Buying a property that still has a mortgage.
A mortgage buyout is when you buy a property that the seller is still paying a mortgage on. Your bank pays off the seller's outstanding loan, the seller's bank releases its mortgage, and the property transfers to you with your new mortgage registered. It needs careful coordination between two banks, the seller and the trustee office.
Buyouts are common on the Dubai secondary market. Done well, they complete smoothly. Done badly, they cause delays at the transfer. We manage the timing and paperwork between everyone involved.
Is this right for you?
- Buyers purchasing a resale property with an existing mortgage
- Sellers who want to understand how their buyer's bank will settle their loan
- Agents arranging resale transactions
How a buyout usually works
- Pre-approvalYou get mortgage pre-approval so you know your budget and the bank is ready to act.
- Liability letterThe seller requests a liability letter from their bank showing the exact amount needed to clear the loan.
- Valuation and final offerYour bank values the property and issues the final offer.
- SettlementYour bank (and, where needed, your own funds) pays off the seller's loan, and the seller's bank prepares the release.
- TransferAt the trustee office, the old mortgage is released, the property transfers to you, and your mortgage is registered.
Buyout or balance transfer?
A buyout is a purchase from a seller who still has a mortgage. A balance transfer is when you, as the owner, move your own mortgage to a new bank. They follow different steps.
- Two banks involved. The buyer's bank and the seller's bank must coordinate the settlement and release.
- Timing matters. Liability letters have short validity, so dates need to line up.
- Your down payment. Your own contribution and the seller's equity are settled alongside the loan payoff.
- Developer NOC. The developer usually needs to issue a no-objection certificate before transfer.
What you'll usually need
Salaried applicants
- Passport, residence visa and Emirates ID
- Salary certificate from your employer
- Recent payslips and bank statements showing salary credits (usually 6 months)
- Details of existing loans and credit cards
Self-employed and business owners
- Passport, residence visa and Emirates ID
- Trade licence and company documents (such as the memorandum of association)
- Personal and company bank statements (often 6 to 12 months)
- Audited financial statements or proof of business income, where the lender asks for them
Property documents
- Memorandum of understanding (Form F) or sale agreement
- Title deed or Oqood (for off-plan) of the property
- Valuation report (arranged by the lender)
Lenders may ask for more depending on your profile. We'll give you an exact checklist for your case.
Numbers to know
- Maximum LTV, expatriates, first home, value below AED 5 million
- 80%
- Maximum LTV, UAE nationals, first home, value AED 5 million or less
- 85%
- Maximum debt burden ratio (share of gross income)
- 50%
- Maximum mortgage term
- 25 years
Regulatory limits: Central Bank of the UAE, Regulations Regarding Mortgage Loans, checked 7 November 2026. Lenders can apply stricter limits.
Your questions, answered.
Is it safe to buy a property that has a mortgage?
Who pays off the seller's mortgage?
How long does a buyout take?
Is a buyout the same as a balance transfer?
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