UAE Unveils One‑Day Digital Mortgage Release and Central Bank Fee Reforms

The UAE is making it easier—and harder—to deal with property financing, depending on where you stand. In a significant move, the government has rolled out a new digital system that slashes the time it takes to release a mortgage to just one working day. At the same time, new rules from the Central Bank mean buyers can no longer wrap major upfront costs into their home loans. The result? A real estate market that’s getting faster, smarter—and a bit more demanding.

Mortgage Release, Now in Just One Day

The old way of clearing a mortgage in the UAE was, frankly, a hassle. Multiple documents, agency visits, and a whole lot of back and forth. That’s now changing. Thanks to a new digital process introduced by the Ministry of Energy and Infrastructure, along with Emirates Development Bank and local authorities, homeowners can settle and release their mortgages with just a few clicks.

The system, which was tested in Ajman, replaces what used to be a six-step ordeal involving five different agencies. Now it’s fully digital, and everything from cancelling direct debit payments to getting your release confirmation is handled online. It’s a big step toward simplifying real estate transactions and speeding up the process for everyone involved—from individual sellers to large-scale developers.

No More Wrapping Fees Into Mortgages

While the new tech streamlines the back end, the Central Bank’s latest regulation is changing the financial game upfront. As of February 2025, buyers can no longer finance certain closing costs through their mortgage. That means expenses like the 4% Dubai Land Department fee, 2% broker commission, trustee and registration fees, and other title-related charges—all need to be paid out of pocket.

Previously, many banks allowed buyers to bundle those fees into the mortgage, softening the initial blow. That option is now off the table. The shift is designed to promote financial responsibility and reduce overleveraging, especially in a market that’s seen record growth over the past two years.

What This Means for Buyers

If you're planning to buy a home or invest in property, you'll now need more cash upfront—around 6 to 7% of the property’s value on top of the usual down payment. For many, especially first-time buyers or expats using mortgages, this could mean adjusting expectations or timelines.

It’s also likely to push more people toward off-plan properties. Developers are already using this change to their advantage by offering fee waivers, flexible payment plans, or post-handover installments to attract buyers who might now be short on cash.

The Upside for Investors

On the flip side, the new one-day mortgage release system is great news for anyone looking to refinance, sell, or tap into equity. What once took days can now be done in 24 hours, allowing faster deals, quicker transitions between properties, and less friction in high-volume transactions.

The faster turnaround also builds confidence for international investors, who value predictability and speed when moving large amounts of capital.

A Market That’s Evolving Fast

The UAE continues to prove that it’s serious about building a modern, resilient real estate market. These mortgage reforms—one focused on speed, the other on sustainability—send a clear message: the government wants to keep the market moving, but it also wants to keep it grounded.

For buyers, sellers, and agents, it’s more important than ever to understand the new rules, plan ahead, and work with experts who can help navigate both the technical and financial sides of a deal.