Equity Release

Equity is the current market value of an asset owned minus the liabilities on it

The financial institutions in the UAE provide this leverage to the property owners to obtain loan against their equity which in practice is called Equity Release

The percentage of equity release varies based on your property and nature of you property. Generally, UAE nationals can borrow up to 85% of the property value, and expat residents can borrow between 75% and 80% of the property value.

Some institutions also allow non-residents of the UAE to obtain a loan against their property owned in this region. However, this borrowing is maximum implied upto 50% of the property value.

Bearing in mind, that the value of the property in these cases are determined on adhoc basis by the third-party valuation companies appointed by the bank, as the current market value of property varies with time.

For instance: if a valuation of an owned property has come out as AED 1M who is an expat resident, he would be able to attain AED 800,000 from the bank against which he can source another property and build up portfolio.

For more information about Equity Release and the technical details associated with it, please feel free to contact Homes 4 Life.