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Mortgage Buyout Loans in Dubai & UAE
Paying more than you need to on a mortgage you took out two or five years ago? A buyout moves your outstanding balance to a new UAE bank at today's pricing. The Central Bank caps what your current lender can charge you to leave at 1% of the outstanding balance or AED 10,000, whichever is lower, and there is no 4% Dubai Land Department transfer fee, because the property is not changing hands. Simply Mortgage compares live buyout pricing across every UAE mortgage lender, calculates your true break-even after every fee, and tells you honestly when switching is not worth it.
Compare Buyout Offers Across Every CBUAE-Regulated Mortgage Lender in the UAE
Buyout campaigns change monthly. We track every bank circular so you switch to the right lender, not just the loudest advertised rate.
Who a Buyout Is For
Three tabs, one borrower situation per tab. All tab content server-rendered.
- Your fixed term (1, 2, 3 or 5 years) is ending or has ended
- Reversion rate is typically bank margin + 3M EIBOR, often 1–2% above the fixed rate you were paying — this is the single most common trigger for a UAE buyout
- Start the process 60–90 days before the fixed period expires; an offer letter is typically valid 30 days
- Early settlement fee usually still applies, capped at 1% or AED 10,000
Documents Required
Select your profile — checklist filters to your exact requirements. Downloadable PDF: “UAE Mortgage Buyout Document Checklist 2026” → email capture on request.
- Passport (all pages) and Emirates ID (front + back)
- UAE residence visa page
- Latest salary certificate (salaried) / trade licence + 2 years audited financials (self-employed)
- Bank statements — last 3–6 months (salaried) / 12 months (self-employed)
- Existing mortgage statement / loan account statement
- Liability letter from your current bank — states the exact outstanding balance and settlement figure
- Title deed
- Existing loan liability letters (credit cards, personal loans, car finance)
- Original mortgage offer letter and rate schedule, if available
Bank Comparison for Buyouts
Filter by your situation — ranked bank recommendations. Buyout rates last updated 10 October 2026, refreshed at least quarterly and ideally monthly.
| Bank | Best For |
|---|---|
| Emirates NBD | Salaried expats switching from a completed fixed period — frequent processing-fee waivers on switch campaigns |
| FAB | UAE nationals, high-balance transfers — preferential pricing on large balances |
| HSBC | Global expats with international income — strong on complex income documentation |
| ADCB | Buyout plus equity release in one transaction — flexible on combined structures |
| Mashreq | Self-employed with strong financials — flexible income assessment on transfer |
| ADIB | Sharia-compliant switch (conventional → Ijara) — Islamic buyout route |
| DIB | Sharia-compliant expats and nationals — full Islamic product suite |
| RAKBANK | Lower balances and lower salary bands — more flexible minimum criteria |
| Standard Chartered | Non-standard income, international profiles — bespoke underwriting |
Last updated 10 October 2026.
A mortgage buyout in the UAE, also called a mortgage transfer, switch or refinance — moves your outstanding home loan balance from your current bank to a new lender offering better terms. Your existing loan is settled in full by the incoming bank, the Dubai Land Department cancels the old mortgage registration and registers the new one, and your monthly payment is recalculated at the new rate. Under Central Bank of the UAE Regulation No. 29/2011 (Appendix 2, as amended), your outgoing bank may charge an early settlement fee of no more than 1% of the outstanding balance or AED 10,000, whichever is lower. There is no 4% Dubai Land Department property transfer fee on a buyout, because ownership does not change — you pay DLD mortgage registration of 0.25% of the new loan amount plus AED 290, a trustee office fee, a valuation, and the incoming bank's processing fee. Borrowers who signed at 5.5–6.5% before 2024 are typically switching to fixed pricing in the high-3s in 2026, and most reach break-even on switching costs within 6 to 14 months. Simply Mortgage arranges buyouts across every UAE mortgage lender, including HSBC, Emirates NBD, FAB, ADCB, ADIB, Mashreq and DIB.
UAE Mortgage Buyout Calculator — How Much Would Switching Actually Save You?
Move your outstanding balance to today's pricing. Adjust the sliders — the verdict updates instantly.
New indicative rate today
3.99% · salary transfer
Current EMI vs New EMI
AED 10,318 → AED 9,082
Monthly saving
AED 1,237
Total saving over 20yr
AED 297K
Total cost to switch (mid-est.)
AED 29K
Break-even
24 months
Switching saves you AED 1,237 per month and pays for itself in 24 months.
Verdict based on illustrative assumptions below — your consultant recalculates against live bank circulars.
Itemised switching cost (auto-capped)
- Early settlement fee (outgoing bank): AED 10,000 — 1% or AED 10,000, whichever is lower (CBUAE cap)
- DLD mortgage registration (new bank): AED 4,040 — 0.25% + AED 290
- Trustee fee: ~AED 3,000
- Valuation (incoming bank): ~AED 3,000
- New bank processing fee: AED 3,750–AED 15,000 — frequently waived on buyout campaigns
- Life/property insurance delta: depends on loan and property — quoted in your offer
Underlying assumptions (also rendered as static HTML below for crawlers): indicative buyout rates 3.99% (salary transfer) / 4.35% (no transfer), CBUAE early-settlement cap 1% or AED 10,000, DLD registration 0.25% + AED 290, trustee ~AED 3,000, valuation AED 2,500–3,500, processing 0.25–1% (often waived). Actual rates depend on bank, fixed current structure and profile (expat-resident). No upfront broker fee — payable only on successful bank disbursal. Full fee details are confirmed in writing before you submit any application.
Get real buyout offers for a AED 2M balanceHow we calculate the numbers above (also visible to search crawlers)
Early settlement fee auto-capped at the lower of 1% of outstanding or AED 10,000 per CBUAE Regulation No. 29/2011 (Appendix 2, as amended). DLD mortgage registration 0.25% + AED 290, trustee ~AED 3,000, valuation AED 2,500–3,500, new-bank processing 0.25–1% (often waived on campaigns). Break-even = total switching cost ÷ monthly saving. Illustrative new rates ~3.99% (salary transfer) / ~4.35% (no transfer) — refreshed quarterly against live bank circulars. Figures exclusive of VAT where applicable.
Complete Buyout Cost Breakdown
Worked example: AED 1.5M outstanding balance.
| Cost item | Rate / basis | AED 1.5M example |
|---|---|---|
| Early settlement fee (outgoing bank) | 1% of outstanding or AED 10,000, whichever is lower — CBUAE cap | AED 10,000 |
| DLD mortgage registration (new bank) | 0.25% of new loan + AED 290 | AED 4,040 |
| DLD mortgage release / discharge (old bank) | Flat fee | Per DLD schedule |
| Trustee office fee | Flat, plus VAT | AED 2,000–4,000 + VAT |
| Liability letter (outgoing bank) | Flat | Per bank panel |
| Property valuation (incoming bank) | Flat | AED 2,500–3,500 |
| New bank processing fee | 0.25–1% of loan — frequently waived on buyout campaigns | AED 3,750–15,000 |
| Life insurance (annual) | ~0.4–0.9% of loan | AED 6,000–13,500 |
| Property insurance (annual) | ~0.05% of property value | ~AED 1,000 |
| Simply Mortgage fee | No upfront fee — payable only on disbursal | Confirmed before application |
| DLD property transfer fee | Not applicable — 4% transfer applies on purchase, not buyout | AED 0 |
You do not pay the 4% Dubai Land Department transfer fee on a buyout.
That fee applies when ownership changes hands. On a mortgage transfer, the title stays in your name and only the registered charge moves.
You do not pay real estate agent commission on a buyout.
No agent is involved in a bank-to-bank transfer.
Fees shown exclusive of 5% VAT where applicable.
Early settlement cap per CBUAE Regulation No. 29/2011, Appendix 2 as amended. DLD fees per Dubai Land Department published schedule. Last verified 10 October 2026.
Is a Buyout Worth It? The Break-Even Table
Illustrative, assuming 20 years remaining and no processing-fee waiver. Figures must be recalculated against live circulars before publication and refreshed quarterly.
| Outstanding balance | Current rate | New rate | Monthly saving | Total switching cost | Break-even |
|---|---|---|---|---|---|
| AED 800,000 | 5.75% | 3.99% | ~AED 690 | ~AED 16,000 | ~23 months |
| AED 1,500,000 | 5.50% | 3.99% | ~AED 1,150 | ~AED 24,000 | ~21 months |
| AED 2,000,000 | 6.25% | 4.09% | ~AED 2,300 | ~AED 30,000 | ~13 months |
| AED 3,000,000 | 5.25% | 3.95% | ~AED 2,050 | ~AED 40,000 | ~20 months |
Rule of thumb
As a general rule in the UAE market, a buyout is worth considering when the rate difference is at least 0.75–1.00 percentage points, you have more than five years of tenure remaining, and your break-even lands inside 24 months. Below that spread, switching costs usually eat the saving. Simply Mortgage will tell you when the numbers do not work.
Buyout vs Equity Release vs Top-Up
| Mortgage buyout | Equity release | Top-up on existing loan | |
|---|---|---|---|
| What it does | Moves your balance to a new bank at a better rate | Borrows against built-up equity, cash out | Additional borrowing from your current lender |
| Change of bank? | Yes | Usually yes | No |
| Cash in hand? | No — same balance, lower rate | Yes | Yes |
| New valuation needed? | Yes | Yes | Usually |
| Early settlement fee? | Yes — capped at 1% / AED 10,000 | Yes, if changing bank | No |
| DLD registration | 0.25% + AED 290 on new loan | 0.25% + AED 290 on new loan | 0.25% on the increase |
| Typical timeline | 3–5 weeks | 4–6 weeks | 2–3 weeks |
| Best when | Your rate is above market | Property has appreciated and you need capital | You need modest extra funds and your rate is already competitive |
Combination note: a buyout and an equity release can be executed as a single transaction — one new loan, one DLD appointment, one set of fees. This is the most common structure Simply Mortgage arranges for clients who bought before 2022. Equity release mortgage in Dubai · Home purchase mortgage
Where UAE Mortgage Rates Sit Today
As of 10 October 2026, 3-month EIBOR stands at a live CBUAE fixing (see ticker above). The sharpest published salary-transfer fixed rates in the UAE start from competitive levels, with buyout-specific campaigns typically lower than standard purchase rates. Variable products are priced at 3M EIBOR plus a margin. Borrowers who signed between 2022 and 2024 are typically sitting 1.5–2.5 percentage points above what is available today.
Every figure in this block is a live market number. Last updated 10 October 2026. Underlying 3M EIBOR values are also available as text in the ticker above and refreshed at least monthly.
What We Offer
Our mortgage buyout loans in dubai & uae solutions come with a range of features designed to meet your specific needs.
Compare live buyout pricing across every UAE mortgage lender — not just advertised rates
CBUAE-capped early settlement: 1% or AED 10,000, whichever is lower — no bank can charge more
No 4% DLD transfer fee on a buyout — ownership stays in your name, only the charge moves
True break-even modelling: monthly saving vs every dirham of switching cost
Buyout + equity release in one DLD appointment when you want cash-out as well
Honest verdict: we tell you when not to switch
Key Benefits
Why choose our mortgage buyout loans in dubai & uae solution and how it can benefit you.
Lower monthly EMI at today's buyout pricing — borrowers who signed at 5.5–6.5% before 2024 are typically switching to fixed pricing in the high-3s in 2026
Reach break-even on switching costs in 6 to 14 months on most buyouts we arrange
Keep the property, change the lender — no agent, no NOC, no 4% transfer fee
Combine a rate cut and a cash-out in a single transaction with one set of DLD fees
Compare salary-transfer and Islamic (Ijara/Murabaha) buyout routes side by side
Managed end-to-end: liability letter → valuation → DLD trustee settlement
Eligibility Criteria
To qualify for our mortgage buyout loans in dubai & uae solution, you'll typically need to meet the following requirements.
Existing UAE mortgage, typically 6+ months since disbursement and in good standing
Outstanding balance typically AED 300K+ — economics improve above AED 800K
Any remaining tenure — but break-even is strongest with 5+ years remaining
Salaried, self-employed and UAE-national profiles all eligible — bank panel varies by profile
Property must pass the incoming bank's valuation at a LTV that supports the new loan
How a Mortgage Buyout Works in Dubai & the UAE — Step by Step
Seven steps over three to five weeks — numbered as an ordered list for AEO and marked up with HowTo schema below.
Free savings assessment (Day 0)
WhatsApp, call or in-person. We need your outstanding balance, current rate, rate type and remaining tenure. We model the switch and tell you the break-even before you commit to anything.
Liability letter from your current bank (Day 1–5)
You request a liability letter from your existing lender. It states the exact outstanding balance, the settlement figure including any early settlement fee, and the date to which it is valid. Most banks issue within 3–5 working days for a fee. This letter drives every number that follows.
Approval in Principle from new banks (Day 2–4)
Simply Mortgage submits your profile to the banks on our panel running the strongest buyout pricing for your situation. AIP typically issued within 48 working hours for salary-transfer applicants, 5–7 working days for self-employed. Valid 60 days.
Property valuation (Week 2)
The incoming bank instructs a valuation (AED 2,500–3,500). On a buyout this matters more than on a purchase: the valuation sets the LTV on your new loan and, if you are releasing equity, determines how much cash is available.
Final offer letter and acceptance (Week 2–3)
Final approval issued with the exact rate, tenure, fee schedule and insurance requirements. Offer letter typically valid 30 days. Read the reversion rate, not just the fixed rate — Simply Mortgage will show you what your payment becomes after the fixed period ends.
DLD trustee appointment: settlement and re-registration (Week 3–4)
Both banks and Simply Mortgage attend a DLD Registration Trustee Office appointment. The incoming bank issues a manager's cheque settling your old loan in full. The outgoing bank releases its mortgage and hands over the title deed. The new mortgage is registered in favour of the incoming bank (0.25% + AED 290). Ownership does not change — no 4% transfer fee, no NOC from the developer, no agent.
New EMI begins (Following payment cycle)
Your first payment at the new rate is collected on the new bank's cycle. Set up the direct debit and, if applicable, the salary transfer — a missed salary transfer is the most common reason a promised buyout rate is not honoured.
Total timeline: 3–5 weeks from first conversation to new EMI for a typical salaried expat with a clean liability letter. Add 1–2 weeks where equity release is included. Format for AEO: steps are an ordered list (<ol>) with HowTo schema (see FAQ schema above).
Reviewed by Jayesh Talgaonkar, Founder & Lead Consultant, Simply Mortgage. Last reviewed 10 October 2026.
Frequently Asked Questions
What is a mortgage buyout in the UAE?
A mortgage buyout in the UAE is the transfer of your outstanding home loan from your current bank to a new lender offering better terms. The new bank settles your existing loan in full, the Dubai Land Department cancels the old mortgage registration and registers the new one, and your monthly payment is recalculated at the new rate. Ownership of the property does not change, so no 4% DLD transfer fee applies. It is also referred to as a mortgage transfer, switch or refinance.
How does a mortgage buyout work in Dubai?
The process runs in seven steps over three to five weeks. You obtain a liability letter from your current bank stating the exact settlement figure; Simply Mortgage secures Approval in Principle from every UAE mortgage lender on our panel, usually within 48 working hours; the new bank instructs a valuation; a final offer letter is issued; and all parties attend a DLD Registration Trustee Office appointment where the incoming bank settles the old loan, the outgoing bank releases its mortgage, and the new mortgage is registered. Your new EMI begins on the following payment cycle.
What are the fees for switching a mortgage in the UAE?
Switching costs comprise an early settlement fee to your outgoing bank, capped by the Central Bank of the UAE at 1% of the outstanding balance or AED 10,000, whichever is lower; DLD mortgage registration of 0.25% of the new loan plus AED 290; a DLD mortgage release fee; a trustee office fee; a property valuation of AED 2,500–3,500; and the incoming bank's processing fee of roughly 0.25–1%, which is often waived on buyout campaigns. On an AED 1.5 million balance, total switching costs typically land between AED 20,000 and AED 30,000. The 4% DLD transfer fee does not apply.
Is a mortgage buyout worth it in the UAE?
A buyout is generally worth it when the rate difference is at least 0.75 to 1.00 percentage points, more than five years of tenure remain, and the break-even falls inside 24 months. On an AED 2 million balance, moving from 6.25% to 4.09% saves roughly AED 2,300 per month and recovers around AED 30,000 in switching costs in about 13 months. Below a 0.75-point spread, or with a short remaining tenure, the fees usually outweigh the saving. Simply Mortgage calculates your specific break-even before you commit.
What is the difference between a mortgage buyout and equity release?
A buyout moves your existing balance to a new bank at a better rate; you end up with the same debt at a lower cost and no cash in hand. An equity release borrows against the value your property has gained, giving you cash and a larger loan. Both require a fresh valuation, a new DLD mortgage registration and, where the bank changes, an early settlement fee. The two can be combined into one transaction with one set of fees, which is the most common structure for owners who bought before 2022.
What is the early settlement fee in the UAE?
The early settlement fee is what your current bank charges to close your mortgage before the end of its term. Under Central Bank of the UAE Regulation No. 29/2011, Appendix 2 as amended, it is capped at 1% of the outstanding balance or AED 10,000, whichever is lower, and the same cap applies to partial settlement. On an AED 1.5 million balance that means AED 10,000, not AED 15,000. The cap is a maximum, not a standard charge, and any bank charging above it is in breach of federal regulation.
Can I switch my mortgage before my fixed rate period ends?
Yes. Most UAE banks permit early settlement after the first six months, subject to the same CBUAE cap of 1% or AED 10,000. Whether it makes financial sense depends on how far your current fixed rate sits above today's pricing and how much of the fixed term remains. Many borrowers begin the process 60 to 90 days before their fixed period expires so the switch completes before the higher reversion rate takes effect. Simply Mortgage models both scenarios so you can see the cost of waiting.
How long does a mortgage buyout take in Dubai?
A typical UAE mortgage buyout completes in three to five weeks for a salaried applicant. Approval in Principle takes 48 working hours; the liability letter from your existing bank takes three to five working days; valuation and final approval take one to two weeks; and the DLD trustee appointment is scheduled once both banks confirm readiness. Adding an equity release extends the timeline to four to six weeks. Self-employed applicants should allow an additional week for income assessment.
Do I need a new valuation for a mortgage buyout?
Yes. The incoming bank instructs its own valuation, typically costing AED 2,500 to 3,500, because it needs an independent assessment of the security it is taking. On a buyout this valuation carries more weight than on a purchase: it sets the loan-to-value on your new facility and, if you are releasing equity, determines how much cash is available. A valuation materially below your expectation can reduce the rate tier you qualify for.
Can non-residents refinance a UAE mortgage?
Yes, though the panel is narrower and loan-to-value ceilings are lower for non-residents than for UAE residents. Documentation requirements are heavier, typically including overseas income evidence, home-country bank statements and a credit report from your country of residence. Rates are usually priced above resident equivalents. Simply Mortgage arranges non-resident buyouts with the lenders on our panel that actively underwrite overseas borrowers.
More Questions About Switching Your Mortgage
Not Quite What You Need?
Equity Release
Want to release cash from an appreciated Dubai property rather than just lower the rate → different LTV maths, different documentation.
Home Purchase & Resale
Are buying rather than refinancing → up to 80% LTV expat, 85% UAE national.
Non-Resident Mortgage
Live outside the UAE and hold or want UAE property finance → lower LTV cap, heavier documentation.
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