Calculations are estimates only and do not constitute financial advice. Actual rates, fees, and eligibility may vary by lender. Always consult a licensed mortgage professional.
Calculations are estimates only and do not constitute financial advice. Actual rates, fees, and eligibility may vary by lender. Always consult a licensed mortgage professional.
Calculate your early settlement penalty and net savings.
How many months have you been paying?
Outstanding Balance
AED 1,432,014
Settlement Penalty
AED 10,000
CBUAE Cap (1% or AED 10,000, whichever is lower)
Total to Settle
AED 1,442,014
Net Saving
AED 859,132
You save by settling early
In the UAE, the Central Bank (CBUAE) regulates early settlement penalties to protect borrowers. Under CBUAE guidelines, the maximum early settlement fee a bank can charge is 1% of the outstanding principal or AED 10,000, whichever is lower. This cap applies to all retail mortgage products from UAE-licensed banks.
Early settlement makes the most financial sense in the early years of your mortgage when a larger portion of each payment goes toward interest rather than principal. By settling early, you avoid paying interest on the remaining term, which can result in significant savings — often tens or hundreds of thousands of dirhams.
Before requesting early settlement, contact your bank to get an exact settlement letter (also called a liability letter). This document will show your precise outstanding balance, the early settlement fee, and the total amount required. Settlement letters are typically valid for 7-14 days.