Current mortgage refinance rates across UAE banks, compared

Why refinance rates move independently of purchase rates

Refinance pricing in the UAE is not simply a copy of a bank's purchase-mortgage rate card. Banks compete more aggressively for refinance business because a large, well-documented, already-performing loan is lower risk than a fresh purchase file — the borrower has a proven repayment history, and the property has already been through at least one valuation cycle. That is why refinance-specific promotions, fee waivers and cash-back offers appear and disappear throughout the year, and why the gap between the most and least competitive offer on the same file is often wider on a refinance than on a purchase.

All figures below are indicative and change with each bank's internal pricing cycle, so treat this as a starting point for comparison rather than a locked-in quote. For background on the mechanics of switching, see our guide on when to refinance.

Indicative refinance rates across 8 UAE banks

What a 0.10-point gap is actually worth

A small headline gap compounds meaningfully over a large balance and a long remaining term. The table below models the same AED 1,800,000 balance across the lowest and highest indicative rates in our panel above, all else being equal.

On its own a 0.10-point gap looks marginal month to month, but stacked against arrangement fee differences and cash-back offers, the total first-year saving between the cheapest and most expensive offer on this balance can exceed AED 15,000 once switching costs and incentives are netted off.

Switching costs to net against any rate saving

• Early settlement fee on your current loan: 1% of the outstanding balance or AED 10,000, whichever is lower.
• New bank arrangement fee: typically around 1% of the new loan amount.
• DLD mortgage registration: 0.25% of the new loan plus AED 290.
• Valuation fee: AED 2,650 to AED 3,150, charged by the new bank's approved valuer.

These costs are fairly consistent across the market, which is why the headline rate and any arrangement-fee waiver or cash-back campaign end up mattering just as much as the interest rate itself. Lenddoo's comparison surfaces all of this side by side, including refinance fees most borrowers only discover after they've committed to a single bank.

Step by step: comparing refinance offers properly

1. 1Request a liability letter from your current bank showing the exact outstanding balance and early settlement fee.
2. 2Get indicative refinance quotes from at least 4-5 banks using your real balance and property value.
3. 3Ask each bank explicitly about arrangement fee waivers and cash-back campaigns, since these are rarely advertised upfront.
4. 4Compare the all-in first-year cost, not just the headline rate.
5. 5Confirm the reversion rate on any new fixed period so you know what happens after year 1, 2 or 3.
6. 6Submit your document pack once you've selected the strongest overall offer.

Fixed or variable when refinancing

Most UAE refinance activity moves borrowers into a new fixed period, since it resets certainty for another 1-5 years, but some borrowers deliberately choose variable if they expect EIBOR-linked rates to fall over their holding period. See our dedicated guide on EIBOR and variable rates for how that decision plays out under different scenarios, and our fixed vs variable comparison for the general trade-offs.

Who these refinance rates typically suit

Refinance offers at this pricing band are generally most accessible to UAE resident borrowers with 12+ months of on-time payment history, a Debt Burden Ratio comfortably under the 50% cap, and a loan-to-value that stays within the applicable ceiling — up to 80% for expat residents on a first property under AED 5,000,000. Borrowers with a higher LTV, a recently changed job, or an off-plan property may see less aggressive pricing and should factor in a longer approval timeline. You can check your affordability using our mortgage calculator before approaching banks directly.

How your refinance rate is actually priced

Behind every headline number, a bank's pricing engine runs your file through a few core inputs: your loan-to-value after the new valuation, your Debt Burden Ratio including the new instalment, your salary transfer status, your employer's risk category, and the remaining term on the loan. Two borrowers refinancing an identical AED 1,500,000 balance can land 0.10-0.15 points apart purely because one transfers salary to the new bank and the other doesn't. Loan-to-value matters just as much: a refinance that drops your LTV below roughly 60% because your property has appreciated typically attracts a sharper rate than one sitting close to the 80% ceiling for expat residents.

Term length plays a role too. A borrower refinancing with 22 years remaining is a longer-duration risk for the bank than one with 8 years left, and pricing sometimes reflects that at the margin. None of this is published on a rate card, which is exactly why the same bank can quote two different customers two different numbers for what looks like the same product.

A worked example: refinancing a self-employed borrower's balance

Consider a self-employed borrower with an outstanding balance of AED 2,200,000, two years of audited financials, and a trade licence in a bank-approved activity. Because self-employed income is assessed on trailing financial performance rather than a fixed payslip, banks typically average the last two years' declared income and apply a haircut, often 20-30%, before calculating the maximum instalment under the 50% Debt Burden Ratio cap. On declared annual income of AED 480,000, averaged and haircut to roughly AED 355,000, the maximum comfortable instalment works out to around AED 14,800 a month — which at a 3.97% indicative rate supports a balance broadly in line with the AED 2,200,000 example, assuming no other debt obligations are already using up DBR headroom.

The practical takeaway is that self-employed refinance applicants should expect a slower underwriting process and should gather audited financials, trade licence, bank statements and a VAT return (if applicable) well before approaching lenders, rather than assuming the same fast-track timeline salaried applicants often get. Our self-employed mortgage guide covers the document pack in more depth.

What changes for non-resident refinance applicants

Non-residents refinancing a UAE property face a narrower lender panel and typically see loan-to-value capped around 75%, with many banks pricing non-resident refinance files closer to 50-65% LTV in practice depending on income documentation and the currency it's earned in. Rates for non-resident refinances are often 0.10-0.25 points above the resident headline shown in the table earlier in this article, reflecting the added underwriting complexity of verifying overseas income and the absence of a UAE salary relationship. See our dedicated non-resident mortgage guide for the full eligibility picture.

Negotiation tactics that actually move the needle

• Get competing offers in writing first. A bank is far more likely to waive an arrangement fee or sharpen a rate when shown a genuine written offer from a competitor, rather than a vague mention that 'another bank might be cheaper'.
• Lead with your salary transfer, not just your balance. Banks price salary-transfer relationships more aggressively than external-salary refinances, so offering to move your salary transfer as part of the deal is a real bargaining chip.
• Ask specifically about fee waivers, not just rate. Relationship managers rarely volunteer fee waivers upfront; asking directly, especially for balances above AED 1,000,000, often surfaces flexibility that isn't advertised.
• Time your application around campaign periods. Cash-back and fee-waiver campaigns cluster around quarter-ends and mid-year targets — comparing multiple banks at the same time increases the odds one is mid-campaign.
• Don't negotiate on rate alone. A 0.05-point rate concession is often smaller in value than a waived 1% arrangement fee on the same balance — negotiate the all-in cost, not a single line item.

Common refinance mistakes worth avoiding

1. 1Refinancing purely to chase a lower headline rate without netting off the early settlement fee, new arrangement fee and valuation cost against the actual saving.
2. 2Assuming the current bank will match a competing offer without being asked — many will, once presented with a written alternative.
3. 3Ignoring the reversion rate on the new fixed period, which can quietly erode years two and three of the saving.
4. 4Applying to only one bank instead of comparing at least 4-5, which is where most of the real saving is typically found.
5. 5Underestimating processing time for self-employed or non-resident files and missing a promotional pricing window as a result.

Running your numbers through the mortgage calculator before approaching any bank gives you a realistic instalment estimate to negotiate against, rather than relying on a bank's opening offer as your benchmark.

How often these rates change

UAE bank refinance pricing is typically reviewed monthly, sometimes more frequently around EIBOR resets or when a bank is running a specific acquisition campaign. Treat any published table, including this one, as a snapshot rather than a locked-in quote, and always confirm the current offer directly before signing a facility letter.