Mortgages
Refinance and balance transfer
Your fixed period has ended, or another bank is pricing lower than yours. Moving the mortgage costs a few thousand dirhams in fees. We show you whether the saving covers that, and how many months it takes.
When switching makes sense
The most common reason is the end of a fixed period. Your loan moves onto the bank's variable rate, which is often higher than what a new customer is offered. That gap is your saving.
The Central Bank caps the early settlement fee at 1% of the outstanding balance or AED 10,000, whichever is lower. Add the new bank's valuation, mortgage registration and any arrangement fee, and you have the cost of switching. If the monthly saving pays that back within a year or two, it is usually worth doing.
How a balance transfer works
The new bank values the property and approves you as if you were a new borrower. It then pays off your old bank directly, and the mortgage is re-registered at the Land Department in the new bank's name. You keep living in the property throughout.
We request the liability letter from your current bank, line up the new offer, and track both sides so the payoff happens on the agreed date.
Ask your current bank first
Sometimes your own bank will match a competing offer to keep you. We are happy for you to use our numbers to ask. If they match, you save the switching fees.
Questions about refinancing
Can I release cash when I refinance?
Often, yes. If the property has gone up in value or you have paid down the loan, the new bank can lend more than your current balance, within the loan-to-value limits. See our equity release page for how that works.
Can I switch while I am still in a fixed period?
You can, but check the early settlement terms first. The 1% or AED 10,000 cap applies, though some fixed-rate contracts carry other conditions. We read your offer letter before advising.
Will my credit score be affected?
The new bank checks your AECB report, which records an enquiry. One application has little effect. We avoid sending your file to several banks at once.
Find out what the banks will offer you
Two minutes of questions, then a broker comes back to you with the banks that fit and what they are likely to lend.