Mortgage is a central financial pillar of the real estate industry, helping owners easily purchase properties. The mortgage is a long-term commitment, however, sometimes one has to opt out of it due to unforeseen circumstances. There is a legal process to terminate mortgages in Abu Dhabi that saves owners from litigation stress in the future.
Let’s take a look at the mortgage termination in Abu Dhabi and elaborate on its steps and required documents.
Laws for Mortgage Termination in Abu Dhabi
Like mortgage termination in Dubai, owners can also get their mortgage terminated in Abu Dhabi. The Law No. (3) of 2015 Article (48) governs the mortgage termination in Abu Dhabi. According to the law, the mortgage can be terminated on the following basis.
- Full Repayment: The mortgage is terminated when the borrower pays off the entire loan (principal + interest amount).
- Legal Issues: The termination can be cancelled due to an agreement between the lender and borrower, court orders and expiration of the mortgage term.
Besides Law No. (3) of 2015, here are some other mortgage laws in Abu Dhabi that you can read through.
Mortgage Termination in Abu Dhabi Procedure
Once the borrower has fully paid the loan amount, a mortgage termination or redemption request can be submitted. Here are all the steps to apply for mortgage redemption in Abu Dhabi.
- Login to Dari Portal
- Select ‘Services’, ‘Financing & Mortgage’ and then ‘Request Property Mortgage Redemption’
- Select the mortgage contract and click ‘Proceed’
- Review the contract details and upload the required documents
- Pay the fee and complete the application process
- The application will be reviewed and approved by the bank and DMT
- Applicant will be informed and required to pay the fee, once the application is approved
- Review the payment details and click ‘Pay Now’
- A message confirming the payment will appear, click on ‘Download Payment Receipt’ to secure a copy.
The application can be sent to other owners (if any), a company or a bank for the approval of the application.
Documents Required for Mortgage Termination in Abu Dhabi
A mortgage release letter from the bank is required to apply for the mortgage release in Abu Dhabi.
Service Fees for Mortgage Termination in Abu Dhabi
The service fee for mortgage termination in Abu Dhabi is AED 900/property+AED 55 (EASF)+5% VAT.
FAQs
What is mortgage termination in Abu Dhabi?
Mortgage termination is a process that allows owners to settle their debt and cancel the lender’s claim on the property.
Where can I apply for mortgage termination in Abu Dhabi?
The mortgage termination in Abu Dhabi can be terminated through the Dari app or portal.
Is mortgage termination and redemption the same?
No, mortgage termination is the legal removal of the lender’s claim after full repayment, while redemption refers to the act of repaying the mortgage debt.
This was the complete process for mortgage termination in Abu Dhabi. The provision of mortgages and multiple laws that govern the process, allow owners to purchase properties conveniently. Aside from government institutes, a number of other private financial institutions in the Emirates also offer property mortgages. If you are also planning to opt for properties for sale in Abu Dhabi on a limited budget, avail of the mortgages offered.
Prior to securing finances on the property, here is all that you should know about mortgages in Abu Dhabi.
Stay tuned to UAE’s top property blog for more information on property mortgages.
