Signs your current mortgage rate is too high, how equity release works, and the step-by-step process to refinance with a new lender in the UAE.
What is mortgage refinancing in the UAE?
Refinancing replaces your existing UAE mortgage with a new one at a better rate, different term, or to access equity in your property. Banks actively compete for refinance business and some offer specific promotions to attract existing mortgage holders.
When does it make sense?
Three main situations: when your current rate is significantly above market, when you have built up equity and want to access cash, or when your financial situation has improved enough to qualify for better terms than when you first applied.
How much can you save?
On a AED 2 million mortgage with 20 years remaining, a 1 percent rate reduction saves approximately AED 1,100 per month — AED 264,000 over the remaining term. Most clients who refinance with us save significantly after accounting for costs.
Refinancing costs in the UAE
Early settlement fee: 1 percent of outstanding balance, capped at AED 10,000. New valuation: AED 2,500 to 3,500. DLD mortgage registration: 0.25 percent of new loan. Total refinancing costs typically AED 15,000 to AED 35,000.
What is equity release?
If your property has increased in value since purchase, you can refinance up to 80 percent of the current value and take the difference as cash. Commonly used to fund improvements, invest in another property, or cover business needs.
The process step by step
Get your current mortgage statement. Get a free valuation assessment. We compare offers from multiple lenders. We submit the application and manage the process end to end including your current bank. The new bank settles the old mortgage directly.
Is now a good time to refinance?
If you are on a rate above 4.75 percent it is worth exploring. We will run the exact numbers — savings, costs, break-even point. If it does not make financial sense, we will tell you that too.
