Equity release, also known as a buyout, means using the value of your property to get cash without selling it. By refinancing or adjusting your existing mortgage, you can free up money locked in your home or investment property and use it for personal expenses, business needs, or new investments.
This option is widely used by homeowners, investors, and expatriates across Dubai and the UAE who want access to funds while continuing to own and benefit from their property.
What Is Equity Release / Buyout?
Equity release is a financing option that allows you to borrow based on the current market value of your property, not what you originally paid for it. If your property value has increased or you have already repaid a large portion of your mortgage, you may be able to withdraw part of that value as cash.
A mortgage buyout is just switching your home loan to a new bank for better rates. You can often pull out some additional cash too.
How Equity Release Works in the UAE
1. Property Valuation
The bank arranges a property valuation to find out its current market value.
2. Loan-to-Value (LTV) Assessment
Banks usually allow up to:
- 75–80% LTV for UAE nationals
- 60–75% LTV for expatriates (depending on bank policy and property type)
3. Mortgage Restructuring or Refinancing
Your existing loan is settled, and a new mortgage is issued based on the updated value.
4. Cash Release
The extra amount left after paying off your existing mortgage is given to you as cash.
Common Uses of Released Equity
- Purchasing another property in the UAE
- Business expansion or startup funding
- Debt consolidation
- Education expenses
- Major renovations or home improvements
- Personal or family financial planning
Who Can Apply?
You may be eligible for equity release if you:
- Own a completed residential or commercial property in the UAE
- Have sufficient income to meet bank affordability criteria
- Have a good credit profile
- Are a UAE resident or non-resident (subject to lender conditions)
Both salaried individuals and self-employed applicants can apply.
Benefits of Equity Release in the UAE
- Access large sums without selling your asset
- Competitive interest/profit rates
- Flexible tenures (up to 25 years in many cases)
- Opportunity to improve cash flow
- Can be combined with mortgage buyouts for better rates
Equity Release vs Selling Your Property
Equity Release | Selling Property |
You keep ownership | You give up ownership |
Access cash quickly | One-time lump sum only |
Benefit from future price growth | No future appreciation |
Structured monthly repayments | No repayment obligation |
Why Choose City Mortgage for Equity Release & Buyouts?
- Access to several banks and lenders across the UAE
- Solutions designed to match your financial needs
- Help with both conventional and Islamic financing options
- Complete support from valuation to loan approval and cash release
- Clear and honest guidance at every stage
Conclusion
It is essential to select a professional mortgage consultant because one wrong decision can cost you a lot. For reliable consultancy services, contact City Mortgage today and get premium help.