Yes, early mortgage settlement in the United Arab Emirates may incur charges. The UAE Central Bank has capped the maximum early settlement fee at 1% of the outstanding loan amount or AED 10,000, whichever is lower. However, the exact charges can vary based on your mortgage agreement and the bank’s policies. In the UAE, most banks charge between 0% and 3%, depending on how the settlement is made—whether through personal funds, selling the property, or refinancing with another bank.
Are there any penalties for settling my mortgage early?
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