Real estate taxes, also known as property tax, are not typically included in the mortgage payment itself. However, some lenders may require borrowers to escrow funds for property taxes as part of the mortgage agreement. This means that a portion of the monthly mortgage payment is set aside by the lender to cover property taxes, which are then paid directly to the relevant authorities on behalf of the borrower.
When using a mortgage calculator in Dubai, individuals should consider property taxes as part of their overall housing expenses. While the calculator primarily focuses on estimating mortgage payments based on factors like loan amount, interest rate, and loan term, it’s essential to factor in additional costs such as property taxes to get a comprehensive understanding of the total housing expenses.