The availability of mortgages has been good to Dubai’s real estate market because it has enabled many people to own assets. Still, mortgages are long-term financial obligations and various unpredictable situations may compel people to cancel the contracts.

Exploring Mortgage Cancellation

Mortgage cancellation or mortgage termination entails the legal discharge of a mortgage between the borrower and the mortgage company. This process is usually undertaken whether the borrower has paid every cent of the loan amount or whether the borrower has had enough of the mortgage for certain reasons such as changing residence or even selling the house.

Some of the causes for mortgage early termination Include:

• Full Loan Repayment: The borrower does not owe any money for the mortgage anymore.
• Property Sale: The building is being sold, and the mortgage on it must be paid off.
• Relocation: There is no need for having the property as the borrower intends to move out of Dubai.
• Financial Circumstances: Giants may cancel because of financial pressures that cannot be anticipated, moving away from an agency quickly.

The Process For Mortgage Cancellation In Dubai

As Shariah compliant law prevails in Dubai, the mortgage cancellation procedures in Dubai are done in accordance with Dubai Land Department (DLD) which has control over the emirate’s real estate. In fact, irrespective of the status – an expatriate or a UAE national, the entire process remains much the same, and consists of several vital stages.

Step 1: Gather The Required Documents

The prerequisites that need to be formalized for the mortgage cancellation process are as follows:

Required Documents

• Original Mortgage Agreement: The complete copy of the Mortgages and Legal Charge signed between you and your lending company.
• No Objection Certificate: Official document, which is provided by a banker or a lender, that states that the mortgage has been paid in full and there are no more payments to be made.
• Title Deed: It is also very important to provide the title deed of the compound, the original one.
• Emirates ID and Passport: Photocopies of your Emirates ID and passport
• Payment Receipts: Documentation of all the payments made for the mortgage.

Step 2: Cancel The Mortgage Via The Bank

If a customer has repaid the mortgage in full, then the bank or the financial institution will be required to provide the NOC. This document proves that the mortgage has been paid in full and there are no encumbrances on the property.

• Process to Obtain the NOC
• Go to the bank or other financial institution your received the mortgage from.
• Provide the documents that prove the last pay made and ask for a NOC.
• The documents will have to be affirmatively authenticated by the bank which would issue the NOC within 3 to 7 working days.

Step 3: Submit Documents At The Service Centre

The next step to be followed is getting the NOC from the bank, and thereafter the applicant proceeds to any of the DLD service centres or typing centres where mortgage cancellations are conducted.

• Standard Operating Procedures Within the Service Centre
• Provide NOC, the original title deed of the property and valid Emirates ID wherever required.
• Complete the mortgage cancellation application form.
• There are fees that are normally charged in the cancellation process to pay the amount required.
• From the next step, wait until the service centre addresses your request.

Step 4: Closing The Process At Dubai Land Department

The last process involves cancelling the service centre then getting a confirmation from the DLD. The department makes certain that there is discharge of the mortgage on the property in question.

DLD Fees for Mortgage Cancellation

• Mortgage Cancellation Fee: They range from AED 1,000 to AED 1,500 on the type of the property – they seem to be the prices for parking spots.
• Administrative Fees: However, these prices may contain some extra service charges which have not been included here.

Mortgage Cancellation: Aspects To Consider

Before proceeding with mortgage cancellation, it’s essential to consider the following:

• Bank Policies

There are trends that vary within the mortgage cancellation policies provided by different banks. Therefore it is advisable that you liaise with your bank about your individual requirement and the span of time it takes to process the matter.

• Outstanding Fees

This entails making some payments that may include mortgage, service charges or other penalties if any should be paid before applying for cancellation.

• Timeline

The whole process, from the time the applicant secures the NOC up to the issuance of the new title deed may take 1 to 3 weeks. Stake your preparations hence for instance in case you plan on selling the property then plan well so that you do not incur unnecessary time.

Mortgage Cancellation Through Various Channels

The government of Dubai established multiple pathways for mortgage cancellations to enhance the convenience for the property owners.

• Via Bank

Personally, go to your lender to get the NOC and begin the cancellation process. This option works best where one wishes to use his or her bank all through the process.

• Via DLD Service Centres

DLD service centres offer a one stop solution for mortgage cancellation. These centres are fully prepared to deal with each aspect of the application starting from the submission of the documents, fee payment inclusive.

• Online Channels

Many of the banks and other service centres provide online applications for initiating the procedure of mortgage cancellation. Visit your bank or the DLD to learn more on the type of services offered online.

Why Mortgage Cancellation Matters?

Termination of a mortgage is necessary for property owners seeking to sell, transfer title or remove any monetary claims on their property. It serves to make certain of the legal use of the property and to safeguard the owner’s position.

Advantages Or Pros Of Mortgage Cancellation

• Clear Property Title: A cancelled mortgage makes certain that the title deed registers the concerned property as free from encumbrances.
• Facilitates Sale: The transfer of properties with no mortgages on them is easier to complete.
• Legal Compliance: With mortgage cancellation legal requirements in DLD put into consideration, the owner has a legal shield.

Conclusion

The application of mortgage cancellation law in Dubai is simplistically uncomplicated, but one would need to pay much attention to some factors. Cancelling your reserved service is not a complicated process; all that is needed is to provide all the necessary documents, get a NOC, as well as work hand in hand with the DLD service centres.