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What is a security cheque?
A security cheque is an undated cheque, typically for the full loan amount, that you hand to the bank when taking out a mortgage. It isn't used for regular repayments — those are usually collected by direct debit — but acts as a legal fallback the bank can use to pursue you civilly if you seriously default.
What the cheque actually represents
Think of a security cheque as a written promise of the full outstanding debt, held on file rather than cashed. It's distinct from your monthly mortgage instalment, which is generally collected via a standing instruction or direct debit from your salary account.
- Usually written for the full original loan amount, undated
- Held by the bank for the life of the loan, not presented during normal repayment
- Returned to you once the mortgage is fully settled or refinanced elsewhere
- Distinct from any postdated cheques you might separately use for other purposes
The legal position since 2022
The UAE decriminalised bounced cheques for civil debts in 2022 — a dishonoured cheque is no longer automatically treated as a criminal offence. That said, a cheque is still a recognised, enforceable civil debt instrument under UAE law. If a mortgage seriously defaults and the bank presents the security cheque and it's dishonoured, the bank can pursue you through civil proceedings for the amount owed.
How a security cheque differs from your monthly payment method
| Security cheque | Monthly instalment | |
|---|---|---|
| Purpose | Fallback enforcement on serious default | Routine repayment |
| When used | Only if you default seriously | Every month, automatically |
| Collection method | Held on file, presented if needed | Direct debit / standing instruction |
| Amount | Full original loan amount | Fixed monthly instalment |
Why banks still ask for one post-2022
Even though the criminal deterrent has been removed, a security cheque remains valuable to banks as clear documentary evidence of the debt amount, which can streamline a civil claim compared with relying solely on the loan contract. It's a low-cost, standard-form safeguard that most UAE banks continue to require across virtually all mortgage products.
Getting your cheque back
Once you fully settle your mortgage — whether by paying it off or refinancing to another bank — your bank should return the original security cheque to you. Confirm this explicitly in writing as part of your settlement or refinancing process, and check required documents to understand what else is involved at application stage.
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Last reviewed 24 July 2026
