Remortgaging in the UAE: How to Refinance Your Dubai Property Mortgage

Why Homeowners Remortgage in Dubai

Securing a Lower Interest Rate

Dubai mortgages are predominantly structured on EIBOR-linked variable rates or fixed rates for an initial period of two to five years, reverting to a variable rate thereafter. Borrowers who locked in fixed rates at 5–6% during the 2022–2023 EIBOR peak are now exiting those fixed periods. With fixed rates trending lower from late 2024, a material rate differential may justify refinancing. Current rates vary by lender, loan size, and borrower profile and should be confirmed directly with the prospective bank.

Switching Between Fixed and Variable Rates

A fixed-rate mortgage provides payment certainty; a variable rate, when EIBOR is declining or stable, can result in lower total interest cost. The decision to switch depends on the prevailing rate environment, the length of fixed period available, and the borrower's risk tolerance. Both structures fall under the CBUAE regulatory framework governing mortgage products.

Who Can Remortgage in Dubai?

UAE Residents — Nationals and Expatriates

Resident property owners with an existing registered mortgage are generally eligible to remortgage, subject to satisfying the receiving bank's credit and income requirements. Standard eligibility parameters across UAE banks typically include a minimum monthly income of AED 10,000–15,000, a satisfactory Al Etihad Credit Bureau profile, a valid UAE residence visa, and — for expatriates — ownership in a designated freehold area. Age limits at the date of final repayment are set by individual lenders in accordance with their own risk management policies, following the removal of the CBUAE's blanket age ceiling under Decision No. 96/2019.

Step-by-Step Remortgage Process in Dubai

The following eight steps cover the complete remortgage workflow, from initial assessment through to DLD registration.

Step 1 — Assess Your Current Mortgage

Obtain the full details of your existing facility: outstanding balance, current interest rate, remaining term, and whether you are within a fixed-rate lock-in period. Early settlement during a fixed period may trigger contractually agreed break costs in addition to the statutory settlement fee cap, depending on your mortgage agreement. Review the contract before initiating the process.

Step 2 — Compare New Mortgage Offers

Obtain indicative offers from at least three lenders. Compare: interest rate and structure (fixed or variable), initial fixed period length, processing fees, overpayment flexibility, and the LTV applied to the refinanced amount. The LTV for a refinance is calculated on the current market value established by independent valuation — not the original purchase price.

Worked example — refinancing an outstanding balance of AED 1,500,000:

Early settlement fee: AED 10,000 (1% = AED 15,000; cap applies) Property valuation: approximately AED 3,000 New bank processing fee (0.5%): AED 7,500 DLD discharge fee: AED 1,000 DLD registration fee (0.25%): AED 3,750 Title deed issuance (discharge + registration): AED 500 Trustee office fee — registration: AED 4,200 (incl. 5% VAT) Trustee office fee — release: AED 315 (incl. 5% VAT) Knowledge and innovation fees: AED 40 Indicative total: approximately AED 30,305

This is an illustrative estimate. Actual costs depend on the final loan amount, the bank's processing fee, the valuation outcome, and insurance requirements. Figures are correct as at the date of publication; DLD fees and regulatory requirements are subject to change.

From 1 February 2025, the CBUAE directed that DLD fees and brokerage commissions must be paid upfront and cannot be incorporated into the mortgage loan. All remortgage-related DLD and trustee fees must therefore be funded from the borrower's own resources at the point of transaction. Property owners preparing to remortgage can contact EGSH for a breakdown of the applicable DLD and trustee fees specific to their transaction.

Common Mistakes to Avoid When Remortgaging

Focusing exclusively on the interest rate. A lower headline rate does not guarantee a better outcome if total transaction costs and the break-even timeline are not factored in. The rate differential must be assessed net of all fees over the intended holding period.

Overlooking fixed-period exit provisions. The CBUAE's statutory settlement cap of 1% or AED 10,000 applies to most residential mortgages, but individual contracts may specify additional break costs during a fixed-rate period. Review existing mortgage terms before assuming the cap is the only cost of exit.

Ignoring valuation risk. The new lender's LTV is applied to the current appraised value, not the original purchase price. If the property has not appreciated as assumed, the LTV may limit the maximum loan below the outstanding balance, requiring a capital contribution to complete the refinancing.

Remortgaging for Non-Residents

Non-residents holding property in Dubai's freehold market can access remortgage products, but face tighter constraints than residents. The number of UAE-licensed banks actively financing non-residents is limited. LTV ratios are typically capped at 50–60%. Documentation requirements include notarised or certified income evidence from the country of residence and international bank statements covering a minimum of six months.

Where the borrower cannot attend the DLD transaction in person, a notarised and attested power of attorney authorising a UAE-based representative is required. This document must be legalised in the borrower's country of residence and attested through the applicable UAE diplomatic channel before it can be used domestically.

Non-resident remortgage transactions typically take eight to twelve weeks from application to DLD completion, compared with four to eight weeks for residents. Borrowers outside the UAE should factor this timeline into any planning dependent on the availability of refinanced funds.

Frequently Asked Questions

How much does it cost to remortgage in Dubai?

Total costs typically fall in the range of AED 25,000–45,000 for a mortgage in the AED 1,000,000–2,000,000 range. Key components include the early settlement fee (capped at 1% of the outstanding balance or AED 10,000, whichever is lower, under CBUAE Decision No. 96/By Circulation/2019), the DLD mortgage discharge fee (AED 1,000), the DLD mortgage registration fee (0.25% of the new loan amount), title deed issuances (AED 250 each), trustee office fees, property valuation, and the new bank's processing fee. From 1 February 2025, all DLD and transaction fees must be paid upfront and cannot be incorporated into the new loan.

Can I transfer my mortgage to another bank in the UAE?

Yes. A mortgage buyout is a standard transaction in the UAE. It requires settling the outstanding balance with the existing lender (subject to the early settlement fee cap under CBUAE Decision No. 96/By Circulation/2019), discharging the registered mortgage charge at the DLD, and registering the new lender's charge in the same session at a DLD-authorised Real Estate Registration Trustee Centre such as EGSH.

What is the early settlement fee for mortgages in the UAE?

Under CBUAE Decision No. 96/By Circulation/2019, the early settlement fee for a home loan is capped at 1% of the outstanding balance or AED 10,000, whichever is lower. This cap applies to both full and partial early repayments. Individual mortgage agreements may specify lower fees. Borrowers should confirm the applicable charge with their current lender.

Can non-residents remortgage property in Dubai?

Yes, though options are more limited. A smaller number of UAE banks serve non-residents. LTV ratios are typically capped at 50–60%, documentation requirements are more extensive (notarised income evidence, certified bank statements), and a power of attorney is required if the owner cannot attend in person. The process typically takes eight to twelve weeks.

How long does the remortgage process take in Dubai?

For UAE residents, the end-to-end process typically takes four to eight weeks. For non-residents, eight to twelve weeks. The DLD procedures themselves take 10–15 minutes for the mortgage release and 20–25 minutes for the registration, as published by the DLD.

Is it worth remortgaging in the UAE?

Whether remortgaging is worthwhile depends on the rate differential, total transaction cost, and the intended remaining period of ownership. Divide total remortgage costs by the monthly saving to determine the break-even period. If the borrower intends to retain the property beyond that period, the remortgage is likely to produce a net financial benefit. A rate differential of 0.5% per annum or more, with a remaining term of three or more years, will generally justify the analysis.

What documents do I need to remortgage in Dubai?

For the DLD mortgage registration stage, the DLD requires: a letter from the new mortgagee bank; three mortgage contracts certified by the bank and signed by both parties; UAE ID for residents (for identification purposes), or a passport copy for non-resident foreign nationals; and an E.NOC from the developer where applicable. The new bank will separately require income documentation, bank statements, a credit check, and a property valuation report from a RERA-approved or RICS-registered firm.

Can I release equity from my Dubai property through remortgaging?

Yes. A cash-out refinance allows the borrower to take a new loan larger than the outstanding balance, with the difference disbursed as funds. The new loan is subject to the CBUAE's LTV limits — up to 85% for UAE nationals on properties valued at or below AED 5 million, and up to 80% for expatriates on properties valued below AED 5 million, per Circular No. 31/2013 as amended — applied to the current appraised value. The same DLD discharge and registration procedure applies.

What is the DLD fee for mortgage transfer between banks?

A mortgage transfer at the DLD involves two procedures. The discharge of the existing mortgage charge carries a DLD fee of AED 1,000 plus AED 250 for an updated title deed. Registration of the new mortgage charge costs 0.25% of the new loan amount plus AED 250 for title deed issuance, AED 10 knowledge fee, and AED 10 innovation fee per drawing. The trustee office fee for the registration component is AED 4,000 + 5% VAT for properties above AED 500,000; the release component carries a trustee fee of AED 300 + 5% VAT.

Can I switch from a variable rate to a fixed rate mortgage in the UAE?

Yes. Switching rate type is achievable through a remortgage with the existing lender (where offered as a product amendment) or with a new lender via a mortgage buyout. The switch should be evaluated against total transaction costs and the break-even period, as DLD and bank fees apply regardless of the motivation.

Official Sources and References

The following official government authorities were consulted in the preparation of this article.

• Central Bank of the UAE (CBUAE) — Federal authority responsible for banking regulation, mortgage lending standards, and consumer protection in the UAE financial sector.
• CBUAE Rulebook — Regulations Regarding Mortgage Loans (Circular No. 31/2013, as amended by Board Resolution No. 96/2019 and Board Resolution No. 31/2/2020) — Federal regulatory framework governing LTV ratios, Debt Burden Ratio, maximum tenor, and Sharia-compliant mortgage provisions.
• CBUAE Decision No. 96/By Circulation/2019 — Federal decision capping early settlement fees on home loans at 1% of the outstanding balance or AED 10,000, whichever is lower.
• Dubai Land Department (DLD) — Emirate of Dubai authority responsible for property registration, mortgage registration, and mortgage release.
• DLD — Mortgage Registration Application — Procedure, required documents, and fees for registering a mortgage in Dubai.
• DLD — Mortgage Release Application — Procedure, required documents, and fees for discharging a mortgage in Dubai.

Important Notice

The information in this article is provided for general informational purposes and reflects official sources as at the date of publication. Fees, regulatory requirements, and procedural steps are subject to change by the relevant UAE government authorities without prior notice. This article does not constitute legal, financial, or mortgage advice. All mortgage applications, eligibility assessments, and transaction costs are subject to the policies of the relevant bank and the determinations of the Dubai Land Department. Borrowers are advised to verify all applicable fees and requirements directly with their bank, the DLD, and the Central Bank of the UAE before proceeding with any remortgage transaction.