If you took out your UAE mortgage a couple of years ago, you may be paying more than you need to. A mortgage buyout — also called a balance transfer — moves your home loan from your current bank to a new one, usually to secure a lower rate, better terms, or to release equity. With rates where they are, buyouts are one of the most common enquiries we handle right now.
What is a mortgage buyout?
A buyout is when a new bank settles your existing mortgage and takes it over on new terms. Your outstanding balance simply moves across, and you continue your repayments with the new lender — typically at a sharper rate. It is the UAE equivalent of remortgaging.
Why homeowners switch
- Lower your rate. If your fixed period has ended, or you are on a high variable rate, a buyout can reduce your monthly payment.
- Release equity (top-up). If your property has risen in value, you can borrow more against it — for renovations, another purchase, or other needs.
- Better terms. Change your tenure, move from variable to fixed, or leave a lender you are unhappy with.
What a buyout costs
A buyout is only worth it if the savings outweigh the switching costs. Budget for:
- Early settlement fee from your current bank — capped by the UAE Central Bank at 1% of the outstanding balance or AED 10,000, whichever is lower.
- New mortgage registration — 0.25% of the loan at the Land Department, plus admin.
- New bank arrangement and valuation fees — typically around 1% arrangement and AED 2,500–3,500 for the valuation.
We run the full cost-benefit for you before you commit. If a buyout will not actually save you money, we will tell you.
Am I eligible?
You will generally need an existing mortgage with a clean 6–12 month payment history, enough equity in the property, and income that meets the new bank's affordability rules (the 50% debt-burden ratio still applies). Both residents and non-residents can buy out, though the options differ — see our non-resident mortgages guide.
Why use YOUAE for your buyout
Banks rarely advertise their sharpest buyout rates, and the best deal for your profile changes constantly. We compare buyout offers across every UAE lender, calculate the true saving after fees, and manage the switch end to end so it is seamless. It is also worth reading our guides on mortgage refinancing and negotiating a rate reduction.
Buyout mortgage FAQs
Is a mortgage buyout worth it?
It is worth it when the rate saving over your remaining term outweighs the switching costs (early settlement, new registration and fees). We calculate this for you, free, before you decide.
How much can I save with a buyout?
It depends on the gap between your current rate and today's rates, and on your outstanding balance. Even a modest rate reduction on a large balance can add up to a meaningful saving over the term — use our mortgage calculator to see the effect of a lower rate.
Can I release equity when I buy out?
Yes. If your property has appreciated, many lenders will let you increase the loan and take the difference as cash, subject to loan-to-value limits.
Thinking about switching? Book a free buyout assessment and we will tell you exactly what you could save.