Refinancing and Early Settlement of a Dubai Mortgage

You can move your mortgage to another bank for a better rate (a buyout) or pay it off early. UAE Central Bank rules cap early settlement fees at 1% of the outstanding balance or AED 10,000, whichever is lower. Weigh savings against fees and the new bank’s costs.

Updated 27 October 2026 · 1 min read

Refinancing (a mortgage buyout) moves your loan to a new bank on new terms. Early settlement pays it off in part or in full. At the time of writing, Central Bank rules cap the early settlement fee at 1% of the outstanding amount or AED 10,000, whichever is lower.

Refinancing step by step

  1. Compare the saving

    Work out the interest saved over your expected holding period, minus all fees.

  2. Get a new offer

    The new bank values the property and approves you, much like a purchase.

  3. Liability letter

    Your current bank confirms the amount to settle.

  4. Settle and register

    The new bank pays off the old loan, the old mortgage is released and the new one is registered with the Land Department.

Costs to include

  • Early settlement fee on the old loan (within the Central Bank cap)
  • New bank’s arrangement and valuation fees
  • Mortgage release and new mortgage registration fees

Common mistakes to avoid

  • Switching for a lower opening rate that resets higher soon after.
  • Ignoring fees that wipe out the saving.

This guide is general information, not legal, tax, financial or lending advice. Fees, rules and procedures change and depend on the property, the parties and the contract. Confirm current details with the relevant authority and qualified advisers before acting.

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Common questions

What is the early settlement fee on a UAE mortgage?

Under Central Bank rules it is capped at 1% of the outstanding balance or AED 10,000, whichever is lower. Check your loan agreement.

Can I move my mortgage to another bank in Dubai?

Yes, through a mortgage buyout. The new bank settles your old loan and registers a new mortgage.

Is refinancing worth it?

Only if the interest saved over your holding period is greater than all the fees involved.

Keep reading

Sources

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