Yes, it is possible to transfer an existing mortgage to a different financial institution in Dubai. This process is commonly referred to as mortgage refinancing or mortgage transfer. Homeowners in Dubai may choose to transfer their mortgage to take advantage of better interest rates, improved loan terms, or more favorable conditions offered by another bank or financial institution.

Key Steps in Transferring a Mortgage:

1. Evaluate New Mortgage Offers:

   • Begin by comparing the interest rates, fees, and terms offered by various banks. Look for lower interest rates or better terms that can reduce your overall mortgage cost.
     
     

2. Obtain a Mortgage Buyout Offer:

   • Once you identify a better mortgage offer, the new bank will provide a mortgage buyout offer. This offer details the terms under which they will pay off your existing mortgage with your current lender and take over the loan.
     
     

3. Settlement of Existing Mortgage:

   • The new bank will coordinate with your current lender to settle the outstanding mortgage amount. This process typically involves paying off the existing loan in full, including any early settlement fees if applicable.
     
     

4. Registration of the New Mortgage:

   • After the settlement, the new mortgage needs to be registered with the Dubai Land Department (DLD). This step ensures that the property title is updated to reflect the new mortgage holder.
     
     

5. Payment of Fees and Costs:

   • Be aware that mortgage transfers may involve certain costs, such as:
     
     

     • Early Settlement Fees: Usually around 1% to 3% of the outstanding loan amount, paid to the original lender.
       
       

     • Processing Fees: Charged by the new lender for processing the mortgage transfer.
       
       

     • Valuation Fees: The new lender may require a property valuation before approving the transfer.
       
       

     • Dubai Land Department Fees: These fees are required to register the new mortgage with the DLD.
       
       

6. Finalization of the Transfer:

   • Once all documentation is completed and fees are paid, the mortgage transfer is finalized. You will now continue repaying the mortgage under the new lender’s terms.
     
     

Benefits of Mortgage Transfer:

• Lower Interest Rates: By transferring your mortgage, you can secure a lower interest rate, reducing your monthly payments and total interest paid over the loan term.
  
  

• Improved Loan Terms: New lenders may offer more flexible terms, such as a longer repayment period or reduced fees.
  
  

• Access to Additional Funds: Some lenders may allow you to borrow additional funds as part of the mortgage transfer, providing liquidity for other financial needs.
  
  

Considerations:

• Cost vs. Benefit: Carefully consider whether the savings from lower interest rates outweigh the costs of transferring the mortgage, including early settlement fees.
  
  

• Credit Check: The new lender will conduct a credit check as part of the approval process, so ensure your credit history is in good standing.
  
  

Conclusion:

Transferring an existing mortgage to a different financial institution in Dubai can be a strategic move to reduce borrowing costs and secure better loan terms. However, it's essential to weigh the potential benefits against the associated costs and carefully evaluate offers from different banks before proceeding.

Sources:

• Dubai Land Department (DLD)

• UAE Central Bank Guidelines

• Emirates NBD Mortgage Services

• Mashreq Bank Mortgage Transfer Programs