Equity Release in Dubai & UAE - Unlock Your Property Value Without Selling
Need access to funds without selling your home? We help you understand Mortgage Equity Release solutions in the UAE and explore how you may utilize the equity built up in your property. Whether you need funds for buying new property, personal use or business expansion.
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Planning to release equity from your UAE property? Use our free Equity Release Calculator to estimate your available equity, monthly repayments, and loan options before you apply.
Mortgage Buyout + Equity 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 Equity Release?
Mortgage Equity Release is a financial solution for customers or homeowners, typically aged 21 or older to release an additional cash from the equity built up in their property. It allows the applicant to have access to cash against their property to use it for personal use or investment purposes without selling it or moving out. It’s a type of refinancing option that allows you to borrow against the current value of your home.
Here, the term “Equity” refers to the difference between your home’s current market value and the outstanding mortgage balance.
In the UAE, equity release is basically a type of cash-out refinancing:
- You already own a property (fully or with an existing mortgage).
- The bank reassesses the property’s market value.
- Based on your eligibility and loan-to-value (LTV) ratio, they allow you to borrow additional funds against that equity.
- You repay this amount like a normal mortgage with monthly installments.
How to Apply for an Equity Release in UAE
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 Equity Release In UAE
The required documents may vary depending on the lender, 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)
- Property documents (MOU, Title Deed / Oqood / SPA, Developer SOA & unit floor plan copy)
- 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
- Property documents (MOU, Title Deed / Oqood / SPA, Developer SOA & unit floor plan copy)
- 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
- 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
- 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.
Start Your Equity Release Pre-Approval
+971 585936654Conditions for Equity Release Pre-Approval
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.
Down Payment
If the property value is less than AED 5 million, UAE Nationals need a down payment starting from 15%, UAE Residents from 20%, and Non-Residents from 40%.
For properties valued above AED 5 million, UAE Nationals require a down payment starting from 25%, UAE Residents from 30%, and Non-Residents from 50%.
The required down payment depends on the bank policies, buyer profile, and whether it is their first, second, or third property.
Loan Term
- Up to 25 years
Age Range
Ages 21 to 70 years.
Requirements for pre-approval may vary depending on the lender.
Equity Release vs Loan Against Property in UAE
Many UAE property owners are unsure whether to apply for an Equity Release or a Loan Against Property (LAP) in the UAE. While both options allow you to access funds against your property without selling it, there are some important differences to consider before applying:
Purpose: Equity Release is designed for property owners who want to access the value built up in their existing property, whether it currently has a mortgage or is fully paid off. A Loan Against Property (LAP), on the other hand, is a broader financing solution that allows borrowers to secure a loan against residential or commercial property and use the funds for a wide range of personal or business purposes.
Property Type: Equity release in the UAE typically focuses on residential properties. LAP may accept a wider range of property types including commercial properties, warehouses, and industrial units.
Existing Mortgage: Equity Release allows homeowners to access funds from the equity in their property even if there is an existing mortgage. In contrast, a Loan Against Property (LAP) may have different requirements depending on the lender, and any existing mortgage may need to be settled or restructured as part of the loan arrangement.
Not sure which option is right for you? Speak to Yazodo for expert guidance and a free eligibility check.
How to Calculate Your Property Equity in the UAE
Understanding how much equity you have in your property is the first step before exploring equity release options. The calculation is straightforward:
Available Equity = Current Market Value of Property − Outstanding Mortgage Balance
For example, if your property is currently valued at AED 2,000,000 and your outstanding mortgage balance is AED 800,000, your available equity is AED 1,200,000. However, lenders in the UAE do not allow you to release 100% of your available equity.
The maximum amount you can borrow is determined by the lender’s Loan-to-Value (LTV) ratio, which typically allows total financing of up to 50% to 80% of the property’s current market value, depending on your residency status and your financial profile.
Using the same example above, if the lender allows an LTV of 75%, the maximum total financing would be AED 1,500,000 (75% of AED 2,000,000). After deducting the outstanding mortgage of AED 800,000, the maximum equity you could release would be AED 700,000, subject to your eligibility and the lender’s approval.
Frequently Asked Questions
Can I release equity from my property as a non-resident?
Yes, non-residents may be eligible to release equity from a property in the UAE. Eligibility depends on factors such as the applicant’s financial profile, property type, location, and the lending criteria of UAE banks. In many cases, banks may offer equity release up to around 50–60% of the property’s current market value, with funds generally used for approved purposes in line with bank policies.
What properties are eligible for equity release in UAE?
Most UAE banks accept residential properties including villas and apartments for equity release. Some lenders may also consider commercial properties depending on their internal policy. The property must be legally owned by the applicant, registered in the UAE, and free from any legal disputes. Eligibility of the property type is subject to the lender’s assessment and internal criteria.
How long does equity release pre approval take in UAE?
The equity release pre approval process in the UAE typically takes between 2 to 6 weeks, depending on the lender, complexity of your application and document verification. Yazodo helps streamline the process by ensuring your application is complete and accurately submitted from the start.
How does equity release work in the UAE?
Equity release in the UAE works as a loan taken against the value accumulated in a property you own. This financing option allows eligible homeowners, subject to bank approval, to access a portion of their property’s market value in cash, while generally retaining ownership.
What can I use equity release funds for in the UAE?
Equity release funds in the UAE can generally be used for property investment, business expansion, home renovation, debt consolidation, education expenses, or medical costs, subject to the lender’s terms and conditions.
What happens when you take equity out of your mortgage in the UAE?
When you release equity from a property in the UAE, the bank reassesses the property’s current market value and your existing mortgage balance. Based on this, the lender may offer an equity release or refinancing option secured against the property. The released amount becomes part of your total loan and is repaid under the revised mortgage terms, while ownership of the property remains with you.
What is the maximum equity release on a mortgage?
In the UAE, the maximum equity you can release is generally based on the bank’s loan-to-value (LTV) limits, the property type, residency status, and the borrower’s financial profile. In most cases, total financing (existing loan plus equity release) may go up to around 60% to 80% of the property’s current market value. Final eligibility and amounts are determined by the lender’s criteria
Can I release equity with an existing mortgage?
Yes, equity release may be possible even if you have an existing mortgage in the UAE. In most cases, this is done through a remortgage or top-up with the existing lender, subject to the bank’s assessment and eligibility criteria. The approved amount depends on the property value, outstanding loan balance, and borrower profile.
Can I release equity on a jointly owned property?
Yes, equity release is available in the UAE for jointly owned properties. In such cases, all registered co-owners are generally required to provide consent and meet the lender’s eligibility criteria.