A mortgage buyout moves your loan to a new bank at a lower rate. Most UAE banks charge 0% processing on a pure buyout, and your old bank can charge at most 1% or AED 10,000 (whichever is lower) to settle early. If your rate is more than about 0.75% above today’s offers, switching usually pays for itself within 2 years.
Rates as of October 2026, subject to bank approval.
| Option | What it does | Best for |
|---|---|---|
| Buyout | New bank pays off your old loan at a lower rate | Lowering your monthly payment |
| Buyout + equity | Same, plus extra borrowing against your equity | Lower rate and funds for renovation or another property |
| Rate switch (same bank) | Your bank re-prices your loan | Avoiding switching costs, if your bank will match |
| Lender | Buyout rate | Fixed for | Processing fee | Extra |
|---|---|---|---|---|
| Lender A (salary transfer) | 3.99% | Ask us | 0% | Valuation refund |
| Lender B (salary transfer) | 4.09% | 3 years | 0% | – |
| Lender C (salary transfer) | 4.10% | 3 years | 0% | – |
| Lender D (non salary transfer) | 4.19% | 3 years | 0% | – |
| Lender E (self employed) | 4.24% | 3 years | 0% | AED 3,000 valuation refund + ESF 10,000 |
Salaried rates. Non-salary-transfer rates are 0.10–0.50% higher. Subject to bank approval.
You owe AED 1,500,000 with 20 years left at 5.50%. You switch to a 4.10% fixed rate (as of October 2026, subject to bank approval).
Switching costs assumed: early settlement AED 10,500 (incl. VAT), mortgage registration AED 4,040, trustee AED 4,200, valuation AED 3,150 (refunded at some banks).
| Item | Before | After |
|---|---|---|
| Monthly payment | AED 10,318 | AED 9,169 |
| Monthly saving | AED 1,149 | |
| Saving over 3-year fixed period | AED 41,377 | |
| One-off switching costs | About AED 21,900 | |
| Break-even | Month 19 | |
| Cost | Amount | Who charges |
|---|---|---|
| Early settlement fee | Max 1% of balance or AED 10,000, whichever is lower (+VAT) | Old bank (UAE Central Bank cap) |
| New mortgage registration | 0.25% of loan + AED 290 | Dubai Land Department |
| Trustee office | AED 4,000 + VAT | Trustee centre |
| Valuation | AED 2,500–3,150; refunded at some banks | New bank |
| Processing fee | 0% for pure buyout at most banks | New bank |
Work out your own numbers with the mortgage calculator or the refinance calculator.
Same day
Free savings check
We compare your current rate to every bank.
3–7 working days
New bank pre-approval
5–10 working days
Liability letter from your old bank
Valid 15–30 days.
5–7 days
Valuation and final offer
At transfer
Settlement and transfer at the trustee office
The new bank pays the old bank, and the mortgage moves on the title deed.
1. What is a mortgage buyout in Dubai?
It means a new bank pays off your existing mortgage and gives you a new loan, usually at a lower rate. The property stays yours; only the lender changes.
2. How much does it cost to switch mortgage banks in the UAE?
Usually AED 15,000–25,000 in total. The biggest items are the early settlement fee (capped at 1% or AED 10,000) and the 0.25% mortgage registration fee.
3. When is refinancing worth it?
Usually when your rate is 0.75% or more above current offers and you have at least 3–5 years left on the loan. Work out your break-even month: switching costs divided by monthly saving.
4. How long does a mortgage buyout take in Dubai?
Typically 3–5 weeks. Waiting for the liability letter from your old bank is often the slowest step.
5. Can I release equity during a buyout?
Yes. Many banks allow a buyout plus equity release, often for renovation or to buy another property.
6. Will refinancing affect my credit score?
Only briefly, through the new application. Paying off the old loan on time keeps your record clean.
