A mortgage loan provides a way for individuals to finance the purchase of a property without needing to pay the full amount upfront. The cost is spread out over time and is paid through regular mortgage payments, making homeownership more accessible and affordable. However, sometimes there are changes to the terms of an existing mortgage agreement, such as adjustments to interest rates, loan duration or the payment amount. This is where a mortgage amendment may become essential.
Homeowners and property investors in Dubai can access the mortgage amendment service from the Dubai Land Department (DLD). Let’s learn about all the details of the process and required documents for mortgage amendment in Dubai.
How to Request a Mortgage Amendment in Dubai
We’ll start with the documents required for the mortgage amendment process in Dubai.
Mortgage Amendment Document Requirement
After getting a mortgage in Dubai, individuals who want to request for mortgage amendment in Dubai must submit the following documents via Real Estate Registration Trustee offices:
- The previous mortgagee’s contract.
- Letter from the mortgagee.
- Three mortgagee-bank mortgage contracts certified by DLD and signed by both parties.
- Emirates ID card of the owner or passport copy for a non-resident owner.
- Power of Attorney in case someone else is appointed to handle the process.
In the case of sole proprietorship, the landlord who is the mortgagor is required to submit the following documents
- Copy of the Commercial Licence.
- Emirates ID card of the owner or passport copy for a non-resident owner.
- Power of Attorney in case someone else is appointed to handle the process.
If a Limited Liability Company (LLC) is involved, the following documents must be submitted for a mortgage amendment request in Dubai.
- Trade Licence’s copy
- A document containing details of partners and equities (original and copy)
- Certificate of incumbency.
- Establishment contract with supplementary documents if applicable (original plus copy certified from the Ministry of Foreign Affairs and translated into Arabic).
- An official document for the legal agency representing the company or a valid/certified document representing the board of directors’ decision.
For more details on property mortgage in Dubai and Abu Dhabi, read here.
DLD Mortgage Amendment Process in Dubai
Whether looking for an amendment or mortgage transfer in Dubai, the process can be completed either through the DLD’s eMortgage system or by visiting the offices of the Real Estate Registration Trustee. Here is a step-by-step overview of the procedure for mortgage amendment in Dubai:
Via DLD’s Electronic System
- The first step in this process of how to apply for a mortgage amendment in Dubai requires the mortgagor to prepare all the required documents with the bank.
- Next, the mortgagee’s bank employee inputs the required documents into the DLD’s eMortgage system.
- The bank auditor audits the transaction and uploads all the required documents via the DLD Document Vault.
- The transaction is further sent to DLD for verification purposes.
- Once the transaction is verified the Mortgage amendment fee is deducted from the mortgagor’s bank account.
- The DLD responds to the mortgage amendment request in Dubai through email.
- A similar process is also followed for mortgage registration in the UAE.
Via the Service Centre
- The individual visits one of the Real Estate Registration Trustee offices to submit the necessary documents.
- The DLD employee or any authorised personnel enters the documents via the DLD Document Vault for verification.
- Once the documents are verified, the individual pays the Mortgage amendment fee and gets the payment receipt.
- The customer pays the fees and receives a receipt for payment.
- The DLD responds to the mortgage amendment request via email.
If you want to learn more about the document requirements and process of registration for the sale of mortgage property, read here.
Mortgage Amendment Fee in Dubai
The following mortgage amendment fees need to be paid for process completion:
- 0.25% of the total mortgage amount
- The amendment fee for the mortgage period is AED 1,000
- Knowledge fee is AED 10
- Innovation fee is AED 10
Service Partners Fees:
- AED 2,000 in case of an increase in the mortgage amount + VAT on the service partner’s fee
- AED 300 in case of an amendment to the mortgage period + VAT on the service partner’s fee
Payment Method for Mortgage Amendment Fee
To apply for mortgage amendment in Dubai, the fee can be paid using the following methods
- ePay
- Dubai Pay
- Noqodi
- Manager Cheque to Dubai Land Department
There you have it – the complete guide on how to request a mortgage amendment in Dubai. When buying a property in Dubai, be careful about the mortgage agreement terms and make an investment decision accordingly. Ensure the contract is in the best interest of both the mortgagor and mortgagee.
Meanwhile, for more mortgage-related information and processes, refer to the guides below:
For more useful guides on property laws and regulations in Dubai, stay connected with dubizzle’s real estate blog.
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