Question 1

What is mortgage refinancing (remortgaging) in Dubai?

Accepted Answer

Refinancing, or remortgaging, replaces your existing home loan with a new one, to secure a lower rate, switch fixed to variable, shorten or extend the term, or release built-up equity as cash. It can be done with your current bank as a product switch, or by moving to a new lender, which is called a buyout.

Question 2

When does refinancing a Dubai mortgage actually make sense?

Accepted Answer

Usually when the new rate is at least 0.5 to 0.75% lower than your current one and you'll keep the property 2+ more years, when your fixed period ends and reverts to a high variable rate, or when your property has appreciated and you want to release equity. Divide total switching costs by the monthly saving to find your break-even point. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 3

What is a mortgage buyout, and does the new bank pay off my old loan?

Accepted Answer

A buyout transfers your mortgage from one UAE bank to another offering better terms. The incoming bank settles your outgoing loan directly, registers a new mortgage with the DLD, and you receive an updated title deed showing the new lender. It typically takes 3 to 5 weeks for salaried residents, and 6 to 10 weeks for self-employed or non-residents.

Question 4

How much does a mortgage buyout cost in Dubai?

Accepted Answer

Expect roughly AED 28,720 to 36,220 on a AED 1.5M balance. Costs include the early settlement fee (max 1% or AED 10,000), DLD registration at 0.25% of the new loan, DLD discharge AED 1,000, a valuation of AED 2,500 to 3,500, trustee fee around AED 4,200, title deed AED 250, plus the new bank's 0.5 to 1% processing fee. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 5

How much is the early settlement fee when I refinance early?

Accepted Answer

The UAE Central Bank caps the early settlement fee at 1% of your outstanding balance or AED 10,000, whichever is lower, under Decision No. 96/2019. Your contract can specify less, but never more. Note that breaking out during a fixed-rate lock-in period may add contractual break costs on top of this statutory cap. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 6

What is equity release or cash-out refinancing?

Accepted Answer

Equity release, done through a cash-out refinance, lets you borrow against the risen value of your property. You take a new mortgage larger than your current balance and receive the difference in cash. For example, if your home is now worth AED 2M and you owe AED 800k, you can unlock a portion of that AED 1.2M gap. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 7

Up to what LTV can I release equity on my Dubai property?

Accepted Answer

Banks typically lend up to 75 to 80% of current value for residents, and around 60 to 70% for non-residents. Under Central Bank caps, expats can borrow up to 80% on a first property under AED 5M and 60% on a second. Importantly, the cap applies to the total new mortgage, not just the cash you're releasing. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 8

Can I use released equity to buy a second property?

Accepted Answer

Yes — releasing equity from one property to fund the deposit on another is one of the most common uses. The Central Bank generally restricts equity-release proceeds to buying further UAE real estate or home improvements, and banks often require funds paid straight to the vendor. Note LTV on a second property is lower, around 60%. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 9

How do equity release rates compare to the returns?

Accepted Answer

Equity-release rates in the UAE average around 4%, while Dubai rental yields commonly run 5 to 10%, which is why investors use released equity to buy income properties. One broker reported a 34% jump in equity-release transactions in 2024. Returns aren't guaranteed, though, and you are adding debt secured against your own home. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 10

Can equity release help fund a Golden Visa?

Accepted Answer

Indirectly, yes. You can release equity from an existing property to buy an additional home worth at least AED 2M, which meets the property threshold for a 10-year Golden Visa. Because Central Bank rules allow equity proceeds to be used for further UAE property purchases, this route works, but confirm the qualifying rules with your bank first. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 11

What fees apply when refinancing, beyond the settlement fee?

Accepted Answer

Besides the early settlement fee, budget for DLD mortgage registration at 0.25% of the new loan plus about AED 290, a DLD discharge fee of AED 1,000, a RERA-approved valuation of AED 2,500 to 3,500 plus VAT, trustee fees around AED 4,200, title deed AED 250, and the new bank's 0.5 to 1% arrangement fee. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 12

Can I add the refinancing fees to my new loan?

Accepted Answer

No. Since 1 February 2025, all DLD fees and brokerage commissions must be paid upfront in cash and can no longer be rolled into the mortgage. Budget for the full switching cost separately, typically AED 25,000 to 45,000 on a AED 1M to 2M mortgage, before you start the process. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 13

Can I refinance or release equity on an off-plan property at handover?

Accepted Answer

Some UAE banks offer buyout-plus-equity programmes once your off-plan property completes and is titled with the DLD. You can refinance the developer payment plan into a standard mortgage and, if the value has risen, release equity at the same time. Approval typically takes 4 to 6 weeks, and some banks require the property held for 12 months first.

Question 14

What is a top-up loan, and how is it different from a buyout?

Accepted Answer

A top-up, or further advance, means borrowing more from your current lender against your property's increased value, without moving banks. It avoids a full buyout's DLD discharge and re-registration costs, but you stay on your existing bank's rates. A buyout, by contrast, moves the whole loan to a new lender to secure a genuinely better deal.

Question 15

How long does refinancing take in Dubai?

Accepted Answer

A bank-to-bank buyout usually takes 3 to 5 weeks for salaried residents, extending to 6 to 10 weeks for self-employed or non-resident borrowers. Cash-out refinances run around 3 to 6 weeks, with bank credit approval alone taking 5 to 10 working days. The DLD registration itself is quick, roughly 15 to 20 minutes at a trustee centre.

Question 16

What documents do I need to refinance a Dubai mortgage?

Accepted Answer

Typically your passport and UAE visa, Emirates ID (both sides), 3 to 6 months of bank statements, a salary certificate or audited financials, your existing mortgage statements and liability letter, the original title deed, a developer NOC where applicable, and proof of residence. The new bank will also order a fresh RERA-approved property valuation.

Question 17

What is a liability letter and why is it needed to switch banks?

Accepted Answer

A liability letter, issued by your current bank, states your exact outstanding balance, the applicable early settlement fee, and any closure conditions. The incoming bank requires it before issuing a final offer, since it confirms the payoff figure. It is usually valid for only 15 to 30 days, so the buyout must complete within that window.

Question 18

What happens if the new valuation comes in lower than I owe?

Accepted Answer

If the fresh valuation is below your outstanding balance, you're in negative equity and cannot complete a straight buyout. Your options are to top up the shortfall with personal cash, negotiate a partial settlement with your current bank, or defer the switch until values recover. This is why a realistic valuation matters before you apply.

Question 19

Can I break a fixed-rate mortgage early to refinance?

Accepted Answer

You can, but fixed-rate deals often carry higher exit costs during the lock-in period. Beyond the Central Bank's 1% or AED 10,000 early-settlement cap, your contract may impose extra break costs. Always check your agreement's fixed-period terms, because it is sometimes cheaper to wait until the fixed rate reverts before switching lenders. (Figures here are indicative as of July 2026 and set by third parties (government, banks, developers) — confirm the current amount before relying on it.)

Question 20

Are UAE mortgages portable to a new property?

Accepted Answer

Generally no. UAE home loans are tied to the specific property that secures them, so there is no true porting to a new home as in some other markets. Selling means settling the existing mortgage, and buying a new property means arranging a fresh one. To change lenders on the same property, you use a buyout instead.

💳 Refinancing & Equity