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Equity release in the UAE (2026): how much you can unlock, what it costs and what banks allow
Equity release in the UAE is an ordinary repayment mortgage on a home you already own. The bank lends up to 80% of its valuation on a UAE resident's first home (85% for UAE nationals), clears what you owe and pays you the rest. On a AED 2,000,000 home with AED 700,000 owed, that is about AED 863,000 to 883,000 after fees.
Key takeaways
- Limits: 85% (UAE nationals) or 80% (residents) on a first home up to AED 5m; 65% or 60% on a second property.
- Buying, building or renovating gets mortgage terms up to 25 years; other purposes fall under personal-loan limits (48 months, 20× salary).
- Switching banks to release equity costs about AED 17,000 to 37,000 upfront on a AED 1.6m loan (illustrative).
- All debt payments must stay within 50% of income; most banks want the loan repaid by 65 or 70.
- It is not a UK-style lifetime mortgage: you repay monthly and keep the home.
What is equity release in the UAE?
Equity release is a new mortgage on a property you already own, fully or partly paid off. The bank lends a percentage of today's valuation, settles any existing mortgage and pays you the difference. You keep the home and repay monthly, like any home loan. It is also called a cash-out refinance or a loan against property.
It is not a UK lifetime mortgage, a common mix-up. UK lifetime mortgages are for homeowners aged 55 and over, repayments are optional, and the loan is repaid from the sale of the home after death or a move into long-term care. The UAE has no such scheme: you need income to qualify and you repay from month one.
How much equity can I release from my home in the UAE?
Multiply the bank's valuation by your loan-to-value (LTV) limit, subtract what you owe, then subtract fees. The UAE Central Bank caps LTV at 80% for a UAE resident's first home up to AED 5 million and 85% for UAE nationals, with lower limits above AED 5 million and on additional properties.
Bank valuation × LTV limit − amount still owed − fees = cash in your account
| Property | UAE national | UAE resident | Non-resident |
|---|---|---|---|
| First home, up to AED 5m | 85% | 80% | Usually 50% to 65%* |
| First home, above AED 5m | 75% | 70% | Usually 50% to 65%* |
| Second or further property | 65% | 60% | Usually 50% to 65%* |
*Bank policy, not regulation. The loan also cannot exceed 7 times annual income (expats) or 8 times (UAE nationals), the term is capped at 25 years, and the value used is the bank's valuation, not your purchase price.
How much cash would I get from a AED 2 million home?
Illustrative example: a UAE resident's first home is valued at AED 2,000,000 with AED 700,000 still owed. At 80%, the new loan is AED 1,600,000, leaving AED 900,000 before fees. After switching-bank fees of about AED 17,000 to 37,000, roughly AED 863,000 to 883,000 reaches your account. The payment is about AED 8,670 a month over 25 years.
| Step | Amount |
|---|---|
| Bank valuation | AED 2,000,000 |
| × 80% limit (UAE resident, first home) | AED 1,600,000 |
| − Still owed | AED 700,000 |
| = Cash before fees | AED 900,000 |
| − Fees when switching banks | AED 17,000 to 37,000 |
| = Cash in your account | About AED 863,000 to 883,000 |
| Monthly payment (25 years, 4.25%) | About AED 8,670 |
Illustrative example, not a real customer. Actual rates depend on your profile. Low end: Dubai Land Department (DLD) registration AED 4,270, trustee AED 4,200, early settlement AED 7,350 and DLD release AED 1,585. High end adds valuation (AED 2,625) and a 1% + VAT processing fee (AED 16,800).
A UAE national's 85% limit gives AED 1,700,000, or AED 1,000,000 before fees. As a resident's second property, 60% leaves AED 500,000.
What can I use equity release money for in the UAE?
Property purposes get mortgage terms: buying another property, building or renovating. Under UAE Central Bank guidance N 5060/2019, a home-secured loan for anything else, such as business capital, school fees or clearing debts, must follow personal-loan rules: at most 48 months and 20 times salary. So equity release cash is not “for anything”.
The guidance (effective 4 December 2019) defines a mortgage as a loan on residential property for constructing, purchasing or renovating a house, or buying or developing land. Banks apply it: ADIB's key facts statement describes its finance against property as being “for the purpose of purchasing another property, construction or renovation”.
It also says banks must not take private houses as security for personal loans, and the 2011 personal-loan rules spell this out for non-UAE nationals. So a non-property purpose means a shorter, smaller loan, and for residents it may not be possible against the home at all. State the real purpose up front.
What are equity release rates in the UAE right now?
As of 28 September 2026, the UAE Central Bank base rate is 3.90%, up from 3.65% on 16 September, and 3-month EIBOR, the benchmark variable mortgages track, is 4.30575%. According to The National, three-year fixed mortgages started from around 3.89% in mid-September, with major banks at 3.99% to 4.24% on an AED 1m loan. Variable deals are EIBOR plus a margin.
Illustrative, actual rates depend on your profile. Each 0.25-point rise adds about AED 226 a month to a AED 1.6m, 25-year loan.
What are the three ways to release equity?
Top up with your current bank, switch to a new bank and take cash out in the same step, or release from a home you own outright. The right route depends on your current rate, when your fixed period ends and how much you need. Compare them on net cash after fees, not the headline loan.
1. Top up with your current bank
Your bank lends more against the same home. The DLD charges 0.25% of the increase only, plus a AED 2,000 + VAT service fee: about AED 4,400 on a AED 900,000 top-up, before valuation or processing. But you see only one bank's price.
2. Switch and release
What most people call a cash-out refinance in Dubai: a new bank clears your mortgage and adds the cash. You pay your current bank an early settlement fee (1% of the balance or AED 10,000, whichever is lower) and a DLD release fee. It suits you when your fixed period is ending or a new rate saves more than the switching costs; the refinancing calculator runs that maths.
3. Release from a paid-off home
Nothing to settle, so most of the value is available. The same AED 2,000,000 home owned outright by a resident supports AED 1,600,000; after roughly AED 8,500 to 28,000 of fees, about AED 1.57m to 1.59m is paid to you. The bank registers a new mortgage on your title deed.
Illustrative, actual rates and fees depend on your profile and the bank.
How much does equity release cost in Dubai?
Expect a valuation, a possible bank processing fee, DLD mortgage registration at 0.25% of the loan and a trustee service fee. Switching banks adds an early settlement fee and a DLD release fee. On a AED 1.6m loan when switching, that is typically AED 17,000 to 37,000 upfront (illustrative), plus ongoing life and property insurance.
| Fee | Typical amount (Sep 2026) | When it applies |
|---|---|---|
| Valuation | AED 2,500 to 3,500 + VAT | Always; often refunded in promotions |
| Bank processing | 0% to 1% of the loan + VAT | Depends on the offer; often waived |
| DLD mortgage registration | 0.25% of the loan + about AED 270 | New loan; top-up: 0.25% of the increase |
| Trustee service | AED 4,000 + VAT | New loan; top-up: AED 2,000 + VAT |
| Early settlement | 1% of balance or AED 10,000, whichever is lower, + VAT | Switching only |
| DLD mortgage release | About AED 1,270 + AED 300 service + VAT | Switching only |
| Life and property insurance | Set by the bank | Every mortgage |
| Broker fee (Banqy) | AED 0 | Banks pay Banqy on completion |
DLD fees are from its e-services pages, updated 23 September 2026. There is no Central Bank cap on processing fees, so compare them.
How do income, debts and age affect how much I can release?
Three limits can cap the loan below the LTV ceiling. All monthly debt payments must stay within 50% of income, or 30% for retirees. The loan cannot exceed 7 times annual income for expats or 8 times for UAE nationals. And your age at maturity sets the term, so a shorter term means a higher payment.
On the AED 1.6m loan above, the AED 8,670 payment needs about AED 17,340 a month of income with no other debts, but a resident's 7× income cap needs about AED 19,050. Many banks count credit cards at about 5% of the limit, and banks must stress-test at 2 to 4 points above the current rate.
Most banks want the loan repaid by 65 for salaried residents, and some allow 70 for UAE nationals and the self-employed. At 50, a resident has 15 years: the same loan costs about AED 12,040 a month and needs roughly AED 24,070 of income.
Illustrative, actual rates depend on your profile. Payments at 4.25%.
Who does equity release suit?
It suits owners with real equity from repayments or rising prices, stable income to carry a larger loan, and a property purpose for the cash. It suits less well anyone who needs a small sum, plans to sell soon or wants money for spending, where fees and personal-loan limits change the maths.
- UAE nationals with appreciated homes. The 85% limit, an 8× income multiple and, at some banks, a maturity age of 70 can release a large sum from a home bought years ago.
- Owners with pension or rental income. Some banks recognise both for affordability. Retirees face a 30% debt-burden limit.
- Owners buying their next property. The most common reason. A down payment must come from your own resources rather than other borrowing, so banks look closely at how two loans fit together; second-property limits are 60% to 65%. See investment property financing.
Is there an Islamic equity release option?
Yes. Islamic banks usually structure it as a purchase and lease-back (Ijarah): the bank buys an interest in your property at today's valuation and leases it back to you, and you pay rent plus instalments until the home is fully yours again. The price is a profit rate rather than interest, and fees follow the same pattern.
The same LTV, debt-burden and use-of-funds rules apply, so choose by goal and numbers. See how Islamic home finance works.
What are the risks, and when should you not release equity?
The main risks are a bigger debt for longer, a rate that can rise after the fixed period and fees that swallow small releases. The new payment also uses borrowing capacity you may want later. Think twice if you need a small sum briefly, plan to sell soon or your income is uncertain.
- Total cost. AED 1.6m over 25 years at 4.25% means about AED 1.0m of interest if the rate never changes.
- Rate reset. After the fixed period, loans usually move to EIBOR plus a margin; each 0.25 points adds about AED 226 a month here.
- Fees versus amount. AED 17,000 to 37,000 is 2% to 4% of a AED 900,000 release, far more of a AED 100,000 one.
- Valuation. AED 100,000 lower at an 80% limit means AED 80,000 less cash.
Illustrative, actual rates depend on your profile.
Equity release, personal loan or selling: how do they compare?
Equity release gives the largest sum over the longest term at mortgage-level pricing, but costs more upfront and takes weeks. A personal loan is faster but capped at 20 times salary over 48 months. Selling frees all your equity with no new debt, but you lose the home and pay selling costs.
| Equity release | Personal loan | Selling | |
|---|---|---|---|
| Keep your home | Yes | Yes | No |
| Maximum term | 25 years | 48 months | None |
| How much | Up to your LTV limit | Up to 20× monthly salary | All equity, minus selling costs |
| Pricing | Mortgage-level rates | Usually higher | No interest |
| Upfront costs | Valuation, DLD, bank fees | Usually low | Agent commission, sale costs |
| Time to cash | Typically 3 to 8 weeks | Days | Until you find a buyer |
Illustrative, actual rates depend on your profile. Term alone changes the payment: AED 500,000 at the same 4.25% costs about AED 2,710 a month over 25 years, or AED 11,350 over 48 months.
How does equity release work, and how long does it take?
Typically 3 to 8 weeks for UAE residents, from first conversation to cash. The DLD registration itself takes about 20 to 25 minutes; most of the time goes into the valuation, the bank's approval and, if you are switching, your current bank's liability letter. Non-resident cases can take longer.
- Check your numbers (day 1). Value, amount owed, income, debts and purpose. The equity release calculator shows net cash after fees.
- Compare offers (days 1 to 3). The rate, the fees and the rate after the fixed period.
- Submit documents (week 1). ID, income proof, title deed and, if switching, a liability letter.
- Valuation and approval (weeks 1 to 4). The bank's valuer sets the value; the bank issues its offer.
- Settlement and DLD (weeks 3 to 8). The old loan is cleared, the new mortgage registered and the cash paid to you.
Banqy compares equity release, buyout and top-up offers from 16 UAE banks, conventional and Islamic, and shows the net cash after fees before you commit. Banks pay us on completion, so there is no broker fee to you. Apply online or message an advisor on WhatsApp.
Related guide: Mortgage buyout in the UAE (2026): when switching banks actually saves you money
See your net cash after fees.
Enter your home's value and what you owe; the calculator applies the LTV, income and fee rules in this guide.
Frequently asked questions
Is equity release in the UAE the same as a lifetime or reverse mortgage?
No. UK lifetime mortgages are for over-55s, repayments are optional and the loan is repaid when the home is sold. UAE equity release is a standard repayment mortgage: you need qualifying income, repay monthly from the start and usually finish by 65 or 70.
Can I release equity if I still have a mortgage?
Yes. Your current bank can top up the loan, or a new bank can buy out your mortgage and add cash in one transaction. Switching costs an early settlement fee of 1% of the balance or AED 10,000, whichever is lower, plus a DLD release fee.
Can I use equity release to pay off credit cards or fund a business?
Not on mortgage terms. Under UAE Central Bank guidance N 5060/2019, a home-secured loan for a non-property purpose follows personal-loan rules: up to 48 months and 20 times salary. Banks must not take private houses as security for personal loans, so options are limited and differ for UAE nationals and residents.
Can expats and non-residents release equity in the UAE?
Yes. Residents follow the same LTV limits as buyers, up to 80% on a first home worth up to AED 5 million. For non-residents it is bank policy, usually 50% to 65%; 9 of the 16 banks Banqy compares list non-resident equity release or buyout options.
Can I release equity from an off-plan property?
Not while it is under construction: banks need a completed property with the title deed in your name. At handover, some banks can finance the remaining balance and release part of what you paid the developer, so plan before handover.
What happens if the bank's valuation is lower than I expected?
The loan follows the bank's valuation, not your purchase price. A valuation AED 100,000 lower cuts your cash by AED 80,000 at an 80% limit. Approved valuers can differ between banks, which is one reason to compare.
Will equity release affect my credit score?
Checking your numbers does not. When you apply, the bank runs an AECB credit check with your consent, as for any mortgage, and the new payment counts towards your 50% debt-burden limit.
Does Banqy charge a fee for equity release?
No. Banks pay Banqy when your mortgage completes, so comparison and advice cost you nothing. You pay only the bank and government fees, itemised before you sign.
Sources
- CBUAE Rulebook: Loans Against Property (Loans to Individuals), N 5060/2019 (checked 29 Sep 2026)
- CBUAE Rulebook: Mortgage Regulation, Article 3, Important ratios (checked 29 Sep 2026)
- CBUAE Rulebook: Regulation No. 29/2011, bank loans to individual customers (checked 29 Sep 2026)
- CBUAE Rulebook: Clarifications and Guidelines Manual, Regulation No. 29/2011 (checked 29 Sep 2026)
- Central Bank of the UAE: EIBOR rates (fixing of 28 Sep 2026)
- Dubai Land Department: Mortgage registration (updated 23 Sep 2026)
- Dubai Land Department: Mortgage release (updated 23 Sep 2026)
- Dubai Land Department: Mortgage amendment (updated 23 Sep 2026)
- Gulf News: UAE interest rates rise to 3.9% (16 Sep 2026)
- The National: UAE interest rates set to rise, but did borrowing get easier? (17 Sep 2026)
- ADIB: Finance Against Property (checked 29 Sep 2026)
- ADIB: Home Finance Key Facts Statement (checked 29 Sep 2026)
- MoneyHelper (UK): What is equity release? (checked 29 Sep 2026)
DIGIDEED MORTGAGE BROKER L.L.C, trading as Banqy · DED Dubai Licence No. 1200167 · Authorised Mortgage Broker (RERA, Dubai Land Department) · Dubai, UAE.
This content is for general information and is not regulated financial advice. All figures and percentages shown are illustrative; actual terms depend on your profile and the bank's policy at the time of application.
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