In Dubai, the early mortgage settlement fee, also known as the prepayment penalty, is capped by the UAE Central Bank regulations. As of the latest guidelines, the maximum fee that lenders can charge for early settlement of a mortgage is 1% of the outstanding loan amount or AED 10,000, whichever is lower. This cap applies to both partial and full early repayments.

This regulation aims to provide borrowers with greater flexibility in managing their finances and to reduce the cost burden associated with paying off a mortgage before the end of its term. However, it's important to note that individual banks may have specific terms regarding early settlement, so borrowers should review their mortgage agreements carefully and consult with their lenders for precise details​.