Equity Release FAQs

Since equity release increases your total loan balance, interest accumulates over time and can reduce your overall equity position in the property. Other risks include exposure to market fluctuations if property values decline and higher monthly repayment obligations, so it's worth carefully weighing these against alternatives like standard refinancing before proceeding.

Yes, non-residents can access equity release on a UAE property they own, though terms are generally slightly less favourable than for residents, with a lower maximum LTV and stricter income verification requirements. UAE residency visa holders typically qualify for the most competitive rates and highest release amounts.

Typical costs include a bank arrangement fee (around 1% of the loan amount), a property valuation fee, and, if using a mortgage broker, an advisory fee that can range from AED 5,000 to AED 10,000. These costs are in addition to settling any existing mortgage balance, so it's worth requesting a full cost breakdown before proceeding.

Standard requirements include a valid passport, Emirates ID, and residency visa (for residents), along with proof of income, such as a salary certificate or, for self-employed applicants, a trade license and audited financials. Banks will also require a professional property valuation from an approved valuer to determine the releasable equity amount.

Most lenders restrict the use of released funds to specific purposes such as home improvements, property investment, business expansion, or debt consolidation. The released amount is tax-free in the UAE, and while you retain full ownership of your home, the funds are structured as a new loan subject to full income assessment.

Equity release is available to both UAE residents and non-residents who own a qualifying residential property in a freehold area, with a satisfactory credit history and stable income. Age limits generally align with standard mortgage eligibility, with most lenders requiring applicants to be between 21 and 65 years old at loan maturity.

Most UAE banks allow equity release up to 75–80% of the property's value for residents, with slightly lower limits typically applied for non-residents. The exact percentage available to you depends on your income, credit profile, and the property's current valuation.

The amount you can release depends on your property's current market value, your existing mortgage balance, and the bank's Loan-to-Value policy. For example, a property valued at AED 4 million with AED 1 million outstanding on the mortgage may allow equity release of up to AED 2 million, depending on LTV limits and your income-based affordability assessment.

Equity release allows homeowners to unlock cash tied up in their property without selling it or moving out. You borrow against the difference between your home's current market value and any outstanding mortgage balance, known as your equity, and the bank provides this as a new or increased loan secured against the property, while you continue living in and owning your home.