Test monthly overpayments and a single lump sum against your UAE mortgage. The Central Bank caps early settlement fees at 1% of the outstanding balance (max AED 10,000).
AED 1,800,000
4.25%
25 yrs
AED 2,000
AED 50,000
Month 24
Interest Saved
AED 375,652
Paid off in 17y 9m instead of 25y.
Original EMIAED 9,751
Original Total InterestAED 1,125,386
New Total InterestAED 749,734
Time Saved7y 3m
UAE early settlement rules
Early settlement fee: 1% of outstanding balance, capped at AED 10,000 by the Central Bank.
Partial overpayments are usually allowed annually — check your loan agreement for limits.
Switching banks during a fixed-rate period may incur additional break costs.
Overpaying early in the term saves dramatically more interest than overpaying late.