If you want to buy a property, you don’t have to pay the whole price at once. You can get a mortgage loan that lets you pay in installments over a period of time. This makes it easier and cheaper to own a property. But sometimes, you may need to change some of the conditions of your mortgage loan, like the interest rate, the length of the loan or the amount you pay every month. This is when you need a mortgage amendment.
In Dubai, you can use the mortgage amendment service from the Dubai Land Department (DLD) to change your mortgage loan terms. Let me tell you what you need to do and what documents you need to get a mortgage amendment in Dubai.
What is a Mortgage Amendment?
A mortgage amendment is a change in the terms of your mortgage loan. You may need a mortgage amendment if you want to adjust the interest rate, the loan duration or the monthly payment of your mortgage loan. This can help you save money, pay off your loan faster or manage your cash flow better.
Benefits of a Mortgage Amendment in the UAE
A mortgage amendment in the UAE can have several benefits for both the mortgagor and the mortgagee, such as:
- Reducing the interest rate and the monthly payment amount
- Extending or shortening the loan duration
- Changing the type of the mortgage (fixed or variable)
- Adding or removing a co-borrower or a guarantor
- Avoiding foreclosure or default
- Improving the credit score and the debt-to-income ratio.
What Documents Do You Need?
To get a mortgage amendment in Dubai, you need to submit some documents to the Real Estate Registration Trustee offices. These are the documents you need:
- A bank letter that modifies the mortgage terms
- Three signed mortgage agreements approved by the lending bank and both parties
- The owner’s UAE ID (for identity verification) / a passport copy for foreigners who do not reside in the UAE
- A valid power of attorney if acting on behalf of someone else.
Through the bank (online):
The owner’s UAE ID (only for identification verification, no need to submit a copy) / passport copy for foreigners who are not residents
If you are a sole proprietor, you also need to submit these documents:
- A trade license copy
- UAE ID (only for identification verification, no need to submit a copy) or a valid passport copy for foreigners who are not residents
- A valid power of attorney if acting on behalf of someone else
If you are a Limited Liability Company (LLC), you also need to submit these documents:
- Trade license and parties and lineage page (both original and copy)
- A job title deed certificate
- Memorandum of Association (and any attachments) (both original and copy certified by the Ministry of Foreign Affairs and translated into Arabic)
- A valid power of attorney if acting on behalf of someone else, or a properly notarized board of director’s resolution.
How Do You Apply?
You (customer) can apply for a mortgage amendment in Dubai in two ways:
Using The DLD’s Electronic System
Step I: A customer arranges the mortgage requirements with the bank.
Step II: A bank employee inputs all the necessary documents into the online mortgage system, as the transaction will be reviewed by the bank auditor (all the required documents are uploaded via the digital vault).
Step III: The transaction is forwarded to the department for auditing and the department’s fees are deducted from the bank account.
Step IV: The outputs are sent to the customer via email.
Going to the Service Centre
Step I: A customer goes to a service center – Real Estate Registration Registrars Offices.
Step II: A customer hands over the required documents to an employee to make sure nothing is missing. (All the required documents are uploaded via the digital safe/ treasury).
Step III: The transaction details are entered into the system by an employee and are audited.
Step IV: A customer pays the fees and gets a payment receipt.
Step V: The outputs are delivered to the customer via email.
Mortgage Amendment Fee in Dubai
If you want to change the terms of your mortgage in Dubai, you will have to pay some fees for the process to be completed. These fees are:
- A fee of 0.25% of the total amount of your mortgage.
- A fee of AED 1,000 if you want to change the duration of your mortgage.
- A knowledge fee of AED 10 and an innovation fee of AED 10.
Service partners fees:
- A service partner fee of AED 2,000 plus VAT if you want to increase the amount of your mortgage.
- A service partner fee of AED 300 plus VAT if you want to change the duration of your mortgage.
Need Help with Your Mortgage Amendment in the UAE? Contact Our Drafting Lawyer Today!
If you need to amend your mortgage agreement in the UAE, you may require the assistance of a professional drafting lawyer who can help you prepare and notarize the necessary documents. A drafting lawyer can also advise you on the legal implications and benefits of a mortgage amendment and ensure that your new terms and conditions are valid and enforceable.
At Notary Public Dubai, we have a team of experienced drafting lawyers who can assist you with any type of mortgage amendment, whether it is online or offline. We can draft and notarize your new mortgage agreement in accordance with the DLD’s requirements and regulations. We can also handle any other legal documents you may need, such as affidavits, power of attorney, or side agreements.
Contact us today to get an initial consultation. We are ready to help you with your mortgage amendment and any other legal needs you may have in the UAE.