The best time to refinance your mortgage in Dubai will depend on your personal financial situation and the current Dubai mortgage interest rates. It's a good idea to refinance when interest rates are low, as this can help you save money on your monthly mortgage repayments. You may wish to think about remortgaging when you want to:
Keep a fixed-rate mortgage
If you have a fixed-rate mortgage that's nearing the end of its fixed term, you may wish to remortgage. When your fixed rate period finishes, your remaining balance will be subject to a follow-on rate. Remortgaging may offer you a better deal than this follow-on rate so it is a good idea to research your options.
Change the mortgage term
Other than repaying your mortgage early, refinancing is the only way to change the loan term. You can choose to refinance with a shorter mortgage term to pay off the loan amount and build equity faster, or you can refinance for a longer mortgage term to decrease your monthly payments.
You should also consider the fees associated with the process of refinancing. Fees to refinance your mortgage can add up and they may outweigh any potential. Your current lender may apply an early exit penalty which will be absorbed by your new bank into your loan amount. This could be up to 10,000 dirhams.
It's a good idea to speak with a mortgage broker to determine if refinancing or a buyout as it is sometimes known, is the right choice for you.
How long does refinancing take?
The refinancing or buyout process for a Dubai mortgage takes an average of 4-6 weeks.
How do I refinance my mortgage?
To refinance your mortgage in Dubai, you can follow these easy steps.
- Determine your eligibility - Use Holo and select the Refinance option. Enter the information when prompted. You'll be asked questions about your residential and employment status as well as the amount you would be looking to borrow. You'll also need to tell us the outstanding balance on your current mortgage. Don't worry, it's super quick and will take you less time than it takes to boil the kettle.
- Find the best deal - Once you've given us all the information we need, our algorithm works its magic. We'll search all the mortgage products from across the banks and give you the selection that best meets your requirements. You'll be able to compare interest rates and fees from different lenders to find the best deal for you and your buyout needs. Still, got questions? You'll be assigned your own mortgage broker to look after you and your case. Holo's expert will give you a call to discuss your options with you and answer any questions.
- Gather the required documents - Once you have decided on the best mortgage option for your refinancing, Holo will help you make your application to the bank. Our expert Holo mortgage consultants will ask you to submit all the relevant documentation. The documents you need to provide will depend on whether you are an expat or a UAE national, or a resident or non-resident. Don't worry Holo will cross all your i's and dot all your t's for you.
- Apply for refinancing - Once you've given us all your documents, we'll submit your application to the bank on your behalf. If your application to refinance is successful, you'll receive pre-approval from the bank.
- Get your property valued - In exactly the same way you'll need to undergo a property valuation when you purchase a new property, you'll need to get your property valued as part of the buyout process. Once your pre-approval is obtained we'll instruct the valuation of your property with the bank, on your behalf.
- Sign the FOL (Final Offer Letter) - Once the valuation has been completed, the bank will issue the FOL (Final Offer Letter). Once this has been signed the funds will be disbursed to settle your old mortgage.
- Complete the process with the DLD (Dubai Land Department) - The final stage in the process is to de-register your old mortgage and register your new mortgage with the DLD (Dubai Land Department). Again we arrange all of this for you so you don't need to worry about contacting multiple parties.
Refinancing your Dubai mortgage can be complicated but we've set out to remove the headache and make it as simple as possible. The Holo team is here for you at every stage of the process. From the minute you use our mortgage calculator and start searching the market, to the final stage, your Holo Mortgage Consultant is on hand to answer all your questions and keep you in the loop.
Got a question we haven't answered here? Check out our mortgage frequently asked questions.
If you are ready to refinance your mortgage, just use Holo. It's 100% free.
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This blog is for educational purposes, but everyone's case is unique, and local guidelines and regulations may change. Our mortgage advisors can help you with any question you may have and have the latest advice. Get in touch.