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Mortgage Transfer in Dubai: What It Is and What It Costs
Transferring a mortgage to another bank in Dubai involves settling an existing home loan with one lender and registering a new mortgage with a replacement lender through the Dubai Land Department (DLD). This procedure is commonly referred to as a mortgage buyout or refinancing.
The CBUAE caps the early settlement fee at 1% of the outstanding balance or AED 10,000, whichever is lower, under Regulation No. 29/2011 as amended by Board Resolution No. 96/2019. For a borrower with an outstanding balance of AED 1 million, the maximum exit penalty is therefore AED 10,000. This cap replaced the previous 3% threshold that applied between June 2018 and October 2019 and made the cost-benefit calculation for switching lenders considerably more favourable. The DLD registers the mortgage transfer at an authorised Real Estate Services Trustee Centre or through the department's electronic mortgage system. The registration itself takes 15–20 minutes once all banking formalities are complete.
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Why Transfer Your Mortgage to a Different Bank
Mortgage buyouts became substantially more common in the UAE after the CBUAE reduced the early settlement fee cap in October 2019. Property owners transfer their mortgage to another bank primarily to secure a lower interest rate, switch from a variable-rate to a fixed-rate structure, or renegotiate the loan tenor.
Interest rates in the UAE are commonly linked to the Emirates Interbank Offered Rate (EIBOR), which fluctuates in response to global monetary policy and domestic liquidity conditions. When EIBOR declines or when competing banks introduce more competitive fixed-rate packages, borrowers who originally locked in at higher rates may find that the aggregate savings over the remaining loan term exceed the costs of switching. A difference of 0.5% on a 20-year mortgage can produce savings of several hundred thousand dirhams, depending on the outstanding principal.
A mortgage transfer may also serve borrowers who wish to switch from a conventional mortgage to a Sharia-compliant product (or vice versa), consolidate a variable-rate exposure into a predictable fixed instalment, or move to a lender that offers features such as offset accounts and flexible overpayment terms. A higher property valuation from the incoming bank can also improve the loan-to-value (LTV) ratio on a future refinancing. Borrowers holding properties registered on the Interim Register should also consider whether the transfer affects their Oqood registration status.
A mortgage transfer to another bank must be distinguished from a mortgage assignment to a new buyer. A mortgage assignment occurs when a property is sold and the buyer assumes or replaces the seller's mortgage obligation. The procedure for selling a mortgaged property follows a different DLD registration pathway and involves additional steps such as property blocking and ownership transfer. Owners who need to verify their current mortgage status before initiating a transfer can request a property status inquiry through the DLD system. A mortgage transfer between banks does not change the property's ownership. Only the identity of the mortgagee (the lending institution) is updated in the DLD register.
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Legal Framework Governing Mortgage Transfers in Dubai
Three principal pieces of legislation regulate the mortgage transfer process in Dubai. Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai governs the Real Property Register, including the recording of encumbrances such as mortgages. Law No. (14) of 2008 Concerning Mortgages in the Emirate of Dubai establishes the requirements for creating, registering, and terminating mortgages over real property and property units. For off-plan properties registered on the Interim Register, Law No. (13) of 2008 Regulating the Interim Real Property Register applies.
Under Law No. (14) of 2008, a mortgage is valid only when registered with the DLD. The mortgagee (lender) must be a bank, finance company, or financial institution duly licensed and registered with the CBUAE to provide property financing in the UAE. When a mortgage is transferred from one bank to another, the DLD cancels the outgoing bank's mortgage record and registers a new mortgage in favour of the incoming bank. The Real Property Register, or the Interim Register in the case of Oqood properties, then reflects the current security holder.
The early settlement fee applicable to the outgoing bank's loan falls under federal banking regulation. The CBUAE's amended Appendix 2 of Regulation No. 29/2011 caps this fee at 1% of the outstanding balance or AED 10,000, whichever is lower, for individual home loan customers. Any bank that imposes a higher charge is in breach of this regulation.
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Step-by-Step Process for Transferring a Mortgage to Another Bank
The mortgage transfer process requires coordination between the borrower, the outgoing bank, the incoming bank, and the DLD. The complete procedure typically takes three to five weeks from application to registration. Cases involving self-employed borrowers or non-residents may require six to ten weeks.
Step 1 — Review Your Current Mortgage Terms
Obtain a full summary of your existing loan. This summary should include the outstanding principal, current interest rate, remaining tenor, rate reset date (if on a fixed-rate introductory period), and any contractual conditions around early repayment. This information allows accurate comparison with alternative offers.
Step 2 — Compare Offers and Apply for Pre-Approval
Approach competing banks or work with a mortgage broker to obtain indicative rate sheets. Once you identify a suitable offer, submit a formal buyout application to the incoming bank. The bank will conduct a credit assessment, verify income documentation, and check your debt burden ratio against CBUAE requirements.
Step 3 — Property Valuation
The incoming bank commissions a property valuation through a RERA-registered valuation company. The valuation determines the current market value of the property and confirms the applicable LTV ratio. Valuation reports are typically valid for approximately 30 days. The borrower pays the valuation fee, which generally ranges from AED 2,500 to AED 3,500 depending on the property type and the bank's appointed valuator.
Step 4 — Obtain a Liability Letter from the Outgoing Bank
Request a liability letter from your current bank. This document confirms the outstanding mortgage balance, the applicable early settlement fee, and any conditions for loan closure. The liability letter is typically valid for 15–30 days. The incoming bank requires this letter before it can issue a final offer.
Step 5 — Final Offer and Loan Acceptance
The incoming bank issues a final offer letter once it receives the valuation report and the liability letter. The offer details the new loan amount, interest rate, repayment schedule, and associated fees. Review the terms carefully and sign the mortgage contract.
Step 6 — Settlement and Mortgage Transfer Registration at the DLD
The incoming bank settles the outstanding loan with the outgoing bank and pays the early settlement fee on the borrower's behalf. Banks typically incorporate this amount into the new loan or deduct it from the disbursement. Once settlement is confirmed, the outgoing bank issues a no-objection letter confirming the release of its mortgage rights. The incoming bank then submits the mortgage transfer application to the DLD for registration.
The DLD registration can be completed either electronically through the bank's online mortgage system or in person at an authorised Real Estate Services Trustee Centre such as EGSH. When processed through a trustee centre, the registration takes 15–20 minutes and results in an updated title deed or statement certificate reflecting the new mortgagee.
Step 7 — Receipt of Updated Title Deed
Upon completion, the DLD issues an updated title deed (or usufruct title deed, statement certificate, or provisional Oqood record, depending on the property type) showing the new bank as the registered mortgagee. All subsequent transactions, including sale, additional refinancing, mortgage release, visa applications, and inheritance matters, must rely on this updated record.
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Common Reasons a Mortgage Transfer May Be Rejected
Not all mortgage transfer applications proceed smoothly. The DLD or the incoming bank may reject the application under several circumstances.
A legal hold or court attachment registered against the property prevents any mortgage modification until the hold is lifted. Outstanding service charges or developer disputes flagged on the DLD system can also cause delays. If the incoming bank's valuation produces a figure significantly lower than the outstanding loan amount, the resulting LTV breach under CBUAE limits will prevent the buyout unless the borrower covers the gap from personal funds. Document mismatches between the DLD records and the submitted application require correction before the transfer can proceed. Common mismatches include discrepancies in the owner's name, title deed details, or property identification numbers.
The outgoing bank must fully release its mortgage rights before the DLD will register the incoming bank's mortgage. If the outgoing bank delays issuing the no-objection letter or the liability letter, the process stalls. Under CBUAE regulations, banks must provide these documents without undue delay. In practice, borrowers should allow five to ten business days for processing.
Role of an Authorised Real Estate Services Trustee Centre
Mortgage transfer registration at the DLD can be completed either electronically through the bank's online system or in person at an authorised Real Estate Services Trustee Centre. EGSH is an authorised DLD Real Estate Services Trustee Centre that processes mortgage transfer registrations directly through the DLD system at standard government fees. The registration procedure at EGSH follows a defined sequence. The consultant verifies all submitted documents against DLD requirements, enters the transaction details into the DLD system, collects the applicable government fees and service partner charges, and issues the updated title deed or statement certificate reflecting the new mortgagee. The in-person registration process takes 15–20 minutes and results in immediate issuance of the updated registration documents via email.
Processing the mortgage transfer through a trustee centre is particularly useful when the bank's electronic system encounters audit delays or when the borrower requires real-time confirmation of the registration for time-sensitive purposes such as a subsequent sale registration or visa application linked to the property. For borrowers whose mortgage transfer is part of a broader refinancing strategy that also involves registering a new mortgage on different terms, EGSH also processes standard mortgage registration applications through the same DLD-connected system.
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Frequently Asked Questions
What is the maximum early settlement fee when transferring a mortgage to another bank in Dubai?
The CBUAE caps the early settlement fee for home loans at 1% of the outstanding mortgage balance or AED 10,000, whichever is lower. This cap applies to all licensed banks and finance companies in the UAE under the amended Appendix 2 of Regulation No. 29/2011.
How much does the DLD charge for mortgage transfer registration?
The DLD charges 0.25% of the new mortgage amount as a registration fee. Additional charges include AED 250 for title deed issuance, AED 10 knowledge fee, and AED 10 innovation fee per title deed. The trustee centre service fee is AED 4,000 plus 5% VAT for ready properties or AED 5,000 plus 5% VAT for Oqood properties.
Can I transfer my mortgage if the property is registered under Oqood?
Yes. The DLD's mortgage transfer service covers all property types, including provisional mortgage transfer applications for properties registered on the Interim Register (Oqood). An electronic No Objection Certificate (eNOC) from the developer, obtained through the Dubai REST App, is required for off-plan units.
How long does the mortgage transfer process take?
The full process from application to DLD registration typically takes three to five weeks. The DLD registration itself takes 15–20 minutes at an authorised trustee centre. Banking procedures, including valuation, credit assessment, and inter-bank settlement, occupy the majority of the timeline.
Does the property need to be revalued when transferring a mortgage?
Yes. The incoming bank requires a fresh property valuation conducted by a RERA-registered valuation company. The valuation establishes the current market value and determines the applicable LTV ratio under CBUAE regulations. Valuation reports are typically valid for approximately 30 days.
Can I transfer a Sharia-compliant mortgage to a conventional bank?
Yes. The DLD mortgage transfer procedure is the same regardless of whether the outgoing or incoming mortgage product is conventional or Sharia-compliant. The borrower must meet the incoming bank's eligibility criteria for the chosen product type.
What happens if the new valuation is lower than my outstanding loan balance?
If the valuation produces an LTV ratio exceeding the CBUAE cap for the borrower's category, the incoming bank cannot fund the full buyout amount. The borrower would need to contribute personal funds to bridge the difference, negotiate with the outgoing bank for a partial settlement arrangement, or defer the transfer until property values improve.
Explained by
Randa Sameer
Real Estate Services Trustee Consultant at EGSH
Randa Sameer has over three years of experience supporting Dubai Land Department transactions and real estate registrations. Her professional focus includes compliance with DLD regulations, ownership transfers, and trustee documentation.
Official Sources and References
The following government authorities and regulatory bodies are cited in this article.
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Dubai Land Department (DLD) — The government authority responsible for regulating and registering all real estate transactions, mortgage registrations, and property records in Dubai.
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Central Bank of the UAE (CBUAE) — The federal authority regulating banks, finance companies, and financial institutions in the UAE, including mortgage lending standards, LTV ratios, and early settlement fee caps.
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CBUAE Rulebook — The repository of CBUAE regulations, including Regulation No. 29/2011 and Circular No. 31/2013 on mortgage loan standards.
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Dubai Legislation Portal — The official portal for accessing Dubai emirate-level legislation, including Law No. (7) of 2006, Law No. (13) of 2008, and Law No. (14) of 2008.
Important Notice
The information in this article is provided for general guidance purposes and reflects regulations and fee structures applicable as of early 2026. Government fees, banking policies, interest rates, and regulatory requirements may change without prior notice. Final approval of any mortgage application is at the discretion of the relevant bank and is subject to the borrower meeting all eligibility criteria. The Dubai Land Department retains authority over all property registration matters. Readers are advised to verify current requirements directly with the DLD, the CBUAE, their chosen bank, and an authorised Real Estate Services Trustee Centre before proceeding with a mortgage transfer.
