Can I Release Equity from My Mortgage?

our home is not just a place to live — it’s also a valuable asset. Many homeowners in the UAE ask: can I release equity from my mortgage to fund renovations, invest in additional properties, or consolidate debt? Equity release can be a smart way to access cash without selling your home.

This guide explains how equity release works in the UAE, eligibility criteria, costs, pros and cons, and expert tips to help you make the most of your mortgage equity.

What Is Equity Release?

Equity release allows homeowners to unlock cash tied up in their property while still living there. You borrow against the difference between your home’s current market value and any remaining mortgage balance.

Common types of equity release in the UAE:

• –Remortgage Equity Release: Switching to a new mortgage to access extra funds.
  
  
  
• –Second Charge Mortgage: A separate loan secured against your property alongside the existing mortgage.
  
  

Funds can be disbursed as a lump sum or a revolving credit line depending on the lender.

How Does Equity Release from a Mortgage Work?

Step-by-step process for UAE homeowners:

Step 1: Property Valuation

The bank assesses your property’s current market value.

Step 2: Calculate Available Equity

Subtract your outstanding mortgage from the property’s value. UAE banks usually allow up to 75–80% Loan-to-Value (LTV) for residents, slightly lower for non-residents.

Step 3: Apply with Bank or Mortgage Broker

Submit:

• -Passport and UAE residency visa
  
  
• -Current mortgage details
  
  
• -Proof of income
  
  
• -Property title deed
  
  

The lender evaluates eligibility and determines the maximum releaseable amount.

Step 4: Receive Funds

Funds can be drawn as:

• -Lump sum for renovations or debt consolidation
  
  
• -Line of credit for staged projects
  
  

You continue living in your home while using its equity to fund projects or investments.

Eligibility Criteria

• –Minimum Property Value: Sufficient equity must exist.
  
  
  
• –LTV Limits: Typically 75–80%.
  
  
  
• –Age & Residency: Usually 21–65 years old; residency or proof of income required.
  
  
  
• –Purpose of Funds: Most lenders restrict use to home improvements, property investment, or debt consolidation.
  
  
  

Updated Fees Table for 2025

Fee Type	Updated Amount (AED)
Valuation Fee	2,500 – 3,500
Mortgage Arrangement Fee	Up to 1% of loan amount
Trustee Office Fee	4,000 – 5,000
Legal / Documentation Fees	1,500 – 2,500

Note: Some lenders offer fee waivers for high-value properties or long-term clients.

Pros and Cons of Equity Release

Advantages:

• -Access funds without selling your home
  
  
  
• -Flexible borrowing options
  
  
  
• -Leverage property growth to increase net wealth
  
  
  
• -Lower rates than unsecured personal loans
  
  
  

Disadvantages:

• -Your home remains collateral
  
  
  
• -Increases total debt and monthly payments
  
  
  
• -Early repayment fees may apply
  
  
  
• -Market fluctuations can affect remaining equity
  
  
  

Tips for Releasing Equity

1. Compare multiple lenders — Rates and terms differ.
   
   
   
2. Maintain a healthy LTV — Avoid over-borrowing.
   
   
   
3. Plan projects strategically — Use funds where ROI is highest.
   
   
   
4. Consult a mortgage broker — Mortgage Finder can handle approvals and paperwork.
   
   
   
5. Review interest options — Fixed or variable may affect long-term costs.
   
   
   

FAQs

Q: Can I release equity with an existing mortgage?
Yes — banks provide remortgage or second-charge options even if the mortgage is active.

Q: Allowed uses for released funds?
Primarily home renovations, property investments, or debt consolidation. Personal cash-outs are usually restricted.

Q: How long does approval take?
Typically 4–6 weeks, depending on valuation and lender processing.

Q: Can off-plan properties qualify?
Some banks offer “buyout plus equity” options upon handover.

Q: Are there risks?
Yes — interest accumulation, market fluctuations, and higher debt obligations are key risks.

For homeowners asking, can I release equity from my mortgage, the answer is yes — and it can be a smart tool if used wisely. Whether for renovations, investments, or debt management, equity release provides access to funds without selling your home.

At Mortgage Finder, we guide you through lenders, paperwork, and options to ensure the solution fits your lifestyle and financial goals.