Remortgage in the UAE: Everything You Need to Know

Buying a property is often one of the biggest financial decisions in life. But what happens after you’ve had your mortgage for a few years? Many homeowners in Dubai and across the UAE are now turning to remortgage options to save money, unlock equity, or secure better loan terms.

If you are asking yourself whether remortgaging is right for you, this guide explains what it means, how it works in the UAE, and the benefits and considerations you should keep in mind.

What Is a Remortgage?

A remortgage (also known as refinancing) is when you switch your existing mortgage to a new one, either with your current bank or a different lender. The new mortgage pays off your outstanding loan, and you continue making payments under the new terms.

In the UAE, remortgaging is becoming increasingly popular as property values rise and more competitive mortgage products become available. It can help you take advantage of lower interest rates, release funds tied up in your property, or adjust your mortgage term length to suit your financial goals.

Why Do Homeowners Choose to Remortgage in the UAE?

There are several reasons why expats and residents consider a remortgage:

1. Lower Interest Rates
   Mortgage interest rates in the UAE fluctuate based on the Emirates Interbank Offered Rate (EIBOR) and market conditions. If you originally took your mortgage during a period of higher rates, you may now be eligible for a lower rate, helping you reduce your monthly payments.

2. Switching from Variable to Fixed Rate
   Some homeowners prefer the stability of fixed rates, while others may benefit from variable rates linked to EIBOR. A remortgage allows you to change the type of rate depending on your financial strategy.

3. Releasing Equity
   If your property has increased in value, remortgaging gives you access to part of that equity. This cash can be used for investments, home renovations, or personal needs.

4. Changing Mortgage Term Length
   Through remortgaging, you can shorten your mortgage term to pay off the loan faster or extend it to reduce monthly payments and improve affordability.

5. Debt Consolidation
   Some homeowners use a remortgage to consolidate other debts into one manageable monthly payment with a lower interest rate.

How Does Remortgaging Work in Dubai and the UAE?

The process of a remortgage in the UAE is straightforward but requires planning:

1. Assessment of Current Mortgage
   Review your outstanding balance, current interest rate, and remaining term.

2. Comparing New Mortgage Offers
   Work with a mortgage advisor to compare deals from multiple banks. Consider not just the interest rate, but also fees, flexibility, and terms.

3. Application with a New Lender
   If switching banks, you will apply for a new mortgage. This involves income verification, credit checks, and property valuation.

4. Settlement of Old Mortgage
   Once approved, the new lender pays off your old mortgage, and you start making payments under the new agreement.

Costs Involved in Remortgaging

While a remortgage can save money in the long run, you should be aware of the associated costs in the UAE. These may include:

It’s important to calculate whether the long-term savings from a lower rate outweigh these upfront costs.

Benefits of Remortgaging in the UAE

• •Lower Monthly Payments – By securing a reduced interest rate.

• •Flexibility – Choose between fixed and variable rates.

• •Equity Access – Free up funds without selling your property.

• •Better Terms – Adjust your repayment schedule to match your financial goals.

• •Debt Management – Combine multiple debts into a single manageable mortgage.

Things to Consider Before You Remortgage

Before deciding, ask yourself:

• •Are you currently locked into a fixed rate with penalties for early settlement?

• •Will the cost of switching outweigh the benefits of a new deal?

• •Do you plan to stay in the UAE long enough to benefit from a remortgage?

• •How stable is your income and long-term repayment ability?

Who Can Remortgage in Dubai?

Both UAE residents and expats can apply for a remortgage. Typically, you must:

• •Own a property with an existing mortgage.

• •Meet the bank’s eligibility criteria (income, credit score, age).

• •Have a property that qualifies for refinancing under UAE Central Bank rules.

How to Get the Best Remortgage Deal in the UAE

1. Compare Banks – Don’t just stick with your current lender. Explore the market.

2. Work with a Mortgage Broker – Experts like Mortgage Finder can negotiate better terms and simplify the process.

3. Check EIBOR Trends – Knowing market movements helps you choose between fixed or variable rates.

4. Review Total Costs – Consider fees, not just the headline interest rate.

5. Plan Ahead – Start the process at least 3–6 months before your current fixed rate expires.
   
   
   

A remortgage can be a smart financial decision if done at the right time. Whether you want to save money on interest, release equity, or adjust your repayment schedule, refinancing your mortgage in the UAE offers flexibility and long-term benefits.

Working with a mortgage advisor ensures you compare the best deals in the market and make a well-informed choice. By carefully weighing the costs and advantages, you can decide if a remortgage is the right move for your financial future.