The early settlement fee is capped at 1 percent of the outstanding balance or 10,000 dirhams, whichever is lower, plus VAT.
- Full early settlement: max 1% or AED 10,000, whichever is lower, + VAT
- Part-prepayment within the yearly allowance: usually free (15–30% a year, depending on the bank)
- Settling after selling the property: some banks waive the fee
Example: settling AED 800,000 costs at most AED 8,000 + VAT. Settling AED 2,000,000 costs at most AED 10,000 + VAT.
Related: Mortgage buyout
