repayment and the total cost before you sign. It is planned alongside the home purchase rather than added after the mortgage is arranged. **Sooner is for eligible closing costs, not the down payment.** You still provide the down payment from acceptable resources. Sooner works alongside the mortgage and is not a bank or mortgage provider. ## Why the personal-loan shortcut is not a safe default Some agents still tell buyers to take a personal loan and continue with the purchase. That can put the mortgage approval at risk. **The CBUAE rule is explicit about the down payment.** You cannot use a personal loan or credit card for any part of the required down payment. It must come from your own resources. The rule specifically bans borrowing for the down payment. It does not say that every personal loan used only for closing costs is automatically illegal. However, the bank still has to include that loan when it checks your debts and monthly repayments. This can reduce how much you can borrow or change the mortgage approval. Do not take a personal loan simply because an agent says it is common. Tell the mortgage lender first and ask for written confirmation of how the new loan would affect your approval. ## Cash, card, personal loan or Sooner | Option | What it gets right | Main risk | | --- | --- | --- | | Cash savings | No financing cost and simplest for the lender | Can empty the reserve you need after moving | | Credit card | Fast when accepted and limit is available | High revolving cost, cash-advance charges and short promotions | | Personal loan | Fixed instalments may look predictable | Cannot fund the required down payment and can damage mortgage affordability | | Sooner | Designed for eligible closing costs with a fixed five-year plan | Separate service cost, eligibility rules and repayment commitment | There is no single best option for everyone. Cash avoids financing charges but can leave you without savings after the move. A card may work for a small amount you can repay in full. Sooner may be more suitable when the closing costs are too large to pay now and you want fixed monthly repayments. ## Before you finance any fee - Get the full fee schedule and due dates in writing. - Confirm which payment methods each recipient accepts. - Separate the down payment from every other fee. - Tell the mortgage lender about any proposed credit. - Compare the APR, flat rate, total repayment, early-settlement cost and late-payment fees. - Keep enough savings for utilities, moving and maintenance after you get the keys. This article is educational and is not legal, financial or mortgage advice. Product eligibility and terms apply. The CBUAE rule cited here addresses the source of the required down payment. A lender must consider all your debts and may apply stricter rules. Get advice for your transaction and written confirmation from your lender. ## Primary sources - [Central Bank of the UAE, Regulations Regarding Mortgage Loans](https://rulebook.centralbank.ae/en/rulebook/regulations-regarding-mortgage-loans) - [Central Bank of the UAE, Consumer Protection Standards](https://rulebook.centralbank.ae/en/rulebook/consumer-protection-standards) - [Central Bank of the UAE, credit interest computation guidance](https://rulebook.centralbank.ae/en/rulebook/article-6-interest)