Refinancing & mortgage transfers
Reviewing your existing mortgage to see whether a move to a different product or lender is worthwhile.
- Free initial conversation
- Lenders compared for you
- +971 4 871 4341
- 1%Early settlement fee capOf the outstanding balance or AED 10,000, whichever is lower
- 3–4 monthsBest time to reviewBefore your fixed-rate period ends
- Reg. + valuationNew costs to countMortgage registration, valuation and any arrangement fee
- 50%Debt-burden capThe new lender reassesses your affordability
Typical figures under UAE Central Bank rules and common lender practice. Your lender’s criteria apply; we confirm what applies to you.
Refinancing & mortgage transfers: everything you need to know
When moving your mortgage to a new rate or lender makes sense, what it costs, and how the switch works. 2 min read
Overview
Refinancing (often called a mortgage buyout in the UAE) means replacing your current mortgage with a new one — either with another bank or as a new product with your existing lender. People usually review when a fixed period is ending, when rates have moved, or when their circumstances have changed.
When switching can pay off
- Your fixed period is ending and the follow-on rate is higher than current offers.
- Rates have fallen since you took the mortgage.
- You want to change term, move from variable to fixed (or the reverse), or release equity at the same time.
- Your income has grown and you want better terms.
The costs of switching
| Cost | Typical amount |
|---|---|
| Early-settlement fee (current bank) | Capped at 1% of the balance or AED 10,000, whichever is lower |
| Mortgage registration (new loan) | 0.25% of the loan plus admin |
| Valuation | Around AED 2,500–3,500 plus VAT |
| Arrangement fee (new bank) | Up to 1% of the loan plus VAT — sometimes waived |
Compare these costs with the saving over the period you expect to keep the mortgage. Many lenders contribute towards switching costs in promotions, which can change the maths.
A quick comparison
On an AED 1,600,000 balance over 25 years, moving from 5.49% to 4.49% lowers the payment from about AED 9,816 to about AED 8,884 a month — roughly AED 930 less. If switching costs come to around AED 20,000, the saving covers them in under two years.
How the switch works
- 1Review your current terms
We read your offer letter and liability letter: balance, rate, fixed period and settlement terms.
- 2Compare offers
We compare total cost over a realistic period, including all switching costs.
- 3Apply and value
The new bank approves the application and values the property.
- 4Settlement and transfer
The new bank pays off the old loan; the old mortgage is released and the new one registered at the DLD.
Is this the right route for you?
If one of these sounds like you, this service is a good starting point. If not, we will point you to the option that fits.
- 1Homeowners nearing the end of a fixed-rate period
- 2Borrowers whose circumstances have changed
- 3Owners wanting to review the cost of their current mortgage
Worth knowing
Switching can involve early settlement fees and new registration costs.
A lower monthly payment over a longer term can increase total interest.
What to consider first
- 01
Start from your current terms
Note your rate, outstanding balance, remaining term and when any fixed period ends. Your bank can provide a liability letter with these figures.
- 02
Count every switching cost
Add the early settlement fee, new registration and valuation costs and any arrangement fee, then compare them with the saving over the period you expect to keep the mortgage.
- 03
Compare total cost, not the monthly figure
Extending the term lowers the monthly payment but can increase total interest. Compare like for like.
Documents lenders usually ask for
You don’t need any of these to make an enquiry. We’ll confirm exactly what your lender needs.
- Passport, residence visa and Emirates ID
- Salary certificate and recent payslips
- Six months of bank statements showing salary credits
- Details of existing loans and credit-card limits
- Liability letter and recent mortgage statement from your current bank
- Title deed copy
When the saving over the period you plan to hold the mortgage is greater than the cost of switching, including early settlement and registration fees.
Often yes — banks may offer existing customers a new product. Compare it with outside offers, as the best deal is not always with your current lender.
A new application creates a credit enquiry, and settling the old loan is recorded. Keeping other borrowing stable helps.
Usually, within the 25-year maximum and age limits. A longer term lowers the payment but increases total interest.
No. The initial conversation is free and does not commit you to anything. Any fees that apply later are explained before you decide to proceed.
No. A pre-approval is issued by the bank after an initial assessment and is conditional. A final offer depends on the property, its valuation and the lender’s full review.
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