Mortgage Refinancing in Dubai
Switch your Dubai mortgage to a better rate and save thousands — Mortigo compares 15+ lenders and handles everything for free.
Mortgage refinancing in Dubai — switching from your current lender to one offering better rates or terms — has become increasingly popular as competition between UAE banks intensifies. Whether your current fixed rate has expired, you want to access equity, or you simply want a better deal, Mortigo compares the entire UAE market to find your optimal refinancing solution. Banks actively compete for mortgage buyouts by offering cashback, rate discounts, and fee waivers. Key costs to consider include any early settlement fee (typically 1% of outstanding balance or AED 10,000, whichever is lower) and the new lender's processing fee. In most cases, the savings quickly outweigh these one-time costs.
Key Facts
| Average annual saving | AED 10,000–30,000+ |
| Early settlement fee | 1% or AED 10,000 (lower of) |
| New lender processing fee | Typically 1% (sometimes waived) |
| Best refinancing rate | From 3.49% fixed |
| Time to complete | 4–8 weeks |
| Maximum LTV | 75% for refinancing |
Key Points
- Refinancing saves most Dubai homeowners AED 10,000–30,000+ per year on interest costs.
- Banks actively offer cash incentives and fee waivers to win mortgage buyouts.
- The early settlement fee is capped at 1% of outstanding balance or AED 10,000 — whichever is lower.
- Best time to refinance: when your fixed rate period ends and you move to a higher variable rate.
- Mortigo submits refinancing applications to multiple banks simultaneously to maximise competition.
- Cash-out refinancing can be combined with a rate switch to release equity and reduce your rate simultaneously.
Frequently Asked Questions
How much can I save by refinancing my Dubai mortgage?
Savings depend on your outstanding balance and the rate difference. For a AED 2M mortgage, switching from 4.5% to 3.5% saves approximately AED 20,000 per year. Use Mortigo's refinancing calculator for your exact figures.
What is the early settlement fee in Dubai?
UAE regulations cap the early settlement fee at 1% of the outstanding mortgage balance or AED 10,000 — whichever is lower. On a AED 2M mortgage, the maximum fee is AED 10,000 (since 1% = AED 20,000, the cap applies).
When is the best time to refinance my Dubai mortgage?
The best time is when your current fixed rate period ends and you're moving to a higher variable rate. However, if you have been on a variable rate for some time, it may still be worth switching — Mortigo can calculate your break-even point.
Can I refinance and take cash out at the same time in Dubai?
Yes. Cash-out refinancing combines a rate switch with equity release — your new lender provides a mortgage larger than your current outstanding balance, and you receive the difference as cash. Maximum LTV is 65% for cash-out refinancing.
Use Mortigo's Smart Refinancing tool to compare live refinancing offers from 15+ UAE banks and calculate your exact monthly savings.
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Overview
Mortgage refinancing in Dubai — switching from your current lender to one offering better rates or terms — has become increasingly popular as competition between UAE banks intensifies. Whether your current fixed rate has expired, you want to access equity, or you simply want a better deal, Mortigo compares the entire UAE market to find your optimal refinancing solution. Banks actively compete for mortgage buyouts by offering cashback, rate discounts, and fee waivers. Key costs to consider include any early settlement fee (typically 1% of outstanding balance or AED 10,000, whichever is lower) and the new lender's processing fee. In most cases, the savings quickly outweigh these one-time costs.
Key Points
Frequently Asked Questions
How much can I save by refinancing my Dubai mortgage?
Savings depend on your outstanding balance and the rate difference. For a AED 2M mortgage, switching from 4.5% to 3.5% saves approximately AED 20,000 per year. Use Mortigo's refinancing calculator for your exact figures.
What is the early settlement fee in Dubai?
UAE regulations cap the early settlement fee at 1% of the outstanding mortgage balance or AED 10,000 — whichever is lower. On a AED 2M mortgage, the maximum fee is AED 10,000 (since 1% = AED 20,000, the cap applies).
When is the best time to refinance my Dubai mortgage?
The best time is when your current fixed rate period ends and you're moving to a higher variable rate. However, if you have been on a variable rate for some time, it may still be worth switching — Mortigo can calculate your break-even point.
Can I refinance and take cash out at the same time in Dubai?
Yes. Cash-out refinancing combines a rate switch with equity release — your new lender provides a mortgage larger than your current outstanding balance, and you receive the difference as cash. Maximum LTV is 65% for cash-out refinancing.
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