Your figures
Example value: enter the rate offered by your lender.
Early settlement, valuation and arrangement fees. DLD mortgage registration (0.25%) is added automatically.
Monthly difference
AED 663
Indicative simulation, not a loan offer, an approval or financial advice. Limits shown are the regulatory maximums; each lender applies its own credit policy. Interest rates are the ones you enter. Market figures are medians of Dubai Land Department registered data and describe the past, not future prices or returns.
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Worked example
Balance AED 1,200,000, 20 years left. With the two example rates of 5.5% (current) and 4.5% (new), the payment goes from AED 8,255 to AED 7,592, a difference of AED 663 a month. Switching costs of AED 8,000 (0.25% DLD mortgage registration plus AED 5,000 of other fees, an assumption) are recovered after 13 months.
What the regulation says
- There should be no impediment for borrowers to refinance with other institutions.
- The maximum charges for refinancing or early repayment are the lender’s actual cost to break a fixed rate and the fees set by Central Bank Regulation 29/2011.
- Fees and charges are listed in a separate schedule attached to the loan contract.
Costs to include
- Early settlement fee from your current lender (see your schedule of fees).
- Dubai Land Department mortgage release and new mortgage registration (0.25% of the loan for registration).
- Valuation and arrangement fees of the new lender.
Frequently asked questions
When is a mortgage buyout worth it?
When the monthly difference recovers the switching costs well before you plan to sell or repay. The break-even month in the calculator shows that point for your figures.
Can my bank refuse to release my mortgage?
The Central Bank regulation states there should be no impediment to refinancing with another institution; your lender may charge only the fees allowed by the regulation.
Does the new loan follow the LTV limits?
Yes, the new lender values the property and applies the loan-to-value limits to the new loan.
Go further
Considering a move or an upgrade? Cevitas publishes DLD prices by area.