Equity Release in the UAE: Borrowing Against Your Dubai Property

Equity release lets you borrow against a property you already own. The bank values it, takes off what you still owe, and lends you part of what is left as cash. In Dubai, most people I work with use it to fund the next purchase, settle a developer balance or pay for a renovation. Below I explain how banks size the loan, what it costs, and the points where deals tend to stall.

What "equity" means to a UAE bank

The Central Bank's mortgage regulations give a precise definition. Equity is the difference between the appraised value of the property and the total claims held against it (CBUAE, Regulations Regarding Mortgage Loans ↗).

Put simply, your home is worth more than you owe on it, and you can turn that gap into cash without selling.

Banks sell the product under different names:

• FAB, Mashreq and several others call it equity release;
• Emirates NBD calls it Loan Against Property;
• Commercial Bank of Dubai uses Refinance your property, and says it can release cash against a fully paid property or refinance with access to extra funds (CBD, Home Loan ↗).

Whatever the label, the bank registers a mortgage over the property in its favour and you receive a loan.

Two starting points

The property is fully paid

This is the easy case. The bank values the unit, applies its LTV and lends, and a new mortgage is registered with DLD.

The property already has a mortgage

Here you are refinancing with a top-up. The new lender clears the old loan and issues a larger one. FAB says so plainly: you may be able to borrow more than you currently owe, depending on the market value against the remaining balance (FAB ↗).

You can also stay with your current bank and have the mortgage amount increased. DLD treats that as a separate Mortgage amendment service.

How the bank sizes the loan

The formula is short:

Available cash = bank valuation × LTV − outstanding debt

Pay attention to the word valuation. The Central Bank defines LTV as the loan outstanding against the appraised value, so the price you originally paid does not come into it (CBUAE ↗).

Here is an illustrative example. It is not an offer, only a way to show the logic:

At 50% LTV the same property releases AED 500,000, so ten points of LTV are worth AED 200,000 in this example. I always plan with a buffer for that reason.

What LTV is realistic

The Central Bank sets the ceilings, and banks are free to go lower. The rulebook has a separate, lower cap for second and subsequent homes and for investment property (CBUAE, Article 3 ↗).

The exact figure for equity release depends on each bank's policy. On its Loan Against Property page, Emirates NBD quotes up to 70% LTV on completed freehold property in Dubai for one client segment, with loans up to AED 10 million and tenors up to 25 years (Emirates NBD ↗). Terms vary between segments, so the first thing we do is confirm the LTV for your profile.

Income still decides

You are taking a loan, not selling a share of the property, so affordability is tested the same way as for a purchase mortgage.

• Total loan repayments can go up to 50% of income (the debt burden ratio, or DBR), and banks are told not to apply that maximum automatically (CBUAE, Article 3 ↗).
• The DBR is stress-tested at 2 to 4 percentage points above the current rate.
• If the property is let, at least two months' rent is deducted to allow for void periods.
• The maximum tenor is 25 years, and the bank sets its own age limit at maturity.

Planning to release equity and then take a second mortgage? Model both repayments together. Otherwise the first loan quietly uses up the room you need for the second.

What it costs

Everything in this table is confirmed on official pages. For a specific bank's own tariff, check its Key Facts Statement.

If the mortgage moves to a new lender, DLD records a Mortgage transfer. That means 0.25% of the mortgage value, the title deed fee and a no-objection letter from the previous bank (DLD ↗).

The Central Bank also states that borrowers who want to refinance elsewhere should face no impediment (CBUAE ↗).

Documents

Every bank has its own list. As a reference point, here is the typical baseline Commercial Bank of Dubai publishes (CBD ↗).

Salaried:

• application form and credit bureau consent;
• passport, residence visa and Emirates ID;
• three months of bank statements (new customers);
• salary certificate.

Self-employed:

• application form and bureau consent;
• trade licence, Chamber of Commerce registration, memorandum and articles;
• twelve months of company and personal statements (new customers).

For the property itself you need the title deed. If it is mortgaged, add a liability letter showing the balance, and if it is let, the tenancy contract.

The process, step by step

1. We run the numbers: likely valuation based on recent sales in the building, your balance, and DBR with every loan included.
2. We pick the lender by comparing LTV, rate, fees and early settlement terms.
3. The bank issues a pre-approval after checking income and credit history.
4. An independent valuer from the bank's approved panel inspects the property. The rulebook requires this before the bank makes any irrevocable commitment to lend.
5. You receive the final offer and sign.
6. The old loan is settled (if there is one) and the new mortgage is registered with DLD.
7. The funds are released.

The valuation is the step you control least. When it comes in low, the cash shrinks. I go into this in what to do when the bank's valuation is low.

From my practice. One deal of mine took two and a half months. The buyer refinanced a flat that was already mortgaged and put part of the money towards a developer unit that still had a post-handover balance and penalties. We had the penalties included in the statement of account so the bank could see the full amount. The bank's valuation came in lower than we expected, and the LTV ended up at 50% instead of 60%. The buyer covered the difference with additional financing, and the deal closed successfully. Since then I always model the lower-LTV scenario up front.

Good uses and poor ones

FAB lists reinvesting, buying another property and renovating as typical reasons (FAB ↗). With my clients, the money most often goes to:

• the down payment on the next purchase;
• clearing a developer balance to get the NOC (see NOC and penalties);
• the handover payment (handover payment mortgage).

I would not release equity "just in case". Interest runs from day one, and your home stays pledged the whole time.

Risks I always spell out

• A variable rate can rise. That is the reason the Central Bank insists on a stress test.
• Two loans still run on one income. If your income drops, both repayments remain.
• Rent is never certain. Banks assume at least two empty months, and you should too.
• Selling takes an extra step. A mortgaged property can be sold, but only through a liability letter and loan closure.
• Valuation reports must not reflect expected price growth. If your plan relies on the flat being worth more next year, the bank's numbers will not.

When it makes sense

• The property is completed, in your name and worth well above the debt.
• Your income passes DBR with the new payment and the stress test.
• The money has a specific job and a timeline.
• You have checked what happens if the LTV comes in ten points lower.

If all four apply, equity release is a sound tool. There is more detail on the equity release page.

Next step

The mortgage navigator takes a couple of minutes and shows whether equity release fits you and what LTV is realistic. You can also check repayments in the calculator. If you would like your own numbers reviewed, message me on WhatsApp. I took out my own mortgage with Commercial Bank of Dubai in December 2025, and I handle these deals from the first calculation to DLD registration.