6 minute read
When refinancing your UAE mortgage is worth it
The honest math: exit fees, buyout campaigns, and the break-even point.
The trigger
Your fixed period ended and you're on EIBOR plus a fat margin. If your current all-in rate is 1% or more above today's fixed pricing, you're paying a loyalty tax.
On AED 1.5M over 20 remaining years, each 1% is roughly AED 850 a month — AED 200,000+ over the term.
The real cost of switching
Early settlement is capped by the Central Bank at 1% of the balance or AED 10,000, whichever is lower. Add mortgage de-registration and re-registration (~0.25% + fees) and a valuation.
Several banks currently refund valuation and processing fees on buyout completion — which can bring switching costs close to the settlement fee alone.
Break-even
Total switching cost ÷ monthly saving = months to break even. Under 18 months with 5+ years remaining is a clear yes. We run this for free, with your actual statements.
Where this guide can't go: your specifics.
A 15-minute call gets you a personal answer with today's actual rates. Free, and refreshingly unpushy.
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