Mortgage Buyout in Dubai & UAE - Refinance Your Home Loan at Better Rates
Looking to Buyout your Mortgage? Tired of paying high interest rates? Yazodo helps you explore refinancing your existing home loan at potentially lower interest rates. Whether it’s about independence or better terms, we make mortgage buyouts easier and more manageable.
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Planning a mortgage buyout in Dubai or UAE? Use our free Mortgage Buyout Calculator to estimate your new monthly repayments, potential savings, and loan options before you switch lenders.
Mortgage Buyout Calculator
EMI calculator is for estimation purpose only. Actual eligibility and loan terms are determined by licensed lenders.
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What is Mortgage Buyout?
Mortgage Buyout, also known as mortgage refinancing, is a financial option that allows you to close your existing home loan and refinance it through a new licensed financial institution, potentially at a lower interest rate. This option can help manage high interest costs, making monthly EMIs more manageable and supporting more efficient repayment of your home loan.
If a property is purchased jointly and the home loan is under both names, but the other party wants to sell their share, a mortgage buyout may assist in transferring ownership to a single owner.
Its main purposes are:
- To explore lower interest rates
- To make monthly EMIs more manageable
- To support faster repayment of the loan
- To simplify ownership, especially in joint ownership scenarios
How to Apply for a Mortgage Buyout Loan?
At Yazodo.com, we simplify the process of exploring and applying for the right mortgage loan in the UAE. We provide guidance and connect you with options from top financial institutions, helping you make informed decisions with confidence.
Get Free Eligibility Check
Submit the required details, and our team will review them and provide information on your potential loan options.
Submit Required Documents
Submit your documents to your dedicated account manager, who will review and verify them for accuracy and completeness.
Bank Application Submission
Your account manager will guide you and forward your documents to licensed lenders, keeping you informed throughout.
Final Approval & Disbursement
Once you receive the bank's pre-approval, we assist you in coordinating with the lender to facilitate the loan process.
Documents Required For Mortgage Loan Buyout In UAE
The required documents may vary depending on the bank, and additional documents may be requested. However, they generally include:
- Passport & Visa Copy
- Emirates ID
- Last 6 months Bank Statement
- Salary Certificate & last 6 months Pay Slips
- Tenancy Contract of Residence
- Electricity Bill
- AECB Report
- Proof of personal liabilities – if any (credit cards, loans)
- Existing mortgage Offer Letter / Facility Letter
- Property documents. (MOU, Title deed /Oqood /SPA & unit floor plan copies)
- KYC for Joint Applicant – if any
- Passport & Visa Copy
- Emirates ID
- Last 6 month’s personal bank statements
- Last 12 month’s company bank statements
- Trade License
- MOA , AOA
- AECB Report
- Tenancy Contract of Office.
- Sales & Purchase Invoices sample 3 each
- Passport Visa EID for all partners
- Proof of personal liabilities – if any (credit cards, loans)
- Proof of company liabilities – if any
- KYC for Joint Applicant – if any
- Existing mortgage Offer Letter / Facility Letter
- Property documents. (MOU, Title deed /Oqood /SPA & unit floor plan copies)
- Passport
- ID card issued from the country of residence
- Last 6 months Personal Bank statements
- Last 6 month’s pay slips
- Utility bill copy
- Address proof (tenancy contract or any other proof)
- Credit report issued by the country of residence
- Existing mortgage Offer Letter / Facility Letter
- Property documents. (MOU, Title Deed / Oqood / SPA, Developer SOA & unit floor plan copy)
- KYC for Joint Applicant – if any
- Passport
- ID card issued from the Country of Residence
- Certificate of incorporation
- MOA/AOA
- Last 6 month’s Personal Bank statements
- Last 12 month’s Company Bank statements
- Utility bill copy
- Shareholder’s certificate
- Credit report issued by the country of residence
- Existing mortgage Offer Letter / Facility Letter
- Property documents. (MOU, Title Deed / Oqood / SPA, Developer SOA & unit floor plan copy)
- KYC for Joint Applicant – if any
Call us or share your details for a free eligibility check.
Apply for Mortgage Buyout Pre-Approval
+971 585936654Mortgage Buyout Pre-Approval Requirements in UAE
Employment
- Salaried Employees: Must have at least 6 months of experience in their current job.
- Self-Employed: Must have been running their business for at least 1 year
Income
For Residents & UAE Nationals:
- Minimum income required by most banks: AED 10,000 (Salaried).
- Minimum annual turnover: AED 500,000 (Self-Employed).
- Maximum 50% of income can be allocated to monthly EMI.
For Non-Residents:
- Minimum income required by most banks: AED 25,000 (Salaried).
- Minimum annual turnover: AED 1,000,000 (Self-Employed).
- Maximum 50% of income can be allocated to monthly EMI.
Credit History
A good credit history is essential.
Loan Term
- Up to 25 years
Age Range
Ages 21 to 70 years.
Requirements for pre-approval may vary depending on the lender.
When Should You Consider a Mortgage Buyout in UAE?
A mortgage buyout may be worth exploring in several situations. Here are the most common scenarios where UAE homeowners consider refinancing their existing home loan:
Your Fixed Rate Period Has Ended: Many UAE mortgages start with a fixed interest rate period of 1 to 5 years. When this period ends and the loan changes to a higher floating rate, it is often a good time to explore a mortgage buyout with a new lender offering a better fixed or floating rate.
Interest Rates Have Dropped: If market interest rates have fallen significantly since you took your original mortgage, refinancing through a buyout may allow you to benefit from the lower rate environment and reduce your monthly EMI.
You Want to Change Your Loan Terms: If you want to extend or shorten your remaining loan tenure, switch between fixed and floating rates, or access better repayment flexibility, a mortgage buyout gives you the opportunity to restructure your loan under new terms with a different lender.
You Are Paying High Early Settlement Fees: It is worth calculating whether the savings from a lower interest rate outweigh any early settlement fees charged by your existing lender. In the UAE, early settlement fees are capped at 1% of the outstanding loan or AED 10,000, whichever is lower, making the cost of switching relatively manageable in many cases.
Your Financial Profile Has Improved: If your income has increased or your credit score has improved significantly since you originally took the mortgage, you may now qualify for better rates or terms than were available to you at the time of the original loan.
Yazodo can help you assess whether a mortgage buyout makes financial sense for your specific situation and connect you with the most suitable lenders in the UAE.
Frequently Asked Questions
Can non-residents do a mortgage buyout in UAE?
Yes, non-residents with an existing mortgage on a UAE property may be eligible to explore a mortgage buyout, subject to the new lender’s eligibility criteria and internal policies.
Can I buyout a mortgage without refinancing?
Generally, buying out a mortgage in the UAE involves refinancing. During a mortgage buyout, the existing loan is transferred to a different bank or lender, which is treated as a form of refinancing under standard banking practices.
What is buyout in a mortgage?
Buyout in a UAE mortgage refers to a facility that allows borrowers to pay off their existing mortgage and switch to a new one. Simply put, the new lender pays off the outstanding loan balance using a new loan with updated terms, rates, and conditions.
How long does a mortgage buyout take in UAE?
A mortgage buyout in the UAE typically takes between 4 to 8 weeks from the initial application to final completion, depending on the lender, the complexity of the application, property valuation timeline, and coordination with both the existing and new lender. Yazodo helps streamline the process by managing the documentation and coordination on your behalf.
When should I consider a mortgage buyout in UAE?
A mortgage buyout is worth considering when your fixed rate period ends and your loan reverts to a higher floating rate, when market interest rates have dropped significantly, when your financial profile has improved and you may qualify for better rates, or when you want to change your loan terms such as tenure or repayment structure. Yazodo can help you assess whether a buyout makes financial sense for your specific situation.
What are the main costs of a mortgage buyout in Dubai?
The main costs involved in a mortgage buyout in the UAE typically include the early settlement fee charged by the existing bank (usually capped at 1% of the outstanding loan or AED 10,000, whichever is lower), property valuation fees, new bank arrangement or processing fees, mortgage registration fees at the Dubai Land Department, and other administrative charges related to the new mortgage.
What are the advantages of choosing buyout in UAE?
A primary advantage of choosing a mortgage buyout in the UAE is securing better loan terms, such as a lower interest rate, which can reduce long-term borrowing costs. Moreover, it allows borrowers to refinance their existing mortgage without selling the property. The process is generally more straightforward compared to applying for a completely new mortgage.
How does a mortgage buyout affect my existing loan terms?
Mortgage buyout in the UAE settles your existing mortgage and replaces it with a new mortgage facility. This means your previous interest rate, remaining loan tenure, and existing mortgage are closed. You then move to new terms, interest rate, and repayment schedule with the new bank.
Can I switch lenders with a mortgage buyout in Dubai?
Yes. It is a common purpose of a mortgage buyout in Dubai. You can transfer your mortgage loan to another UAE bank or lender offering buyout facilities that provides different terms, different service features, or a product that suits your current requirements.