Question: I bought a property in Dubai last year with a mortgage but my interest rate feels high now compared to what banks are offering. I keep hearing rates are coming down. Should I refinance now, and what should I watch out for? MA, Dubai
Answer: This is a great question because refinancing is becoming a bigger topic in Dubai now that the mortgage market is starting to shift again. When interest rates begin easing, banks become more competitive and homeowners naturally start asking whether they should lock in a better deal.
But refinancing isn’t as simple as chasing a lower rate on a brochure. You need to factor in early settlement penalties, bank processing fees, valuation charges, mortgage release fees, and registration costs. Many homeowners are shocked when they realise switching banks can cost a lot more than they budgeted for.
The most important thing is to calculate the break-even point. If refinancing saves you Dh2,000 ($544.58) a month but costs Dh30,000 in fees, you need to hold the mortgage long enough for that saving to actually pay off. If you plan to sell within a year or two, refinancing may not make sense. But if you’re holding long-term, even a small interest reduction can have a major impact on your total repayment.
Another overlooked issue is eligibility. Refinancing means the bank reassesses your income, liabilities, credit exposure and property valuation. If your valuation comes back lower than expected, or if your financial profile has changed, you may not get the deal you think you will.
My advice is to treat refinancing like an investment decision. Don’t just ask “Can I get a lower rate?” Rather ask, “What is my true cost of borrowing over the next five years?” If the numbers work, refinancing can be a powerful tool. The most successful property owners in Dubai don’t just buy the assets, they manage their financing intelligently as well.
Q: I’m planning to buy property in Dubai partly because I want a golden visa. But I keep hearing different information. While some people say it has to be cash, others say off-plan qualifies or it must be fully paid. What’s actually true? VE, Dubai
A: It's currently one of the most misunderstood topics in the UAE property space. There’s a lot of conflicting information, so allow me to break down exactly what the rules are in 2026 and what really qualifies you for a golden visa through property investment.
The core requirement: Dh2 million minimum property investment
To be eligible for the 10-year UAE golden visa through real estate, you must own property in the UAE with an official value of at least Dh2 million. This threshold applies whether it’s a single property or a combination of units, as long as the total meets or exceeds Dh2 million and all are in your name. The value used for eligibility is the one recognised by the Dubai Land Department (DLD), usually the purchase price recorded on your title deed, Oqood or equivalent valuation.
Ready versus off-plan properties
Both ready (completed) properties and off-plan properties can qualify you for the golden visa, but the conditions vary:
- Ready property: Once your title deed is issued showing Dh2 million+ in value, you can apply for the golden visa.
- Off-plan property: These do qualify too, as long as certain conditions are met. The property must be registered with the DLD (via an Oqood or equivalent), and you must have documentation showing your investment meets the Dh2 million threshold. Some sources also highlight that for off-plan visas, proof of construction progress (often at least 50 per cent complete) and developer documentation help satisfy requirements, though the exact application may vary slightly by case. It's important to note that you don’t automatically get a visa with just a booking fee or an early down payment. The eligibility is tied to recognised ownership value, not simply paying part of the price.
Mortgaged properties are acceptable
Unlike older rules, you can qualify even if the property is mortgaged. The key is that the property’s total market value must be Dh2 million or more, and the title documentation or valuation reflects that. You’ll generally need a no-objection certificate (NOC) from your bank confirming they do not object to the visa application based on the property. It’s no longer required to have paid an arbitrarily large down payment; you simply need the full property value to meet the Dh2 million threshold.
What counts towards the Dh2 million?
Only the real estate value recognised by DLD or a certified valuation, recorded on official documentation, counts. Informal agreements, marketing brochures, verbal promises, or payment receipts don’t qualify. The threshold is based on the official value, which may sometimes require a valuation certificate if the market price has appreciated since purchase.
Joint ownership and multiple properties
If you own multiple properties, their combined value can count towards the Dh2 million threshold, but the key is that your share alone must meet the requirement. In joint ownership structures, your individual share must still be valued at Dh2 million if you’re applying on your own. Spouses can combine value (eg, Dh4 million total for both), but each person’s share must satisfy the conditions for their respective applications (if applying for one each).
What doesn’t count and common misconceptions
There are a few things that do not automatically qualify you:
- Simply paying a booking fee or a small portion of the off-plan price does not grant eligibility; the actual recognised investment value does.
- Owning property by crypto or tokenised assets does not currently count towards golden visa eligibility, even if you legally purchased the real estate with crypto. The visa looks at formal, documented property ownership value recognised by UAE authorities.
Don’t forget associated costs
It’s also worth noting that the Dh2 million requirement refers to the property’s value, not the total out-of-pocket cost. Dubai Land Department fees, agent commissions, escrow costs and other transaction charges are separate costs you need to budget for, and they don’t count towards the Dh2 million threshold themselves.
The golden visa route through property investment is powerful, but it’s not a shortcut. It does reward serious long-term investors, and it’s more flexible than it used to be, allowing financed and off-plan purchases, but the eligibility depends on documented ownership value, not payment receipts or informal assumptions. If you’re buying property primarily for the visa, make sure you confirm eligibility before signing, work with reputable advisers, and ensure your documentation is clean and complete.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@allegiance.ae
