Refinance
Will refinancing affect my credit score in the UAE?
Refinancing your UAE mortgage can cause a small, temporary dip in your credit score due to the credit bureau check the new bank performs, similar to any credit application. This impact is usually minor and short-lived, and consistently meeting your new mortgage's repayments typically helps your score recover and improve over time.
Why a credit check happens
Any UAE bank assessing a mortgage application, including a refinance, will run a credit bureau check as part of standard underwriting. This is recorded as an inquiry and can cause a small, temporary reduction in your credit score, regardless of whether you proceed with that bank.
What actually moves your score
| Activity | Typical effect |
|---|---|
| Single credit bureau inquiry | Small, temporary dip |
| Multiple separate applications to different banks | Larger cumulative dip if not compared together |
| On-time repayments on the new mortgage | Gradual positive effect over months |
| Missed or late payments | Significant negative effect |
How to minimise the impact
- Compare multiple banks through a single application rather than applying separately to each
- Apply within a short window so multiple checks are treated as one exercise where possible
- Keep other credit accounts (credit cards, personal loans) in good standing while you refinance
- Avoid opening new unrelated credit lines shortly before or during your refinance
The longer-term picture
Once your refinance completes, making on-time payments on your new mortgage contributes positively to your credit history, generally outweighing the small initial dip within a few months. Missing payments during or after a refinance would have a far larger negative impact than the credit check itself, and could also affect your debt burden ratio on future applications.
What to check before you apply
- Review your own credit report for errors before submitting a refinance application
- Settle or lower any revolving credit card balances if you're close to the 50% debt burden ratio cap
- Confirm your existing mortgage account will be marked as closed, not defaulted, once settled
Related reading
See our guide to mortgage fees in the UAE and when to refinance for how the overall decision fits together.
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Last reviewed 30 June 2026