When an initial fixed-rate period ends, many borrowers find their mortgage rate adjusting upward to high variable margins. Refinancing or transferring the balance to another lender can yield substantial interest savings.
The Economics of Refinancing
Under Central Bank regulations, your existing lender cannot penalize you more than 1% of the outstanding balance or AED 10,000, whichever is lower. Because exit penalties are strictly capped, switching to a new lender offering a competitive rate often breaks even within 6 to 12 months.