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Nour Naccache
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If you already own property in the UAE, the cash for your next purchase may be sitting in the home you have. A loan against property lets you borrow against that value, without selling, and use the money towards your next down payment.
Dubai values have climbed sharply since 2020. For many owners, the gap between what their home is worth and what they still owe is now larger than the deposit they need.
Quick answer
A loan against property (also called equity release) is a mortgage secured on a home you already own. Banks lend up to a set share of its current value, minus any mortgage you still owe. The difference is paid to you as cash. Expat residents can borrow up to 80% of a first home's value (up to AED 5 million), subject to the bank's own limits and your debt burden ratio (DBR).
What is a loan against property in the UAE?
A loan against property is a mortgage on a home you already own, where you take the proceeds as cash. In the UAE it follows the same Central Bank mortgage rules as a purchase mortgage. It is not the UK-style "lifetime mortgage" for retirees.
The key term is equity: your property's appraised value minus everything still owed on it. Equity grows as prices rise and as you pay down your loan.
There are three common ways to release it:
Route | How it works | Best for |
Loan on a fully owned home | Place a new mortgage on a property with no loan and take the full amount as cash | Owners with no existing mortgage |
Cash-out refinance | Replace your current mortgage with a larger one, with your bank or a new one offering a better rate; the surplus is paid to you | Owners whose home has risen in value, or who want a better rate |
Top-up (further advance) | Your current bank increases your existing loan | Owners happy with their bank, wanting lower fees |
The property must be completed, with a title deed. Off-plan units can't be mortgaged for equity release until handover.
How much cash can you raise?
Your cash available is the maximum loan on your home minus what you still owe, minus release costs. The cap applies to the total new loan, not just the cash you draw.
Cash available = (Property value × LTV) - Outstanding mortgage - Costs
Central Bank LTV caps (maximum the bank can lend)
Borrower | First property, up to AED 5M | First property, above AED 5M | Second or investment property |
UAE National | 85% | 75% | 65% |
Expat resident | 80% | 70% | 60% |
Non-resident (bank policy) | Up to 60% | Up to 50% | Up to 50% |
In practice, many banks cap equity release at 70–75% of valuation for residents. Use 75% for a realistic first estimate.
Worked example: an expat resident buying an investment flat
Sara owns her Dubai apartment. It is now valued at AED 2.2 million, and she owes AED 800,000.
Step 1: Raise the cash | AED |
Bank valuation | 2,200,000 |
New loan at 75% LTV | 1,650,000 |
Less: outstanding mortgage | (800,000) |
Gross cash released | 850,000 |
Less: release costs (approx.) | (28,000) |
Net cash to Sara | 822,000 |
Step 2: Buy a AED 1.5M investment flat | AED |
Down payment (40%, as the second-property LTV is 60%) | 600,000 |
DLD transfer fee (4%) | 60,000 |
Agency fee (2% + VAT) | 31,500 |
Mortgage registration and admin (approx.) | 7,500 |
Total cash needed | 699,000 |
Sara covers the full purchase and keeps around AED 120,000 as a buffer. The catch: she now carries two mortgages, and both count towards her DBR.
Figures are illustrative. Your bank's valuation, LTV and fees will set the real numbers.
Who is eligible?
Banks assess a loan against property like a new mortgage: your income, your credit and the property all need to qualify.
What banks check | Typical requirement |
Debt burden ratio (DBR) | All monthly debt repayments, including the new loan, under 50% of income |
Income | Often AED 15,000–25,000 a month minimum, varies by bank |
Credit score | AECB score of 580+; 700+ for the best rates |
Employment | 6+ months with current employer; 2+ years trading if self-employed |
Property | Completed freehold home with a DLD title deed |
Age | Loan must end by about 65 (some banks allow 70) |
DBR is often the real limit. You may have plenty of equity, but if the new repayment pushes your DBR over 50%, the bank will lend less.
Documents to prepare
Passport, visa and Emirates ID
Salary certificate and 6 months' bank statements (or trade licence and audited financials if self-employed)
Title deed
Liability letter from your current bank, if you have a mortgage
What does it cost?
Expect upfront costs of roughly 2.5–3.5% of the cash you release on a full refinance. A top-up with your current bank usually costs less.
Cost | Typical amount |
Property valuation | AED 2,500-3,500 |
Bank arrangement fee | Up to 1% of the loan + VAT |
DLD mortgage registration | 0.25% of the loan + admin fees |
Early settlement fee (if switching banks) | 1% of the balance, capped at AED 10,000 |
Life and property insurance | Ongoing, usually required |
Rates. Pricing follows standard mortgage rates: a fixed rate for 1–5 years, then a margin over EIBOR. In mid-2026, headline fixed rates for salaried residents started at around 3.75–3.99%.
Tenure. Up to 25 years, but the loan must end before your bank's age limit. A 45-year-old will usually get 20 years at most.
Loan against property vs other ways to raise cash
If you already own a home with equity, a loan against property is usually the cheapest way to borrow a large sum. If you don't, other routes fit better.
Option | Typical cost | How much do you get | Watch out for |
Loan against property | Mortgage rates | Large: up to the LTV cap | Your home is the security; adds to DBR |
Savings | None | What you have | Leaves you without an emergency fund |
Selling your current property | Transfer and agency fees | All your equity | You lose the asset and its future growth |
Personal loan | Much higher than mortgage rates | Small | Banks generally expect the down payment from your own funds, and it raises your DBR |
Off-plan payment plan | Spread over construction | Lower upfront cash | You pay in stages; the full balance is due at or after handover |
Fractional ownership (PRYPCO Blocks) | From AED 500 | Any amount | You own a share, not a whole home |
Five things to check before you release equity
Releasing equity works best when the new property earns more than the loan costs, and your income can absorb a rate rise.
Stress-test the rate. After the fixed period, your rate moves with EIBOR. On a AED 1.5 million loan, a 1% rise adds about AED 15,000 a year in interest.
Run the rental numbers. The new property's rent should cover its own mortgage and service charges, with room to spare.
Leave a value buffer. Borrowing to the maximum LTV leaves little room if prices fall.
Keep your DBR comfortable. 50% is the legal ceiling, not a target. Many advisers suggest staying nearer 35–40%.
Check your Golden Visa. Since February 2026, a mortgaged property qualifies for the Golden Visa on its total DLD value (AED 2 million or more), not your equity, with a bank NOC. If your visa is linked to this home and you move banks, you'll need an NOC from the new lender.
How to release equity with PRYPCO Mortgage
PRYPCO Mortgage works with all major UAE banks, so you compare equity release offers in one place instead of approaching banks one by one. Most cases take three to six weeks from application to cash.
Check your numbers. Share your property value, outstanding loan and income. We show how much you could release and how it affects your DBR.
Compare banks. We match you with lenders that suit your profile and tell you whether a top-up or full refinance costs less.
Submit documents once. Upload your documents in one place; we handle the bank submissions.
Valuation and approval. The bank values your property and issues an offer letter with your amount and rate.
Registration. The new mortgage is registered with the Dubai Land Department.
Receive your cash. Funds land in your account, ready for your next purchase.
Planning to buy straight away? Get pre-approved for the second property at the same time, so you know your full budget before you start viewing.
Frequently asked questions
Can I use a loan against property to buy another property in the UAE? Yes. Funding a second property is one of the most common uses. Your new purchase will need its own mortgage, capped at 60% LTV for expat residents, and both loans count towards your DBR.
How much can I borrow against my property in Dubai? Up to 80% of your home's value if you're an expat resident with a first property worth up to AED 5 million, minus what you still owe. Many banks cap equity release nearer 70–75%.
Can I get a loan against a property I own outright? Yes. You can place a new mortgage on a fully owned home and take the whole amount as cash, up to the LTV limit.
Can non-residents release equity from UAE property? Yes, with fewer banks and lower limits, usually 50–60% of value. Rates also tend to be slightly higher.
Can I release equity from an off-plan property? Not until handover. The property must be completed and have a title deed.
How long does equity release take? Usually three to six weeks. A top-up with your existing bank is often faster.
Is a loan against property cheaper than a personal loan? Usually, yes. It is priced like a mortgage, so rates are far lower than unsecured personal loans. The trade-off is that your home secures the loan.
Your next property may already be paid for
Find out how much equity you could release, and what it means for your next purchase. PRYPCO Mortgage compares offers across UAE banks and handles the process end to end.
Check how much you can release
This article is for general information only and is not financial advice. LTV caps, rates and fees vary by bank and change over time.
