Published 8 June 2026 · Updated 8 June 2026

UAE mortgage refinance calculator: how much could switching save you?

By Fatima Al Rashid, Head of Mortgage Research · 10 min read

Calculator uses reducing-balance amortisation. The outstanding balance and remaining term should match your current bank statement. Switching costs default to AED 24,540 (AED 10,000 early settlement cap + ~AED 4,040 new mortgage registration + ~AED 7,500 processing at 0.5% + AED 3,000 valuation on a AED 1.5M balance). Adjust the costs slider to your actual quote. Source: MortgageCompare.ae, June 2026.

How does mortgage refinancing work in the UAE?

Refinancing (also called a buyout or balance transfer) is when a new bank pays off your existing mortgage and you continue paying the new bank at a better rate. Your property, your title deed, and your remaining balance stay the same. Only the lender and the rate change. It is one of the most underused money-saving moves for UAE homeowners, because many people lock in a fixed rate, let it revert to a higher variable rate, and never review it.

The process takes 4 to 6 weeks. The new bank values your property, approves you against current income and CBUAE rules, settles your old loan, and registers the new mortgage at the Land Department. You keep making monthly payments throughout; there is no gap in cover. The saving comes purely from the lower rate applied to your outstanding balance for the rest of the term.

The single biggest trigger to refinance is the end of your fixed period. Most UAE mortgages fix for 1 to 5 years, then revert to EIBOR plus a margin. With the 3-month EIBOR at 3.69% (source: CBUAE, June 2026) and typical reversion margins, many borrowers who fixed in 2023 to 2024 are now paying close to 5% while new customers can get 3.70%. That gap is exactly what refinancing captures.

How much can you save by refinancing?

The saving scales with two things: how big the rate gap is, and how much you still owe. Here is what different new rates do for a borrower currently on 4.99% with a AED 1,500,000 balance and 20 years remaining.

AED 1.5M balance, 20 years remaining, reducing balance. Saving over 20 years is before switching costs. Source: MortgageCompare.ae calculator, June 2026. New rates from our rate tracker.

Even the smallest gap in the table (0.49%) saves nearly AED 100,000 over the term. The total saving figures are before costs, so subtract your switching costs (usually AED 20,000 to AED 25,000) to get the net benefit. The lifetime numbers are large because a small rate cut applies to a big balance for a long time.

What does it cost to refinance in the UAE?

Refinancing is not free, and the costs are what decide whether a small rate gap is worth chasing. Here is the typical breakdown on a AED 1.5M balance.

Indicative costs on a AED 1.5M balance, June 2026. Early settlement cap source: CBUAE. Mortgage registration source: Dubai Land Department. Always get a full cost quote in writing before committing.

The break-even point: the number that decides it

The break-even point is how long it takes for your monthly savings to repay the switching costs. The maths is simple: total switching costs divided by the monthly saving. On the default scenario, AED 24,540 divided by AED 1,037 is 23.7 months, so just under 2 years.

The rule of thumb: if you plan to keep the property and the mortgage longer than the break-even period, refinancing saves you money. Here is how the break-even shifts with the rate gap on a AED 1.5M balance.

AED 1.5M balance, 20 years remaining. Break-even = switching cost / monthly saving. Source: MortgageCompare.ae calculator, June 2026.

This is why a 0.75% gap is the usual cutoff. Below that, the break-even stretches past 3 to 5 years, which only works if you are certain you'll keep the property and not settle early. Above it, the maths is comfortable for most owners. If you can negotiate a processing fee waiver, the break-even shortens significantly and a smaller gap becomes worth chasing.

When refinancing is worth it, and when it isn't

Refinance when:

• Your fixed period is ending and your rate is about to revert to 4.5% or higher while new rates are near 3.70%.
• The rate gap is 0.75% or more and you plan to keep the property at least 3 years.
• You're already on a variable rate paying well above the current best rate, with no early settlement penalty.
• A bank offers a fee waiver that shortens your break-even to under 2 years.

Think twice when:

• You might sell or settle the mortgage before the break-even point.
• You're still inside a fixed period with a break cost that exceeds the CBUAE settlement cap (check your offer letter).
• The rate gap is under 0.5% and no fees are waived, so break-even runs past 5 years.
• Your income or credit profile has weakened since the original approval, which could mean a worse rate or rejection.

If you also want to release equity (borrow more than your current balance against a higher property value), that is a different calculation governed by the same CBUAE loan-to-value limits as a new purchase. Our full refinancing guide covers buyout versus equity release in detail. To see what rate you'd actually qualify for, run the eligibility check and compare live offers on the rates page.

Frequently asked questions

How much can you save by refinancing a mortgage in the UAE?

It depends on the rate gap and balance. Switching a AED 1.5M mortgage with 20 years left from 4.99% to 3.70% saves AED 1,037/month, AED 12,441/year, and AED 248,810 over the term. After roughly AED 24,540 in costs, break-even is about 24 months. A gap of 0.75% or more usually pays off if you keep the property at least 3 years.

What are the costs of refinancing a mortgage in the UAE?

The early settlement fee (CBUAE-capped at 1% of the balance or AED 10,000, whichever is lower), new mortgage registration (0.25% of the loan plus admin in Dubai), the new bank's processing fee (0.5% to 1%), and a valuation (around AED 3,000). On a AED 1.5M balance these total roughly AED 20,000 to AED 25,000. Banks often waive the processing fee to win your business.

What is the break-even point on a mortgage refinance?

It is the number of months for your monthly savings to recover the switching costs: total costs divided by monthly saving. AED 24,540 / AED 1,037 = 23.7 months. If you keep the mortgage longer than the break-even period, refinancing saves money overall. If you might settle before then, it may not.

Should I refinance my UAE mortgage when the fixed rate ends?

Yes, the end of the fixed period is the best time, because your rate is about to revert to EIBOR plus margin, often higher than new-customer rates, and there is usually no early settlement penalty once you're variable. Compare your reversion rate against the best new rates a few months early, and start the process ahead of time since approval and valuation take 4 to 6 weeks.

Is refinancing the same as a mortgage buyout in the UAE?

The terms are used interchangeably. A buyout (balance transfer) is when a new bank pays off your existing mortgage and you continue with them at a better rate, the most common form of UAE refinancing. Equity release is different: you borrow more than your balance to take cash out, subject to the same CBUAE loan-to-value limits as a new purchase.