Equity release: borrowing against your property
If you own property in Dubai, you can borrow against it, even if it already has a mortgage. The bank values the property, settles any existing loan and releases the difference. You can use the funds, for example, as the down payment on your next home.
Who it is for
- You own an apartment in Dubai that has gone up in value
- You want to buy another property without selling the first
- You want to refinance your current mortgage and release capital
How it works
- 01
Valuation of your property
The bank values the property at today's market. The valuation sets how much you can borrow.
- 02
Working out the amount
The maximum loan is a share of the valuation. If the property is mortgaged, the outstanding balance is settled from it.
- 03
Income check
As with any mortgage, payments on all your loans must fit within the limit relative to income.
- 04
Release and the next deal
You receive the funds and can use them as a down payment. The two transactions can be sequenced so the timing lines up.
What to watch
- The valuation may come in lower than you expect; leave a margin.
- A new loan increases your debt burden. Check that your next mortgage still works on your income.
- Refinancing costs: mortgage registration, valuation and bank fees.
Documents
- Passport, UAE visa and Emirates ID
- Title Deed
- Liability letter, if mortgaged
- Proof of income
- Bank statements for 6 months
The bank may ask for other documents too.
From practice
A buyer's equity release and a low valuation
The buyer refinanced their own mortgaged apartment and used part of the funds to buy our unit. The bank's valuation came in low, so LTV ended up at 50% instead of the expected 60%. The buyer covered the gap with an additional loan, and the deal closed successfully.
This information is for guidance only. Final mortgage terms are set by the bank after reviewing your documents.
Other scenarios
- 01Mortgage buyoutMove your mortgage to another bank, or buy a property the seller still has a mortgage on
- 02Final 20/80, 40/60 paymentFinance the final payment to the developer at handover
- 03Instalments and penalties → NOCThe buyer's mortgage clears the developer balance and penalties so the NOC can be issued
- 04Non-residentsTerms for non-residents, and how a UAE job changes them