Refinance
Can I refinance a mortgage on a property I own outright?
Yes, you can take a new mortgage against a UAE property you own outright, effectively an equity release loan, typically up to 60-70% of its current market value for residents. Since there's no existing mortgage to settle, the entire approved amount can generally be paid out to you, subject to income and debt burden checks.
How this differs from a standard refinance
A typical refinance moves an existing mortgage from one bank to another. Mortgaging a property you own outright is technically a new mortgage secured against an unencumbered property, but it works the same way as equity release: the bank values the property and lends you a percentage of that value, and since there's no existing lender to settle, there's no early settlement penalty on this property.
Worked example
If your outright-owned property is valued at AED 2,500,000 and your bank offers 65% LTV as a resident, your maximum loan is roughly AED 1,625,000. Because there's no existing balance to repay, this entire amount (minus refinance costs such as valuation and arrangement fees) can be paid out to you, subject to affordability checks.
Key considerations
| Borrower type | Typical maximum LTV |
|---|---|
| UAE resident | 60-70% |
| Non-resident | 50-60% |
- Your income and existing debts must fit within the 50% debt burden ratio cap
- Maximum term is 25 years, and the loan must be repaid before you reach maximum age at maturity (65 salaried, 70 self-employed)
- A fresh, independent valuation sets the basis for your maximum loan amount
- Some banks restrict how the released funds can be used, similar to standard equity release
Why owners do this
Common reasons include funding a second property purchase, business investment, renovation, or consolidating other debts into a single, lower-cost mortgage payment. Comparing multiple banks matters here too, since LTV limits and rates on this product vary more between lenders than on a standard purchase mortgage — use our comparison or a mortgage calculator to see indicative repayments first.
Costs to expect
- Arrangement fee, typically 0-1% of the new loan
- Valuation fee, typically AED 2,500-3,500
- Mortgage registration and trustee fees at the land department
Next step
Read more on equity release in the UAE to understand eligibility and use restrictions.
Run the numbers on your own case
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Last reviewed 27 June 2026