How does equity release (cash-out) work on a UAE property?
Updated: · By Aknaz Mortgages, RERA ORN 48584
Equity release is a mortgage on a property you own that returns part of its value to you as cash, within the Central Bank's lending limits. The 50% debt-burden ratio applies to your income and repayments. The loan-to-value limit for cash-out is not published here yet, so we confirm it with the bank.
Who this is for
- Owners of a fully paid UAE property who want to borrow against it.
- Owners with a mortgage who want a larger loan on the same property.
- Owners who want cash for a new purchase, a renovation or another purpose.
Key numbers
| Rule | Value |
|---|---|
| Maximum debt-burden ratio (all monthly repayments ÷ gross monthly income) | 50% |
| Maximum mortgage term | 25 years |
| Age at the end of the term, expats | 65 |
| Minimum borrower age | 21 |
| Fixed rate for 1 year | from 3.75% |
Sources: CBUAE Mortgage Loans Regulation; UAE bank practice (varies by bank); Current UAE bank offers. Rates as of 3 November 2026, subject to bank approval and eligibility; rates change. Figures checked on .
Two ways it works
- You own the property outright: the bank lends against it and pays you the cash.
- You still have a mortgage: a new, larger loan pays off the old one, and the difference reaches you as cash. The early settlement fee on the old loan, usually 1%, can apply.
What banks look for
- Your income. The larger instalment must fit within 50% of your gross income; this often limits the cash more than the property does.
- The property’s value, from a new valuation.
- Your age. The term is capped at 25 years and ends by age 65 for expats.
The cash is repaid with interest over the term, so weigh the extra instalment against what the money is for.
How long it takes
The bank values the property and assesses your income. It then issues the final offer, and the new mortgage is registered at the Dubai Land Department.
Frequently asked questions
Is the rate the same as a purchase mortgage?
Not necessarily. Banks price each product separately. Fixed rates for 1 year start from 3.75%, as of 3 November 2026, subject to bank approval and eligibility; rates change. We show you the rate and the full cost for each cash-out option we find.
Does it need a valuation?
Yes. The bank values the property to decide how much it will lend, and the valuation fee starts from AED 2,500 and varies by bank. A valuation below your expectation lowers the amount you can release, so ask the bank to confirm the figure before you commit.
What does releasing equity cost if I still have a mortgage?
The early settlement fee on the old loan, usually 1% of the balance, can apply, and some banks waive it after 5 years with the same bank. The new mortgage is registered at the Dubai Land Department at 0.25% of the loan plus AED 290, and the valuation starts from AED 2,500.
Related guides and tools
Sources
Talk it through with an advisor
A licensed mortgage advisor at Aknaz Mortgages.