When should I refinance my UAE mortgage?

Refinancing makes financial sense in the UAE when: the new rate is at least 0.5% lower than your current rate; your property value has increased (improving your LTV); you want to switch from variable to fixed; or you want to release equity. The break-even period (time for savings to outweigh refinancing costs) is typically 12–18 months in the UAE.

What are the costs of refinancing a UAE mortgage?

Refinancing can involve a settlement charge, new-lender fees, valuation, registration and transaction costs. Obtain written figures from the existing lender, new lender and relevant transaction parties before comparing options.

How long does refinancing a UAE mortgage take?

UAE mortgage refinancing typically takes 4–8 weeks from application to completion. The process involves: pre-approval from the new bank (1–2 weeks), property valuation (3–5 days), bank offer and documentation (1–2 weeks), coordination between the existing and new bank for the liability letter and settlement (2–3 weeks). Mortigo advisors manage the entire process on your behalf.

UAE Mortgage Refinancing Calculator

Thinking about refinancing your mortgage in the UAE? Mortigo's free refinancing calculator shows you exactly how much you could save by switching to a lower interest rate. Compare your current mortgage against new rates from leading UAE banks and lenders to see your potential monthly savings and break-even point.

When Should You Refinance Your UAE Mortgage?

Refinancing makes financial sense when the new interest rate is at least 0.5–1% lower than your current rate, when your property value has increased (improving your loan-to-value ratio), or when you want to switch from a variable rate to a fixed rate for greater repayment certainty.

Key Inputs

Current outstanding loan balance
Current interest rate and remaining loan term
New rate offered by the refinancing bank
Estimated early settlement fee (if applicable)
Arrangement and processing fees for the new mortgage

An early-settlement or partial-prepayment charge may apply. The applicable Central Bank requirements, product terms, any monetary cap and VAT treatment depend on the transaction and lender documentation; obtain a written settlement figure from your lender before deciding to sell, refinance or prepay. For a qualifying first, self-use residential property under AED 5 million, the standard maximum LTV is 80% for an eligible expat resident and 85% for an eligible UAE national. This means minimum deposits of 20% and 15% respectively. Different limits or lender criteria can apply to non-residents, subsequent purchases, investment or off-plan property, higher-value property and individual affordability. The lender uses the lower of its valuation and purchase price where applicable.

What You Get

Monthly repayment comparison (old vs. new mortgage)
Total interest saved over the remaining loan term
Break-even period — how long until savings outweigh the refinancing costs
Guidance on which UAE banks offer the best refinancing rates right now

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Refinancing Calculator

Compare indicative monthly payments and lifetime cash outflow

Current Loan Balance (AED)

Current Interest Rate (%)

Remaining Tenure (Years)

New Loan Terms

New Interest Rate (%)

New Loan Tenure (Years)

UAE Refinancing Costs

Early Settlement Fee (AED)

Typically 1% of outstanding balance (capped per bank)

Property Valuation Fee (AED)

Processing Fee (AED)

Registration Fee (AED)

Total Costs: AED 14,500

Refinancing Analysis

Enter valid loan details to see refinancing analysis