What is a mortgage buyout in the UAE?

A buyout (refinance/balance transfer) is when a new bank pays off your existing mortgage and you continue with the new bank at better terms. The property is not transferred, so the 4% DLD transfer fee does not apply.

What does a buyout cost?

Typical costs: mortgage release fee AED 1,290, new mortgage registration 0.25% of the loan, valuation AED 2,625-3,150, and an early settlement fee to the old bank capped at 1% or AED 10,000 (whichever is lower). All-in on a AED 1.5M loan: roughly AED 15-20K, sometimes reduced by campaign waivers.

Do I pay the 4% DLD fee when refinancing?

No. The DLD transfer fee applies to property transfers. In a buyout only the mortgage moves banks, so you pay release and re-registration fees instead - a fraction of 4%.

How much can a buyout save?

Example: AED 1.5M outstanding over 20 years at 4.99% costs about AED 9,890/month; at 3.99% about AED 9,080/month - roughly AED 810/month saved, breaking even on switching costs in under two years.

Mortgage Buyout in the UAE

Switch your mortgage to a cheaper bank — recent buyout campaigns from 3.99%, with fee waivers. Commission-free advice.

Why buyouts are cheaper than people think

DLD transfer fee (4% of value)NOT payable — no property transfer

Mortgage release fee discharging the old mortgageAED 1,290

New mortgage registration 0.25% of loane.g. AED 3,750 on AED 1.5M

Valuation fee varies by bankAED 2,625 – 3,150

Early settlement fee to your old bank UAE-cappedmax 1% (capped AED 10,000)

Typical all-in switching cost on a AED 1.5M loan: roughly AED 15–20K — often recovered within months if your rate drops 0.5–1%. Some campaigns waive valuation and settlement fees entirely.

What is a mortgage buyout?

A buyout (also called refinancing or a balance transfer) means a new bank pays off your existing mortgage and you continue with the new bank — usually at a lower rate, a fresh fixed period, or better terms. The property doesn't change hands, which is why the big 4% DLD transfer fee doesn't apply.

When does a buyout make sense?

Three classic triggers: (1) your fixed period is ending and the reversion rate (margin + EIBOR) is far above fresh fixed offers; (2) rates have fallen since you signed — if you locked in above ~4.5%, today's advertised fixed rates from 3.78% deserve a look; (3) you want cash out — some banks allow topping up while switching (see equity release).

Recent buyout campaigns (from verified bank circulars)

From our bank-circular tracking: RAKBANK ran a 3.99% buyout for all segments (April 2026, with fee incentives); ADIB ran a 3.99% fixed buyout with valuation and early-settlement fees waived (Q2 campaign, ended 30 June); Emirates NBD cut its early-settlement fee on top-ups to 0.50% (max AED 5,000). Campaigns rotate constantly — the best buyout bank this month is rarely the same as last month, and that's exactly what we track.

The savings math (worked example)

AED 1.5M outstanding, 20 years left, at 4.99% → ~AED 9,890/month. Switch to 3.99% → ~AED 9,080/month. That's ~AED 810/month saved (AED 9,700/year) — against a one-time switching cost of ~AED 15–20K, you break even in under two years and save six figures over the loan's life. We run this math for your exact case, free.

Current bank rates → · Check your DBR → · Payment calculator →

Buyout FAQs

Do I pay the 4% DLD fee again on a buyout?

No. The property isn't being transferred — only the mortgage moves banks. You pay a mortgage release fee (AED 1,290), new mortgage registration (0.25% of the loan) and trustee-office charges, not the 4% transfer fee.

What does my old bank charge me for leaving?

An early settlement fee, capped by UAE regulation at 1% of the outstanding balance or AED 10,000, whichever is lower. Some campaigns reimburse it.

How long does a buyout take?

Typically 3–6 weeks end to end: new bank approval, liability letter from your old bank, settlement, release and re-registration. We manage the sequence so nothing stalls.

Can I borrow extra while switching?

Often yes — a buyout with top-up (equity release) lets you refinance and take cash out in one move, subject to LTV caps and your DBR.

Is it worth switching for a 0.25% saving?

Usually not on its own — the sweet spot starts around 0.5–1% rate improvement, or when your reversion rate is about to jump. We'll tell you honestly if staying put is the better call.

Find out what a buyout saves YOU Send us your current rate and balance — we'll compare live buyout offers across 28 banks and show the break-even. Free.

Check my savings