Once you've settled into your new home, you may start wondering whether it's worth paying off your mortgage ahead of schedule. Early repayment can reduce the amount of interest paid over the life of the loan, but it's important to understand your lender's policies before making extra payments.
UAE Central Bank Early Settlement Fee Rules
Under UAE Central Bank regulations, early settlement fees charged by banks are capped at 1% of the remaining outstanding loan balance or AED 10,000 (whichever is lower).
Additionally, many banks allow partial overpayments of up to 10% of your remaining loan balance per year without charging any early settlement fees.
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Whether you're considering paying off your loan early or refinancing to a lower rate, AskTaskers connects you with experienced mortgage brokers across Dubai.
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