Equity Release in Dubai
How to Refinance a Property You Already Own
Dubai prices have moved enough that many owners are sitting on equity they cannot spend. Releasing it means taking a new mortgage against a fresh valuation — inside the same Central Bank ceilings that governed the original purchase. Here is what banks will actually lend, every fee on both sides of the transaction, and the conditions most borrowers do not see coming.
What Equity Release in Dubai Actually Means
Equity is the part of your property you own outright — the gap between what it would sell for today and what you still owe the bank. Equity release is the act of borrowing against that gap without selling. In the UAE the same transaction is sold under several names: cash-out refinance, remortgage, mortgage buyout plus equity, or loan against property. The mechanics are the same in each case.
A lender revalues the property, sizes a new mortgage against that valuation, uses part of the new loan to settle whatever is outstanding on the old one, discharges the old charge at the Dubai Land Department, registers its own charge in its place, and releases the remainder to you. You keep the title deed and the property stays in your name — what changes is the size of the debt secured against it, and who holds it. Our guide to the Dubai title deed sets out what that registered charge actually attaches to.
One condition rules out a large share of Dubai owners immediately: the property must be completed, handed over and registered in your name. A bank is lending against security it could ultimately enforce, and an off-plan unit is not that. Anything bought before completion sits under a separate and much tighter regime, covered in our guide to off-plan mortgages in Dubai. Mortgage Finder notes that some lenders offer a buyout-plus-equity structure at the point of handover — the earliest an off-plan buyer can reach this product.
Equity release is not a separate lending regime with its own rules. It sits inside the same Central Bank ceilings that governed your original purchase — the loan-to-value caps, the 50% debt burden ratio and the 25-year maximum term — set out in our guide to how to get a mortgage in Dubai. The difference is that the percentage is applied to a fresh valuation rather than a historic purchase price, which is precisely why rising values create releasable equity.
Equity Release at a Glance
The ceilings and the fees in one place
What an Equity Release Actually Costs
A refinance is two transactions billed as one — closing the old loan and opening the new. Both ends carry fees, and the largest of them scales with how much you draw.
| Cost | Amount | Levied By | Note |
|---|---|---|---|
| Early settlement fee | 1% of outstanding balance or AED 10,000, whichever is lower | Your current bank | Capped by the Central Bank |
| Mortgage release procedure | AED 1,290 | Dubai Land Department | Discharges the old charge |
| Registrar — mortgage release | AED 315 | Dubai Land Department | Paid alongside the release |
| New mortgage registration | 0.25% of the new mortgage value | Dubai Land Department | Scales with the amount drawn |
| Property valuation | AED 2,500–3,500 | Appointed valuer | Sets the figure the LTV applies to |
| Bank processing / arrangement fee | 0.25–1% of the new loan | New lender | Negotiable in some cases |
| Life cover | Approximately 0.15–0.25% a year of the outstanding balance | Insurer, via the lender | Recurring, not one-off |
| Title deed issuance | AED 250 | Dubai Land Department | Per deed |
| Knowledge & innovation fees | AED 10 + AED 10 | Government of Dubai | Applies to the service |
Dubai Land Department fee lines — the AED 1,290 mortgage release procedure, the AED 315 registrar release, the 0.25% mortgage registration fee, the AED 250 title deed and the AED 10 knowledge and AED 10 innovation fees — are as published in the DLD fee schedule set out in TruHauz’s Dubai DLD fees guide, retrieved 24 August 2026. The early settlement cap of 1% or AED 10,000, whichever is lower, was introduced by the Central Bank of the UAE through Decision No. 96/By Circulation/2019, amending Appendix 2 of Regulation No. 29/2011, replacing a 3% fee that had applied since June 2018. Valuation and life cover figures are as reported by dataHabibi, “Mortgage in Dubai 2026: Rates & LTV Limits”, published 11 July 2026. The bank processing fee range of 0.25–1% is as reported by EGSH, “Remortgage in UAE: How to Refinance Your Dubai Mortgage”, retrieved 17 September 2026; EGSH lists the DLD discharge fee as AED 1,000, which differs from the DLD schedule figures used above — confirm the current amount with the DLD or a licensed conveyancer before you transact. Bank-side fees are commercial terms, not regulated caps, and vary by lender.
Six Checks Before You Release Equity
Each of these has stopped a release that looked straightforward on paper. All six are knowable before you apply.
Want to know what your property would actually release?
Send us the unit, the outstanding balance and your income position. TruHauz will map it against the caps before you approach a lender.
Three Ways an Equity Release Goes Wrong
None of these are exotic. Each one is a routine feature of UAE mortgage lending that borrowers discover after they have committed rather than before.
The Number Is Not Yours to Choose
The loan-to-value percentage is applied to the bank’s own valuation, not to your estimate or to a neighbouring sale. A valuation below expectation shrinks the release directly, and because the outstanding balance is deducted first, a modest shortfall in value can wipe out a large share of the cash you expected.
The Debt Burden Ratio Binds First
All monthly debt repayments — car finance, personal loans, credit card minimums — are capped at half your monthly income. A bigger mortgage means a bigger repayment, so applicants are routinely limited by affordability well before they reach the loan-to-value ceiling. Clearing a small facility often raises the release more than a higher valuation would.
The Rate You Start On Is Not the Rate You Keep
Most UAE mortgages revert to EIBOR plus a bank margin when the fixed period ends. dataHabibi put three-month EIBOR at approximately 3.85% in late June 2026, with the Central Bank base rate at 3.65% and reversion margins commonly between 1.5% and 3%. Over a 25-year term the follow-on margin matters far more than the headline fixed rate.
Frequently Asked Questions
The questions Dubai owners ask most often about releasing equity and refinancing.
This guide is general information about how equity release and mortgage refinancing work in Dubai, drawn from the sources named and dated throughout. It is not legal, tax or financial advice, and it is not an offer of credit. Regulatory caps, Land Department fees and lender criteria change, and individual bank policy is stricter than the regulatory ceiling in most cases. Confirm current figures and your own eligibility with a licensed lender, a licensed conveyancer or the Dubai Land Department before acting.
Find Out What Your Equity Is Worth
TruHauz maps the valuation, the applicable cap and the full cost of both ends of a refinance before you approach a lender — so the number you plan around is the number you receive. Tell us what you own.
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