A mortgage payment deferral in the UAE is a request you make to your bank, and the bank decides. There is no legal right to pause a home loan, no central bank rule that forces a bank to say yes, and no “free” version, because the interest on your loan keeps running while the instalment is paused. This guide, updated on 26 October 2026, explains who can realistically get a deferral, what one costs in dirhams on a typical loan, and what the 2026 central bank relief package did and did not cover.
Published: 27 October 2026
If you are already behind on payments, read our guide to what happens when you miss a mortgage payment in the UAE first. This article is about the earlier, calmer moment: you can see a cash squeeze coming and want to ask for help before a payment is missed.
Quick answer: can you pause your mortgage payments in the UAE?
Short answer: sometimes, if your bank agrees, and it will cost you money. The central bank rulebook says banks are permitted to defer up to two instalments in a year at their discretion. “Permitted” and “at their discretion” are the key words: the rule lets a bank agree, it does not oblige one to. Each bank then adds its own conditions, fees and limits.
Three things decide your odds:
- Whether your loan is current. Banks are far more willing to help a customer who has never missed a payment.
- Whether you can show a temporary problem, such as a delayed salary, a medical bill, a short gap between jobs or a documented one-off expense.
- Whether your bank’s own policy covers home loans. Some banks offer deferral on personal and auto loans but treat mortgages differently.
What the 2026 central bank relief package actually covered
In March 2026, after the regional conflict that began on 28 February, the Central Bank of the UAE (CBUAE) approved a Financial Institutions Resilience Package. On 5 October 2026 the CBUAE disclosed the results: 155,970 banking customers received relief covering loans worth AED 15.9 billion, with the measures running to the end of August 2026. Of those, 148,681 were individual customers, with repayment deferrals worth AED 2.3 billion. The rest were about 849 private companies (AED 10.7 billion) and 6,441 small businesses (AED 2.9 billion). (Sources: Khaleej Times, Arabian Business and Gulf News, all reporting the 5 October disclosure.)
That sounds like a mortgage lifeline, but read the detail before assuming it applied to your home loan:
- Gulf News reported the package terms as deferral of repayments for up to six months without the loan being classed as in default, plus suspension of interest and fees on affected facilities, with hospitality, transport and other hit sectors prioritised.
- Khaleej Times reported the retail side differently: instalment deferments of up to three months on select personal and auto finance facilities, without profit or fees, subject to each bank’s internal criteria.
- None of the coverage we found names home loans or mortgages. The reports talk about “loans”, “customers” and “individuals”. We could not verify from any published source that mortgages were included, so do not assume your home loan qualified.
- The National described the central bank’s measure for borrowers as flexibility for banks to postpone loan classification for affected customers, alongside liquidity support for the banks themselves. In other words, much of the package was about letting banks defer without being penalised, not a guarantee that every borrower could.
- The six-month clocks are now running out. Enterprise AM reported on 22 September 2026 that the earliest deferrals were reaching the end of their six months and that banks must now go back and reclassify each loan.
We found no announcement of a new intake window after August. If you were never offered relief and are asking now, you are asking under your bank’s normal policy, not under an open government scheme. Ask your bank directly whether any wartime or resilience relief is still available for your product.
Is a mortgage deferral a right? What the rulebook actually says
No. The CBUAE Rulebook, in its repayment-instalments provision for bank loans to individuals (Notice 4501/2011), states: “Banks are permitted to defer up to two instalments in a year at their discretion.” The same section says no top-ups, deferrals or rescheduling are permitted beyond a borrower’s eligibility on salary multiple, tenor and repayment percentage, and that banks should have a policy limiting how often they reschedule and must not “ever green” loans to hide problem or delinquent loans.
What that means for you in practice:
- Discretion is the bank’s. A refusal is not a rule breach.
- The two-a-year figure is a ceiling, not an entitlement. Many banks allow fewer, or none, on a home loan.
- Banks cannot use deferral to hide a loan that is already failing. If you are already in arrears, they are more likely to move you into a formal restructuring conversation than approve a simple pause.
- Debt-burden limits still apply. A summary of the CBUAE’s responsible-financing rules says a deferral should not push your future deductions beyond the applicable debt-burden requirements. We could not retrieve the primary clause, so treat this as the general principle and ask your bank how it applies it.
Note that this rule sits in older guidance and is written for bank loans to individuals generally. Your mortgage contract and your bank’s current policy are what actually govern your loan, so always ask for the home-loan version in writing.
What banks actually offer on home loans (verified examples)
Bank terms differ, and they change. These are the published terms we could read directly on 26 October 2026. Check the live page or call your bank before relying on any of them.
| Bank / product | What it says for home finance | Cost and conditions |
|---|---|---|
| Emirates Islamic (Home Finance) | Up to two deferrals a year, in non-consecutive months. The first instalment cannot be deferred. | AED 300 fee (inclusive of VAT). Finance must be current with no missed or late payments. Online requests under Auto Payment must be placed 31 days before the due date; the FAQ gives a longer notice period (35 days for home finance) for direct debit. The page does not say how profit is treated during the pause. |
| Emirates NBD (Deferral Relief Programme page) | For home loans, interest continues to apply on the deferred instalment and the tenure may be extended by one month. The first instalment cannot be deferred. | Described as free of charge. Requests processed within 7 working days. The page carries no dates or deadlines and the programme is not tied to a stated event, so confirm it is currently open to you. |
| Ajman Bank (Talahom initiative, frontline workers) | Waives donation commitments for three months if home finance instalments are delayed, plus zero processing fees on new home finance. This is a fee waiver, not a deferral. | Aimed at frontline personnel. Not a general mortgage pause. |
Two honest observations. First, the most useful published terms we found all say the same thing: interest keeps accruing. Second, we could not find a published, current mortgage-specific deferral policy for most major UAE banks, so the only reliable route is to ask your bank’s mortgage or collections team directly, in writing.
What a deferral really costs: AED 1.5 million worked example
Deferral is not free money. The unpaid interest has to be repaid somehow: it is either added to your balance and spread across your remaining payments, or it extends your loan. Here is the arithmetic.
Benchmarks used (so the example resembles the real market): on 8 October 2026, the 3-month EIBOR fixing was 4.39% (CBUAE data as reported by mortgage comparison sites; our own fixed-rate guide uses the same fixing). Indicative 3-year fixed rates in early October 2026 ranged from 3.95% to 4.39% across banks. We use 4.25%, inside that range, for a hypothetical AED 1,500,000 loan over 25 years.
- Monthly payment: about AED 8,126.
- After 24 payments, the outstanding balance is about AED 1,429,650.
- You ask for a 3-month deferral at that point, and the bank lets interest run at 4.25% on the unpaid balance.
| What happens | 3-month deferral | 6-month deferral |
|---|---|---|
| Interest added to your balance during the pause | about AED 15,250 | about AED 30,650 |
| Option A: keep the original end date. New monthly payment | about AED 8,213 (+AED 87 a month) | about AED 8,300 (+AED 174 a month) |
| Option A: extra interest over the rest of the loan | about AED 23,900 | not calculated here |
| Option B: keep the same payment of AED 8,126. Loan ends later by | about 6 months | not calculated here |
| Option B: extra interest over the rest of the loan | about AED 40,900 | not calculated here |
How to read this:
- A 3-month pause costs roughly AED 24,000 to AED 41,000 in extra interest on this loan, depending on whether you raise the payment slightly or extend the term. The pause itself frees up about AED 24,400 of cash flow (three instalments), so you are effectively borrowing that money from yourself at a price.
- Extending the term is cheaper today and dearer overall. Option B keeps your monthly payment unchanged but costs about AED 17,000 more in total than Option A.
- Small monthly increases are the cheaper road if you can afford them. An extra AED 87 a month is easy to miss, yet it saves about AED 17,000 over the remaining term.
- The earlier in the loan you defer, the more it costs, because the balance is larger and the interest runs for longer.
These figures are our own illustrative calculation using standard loan maths with monthly compounding. Your bank may capitalise interest differently, charge a deferral fee (Emirates Islamic’s published fee is AED 300) or reset your payment on a different basis. Ask for the exact new schedule in writing before you agree.
If you hold a variable-rate loan, remember that EIBOR can move while you are deferring. Our variable-rate stress test shows what a 1% rise does to the payment you will return to.
Alternatives to a deferral, ranked
A deferral is the most expensive way to buy a short breathing space per dirham of relief, because you pay interest on interest. Depending on your situation, one of these may suit better. We rank them by how much they usually protect your finances.
- Ask for a term extension (restructure) rather than a pause. The bank lowers your monthly payment permanently by stretching the loan. You pay more interest overall, but you keep making payments, which is a cleaner position with the bank than a gap. Rules on rescheduling and your eligibility limits still apply.
- Ask whether an interest-only or reduced-payment period is possible. Some lenders may consider it for a short, documented hardship. We have not verified a published UAE retail mortgage product that offers this, so treat it as a question to ask, not a promise.
- Make a partial prepayment if you have spare cash elsewhere. If your problem is a lumpy cash-flow month but you hold savings, paying down principal first can lower the payment. See our guide to partial prepayment on a UAE mortgage and the fee trap.
- Refinance. If your current rate is above the market, a new lender or a new fixed period can cut the payment. It has fees and a timeline, so it does not help in a month-end emergency. Read when refinancing makes sense and check the early settlement penalty cap before you switch.
- Sell, or restructure ownership. If the problem is not temporary, selling before arrears build up protects your equity. See selling a mortgaged property in Dubai for the liability letter and NOC steps.
If the hardship is job loss rather than a cash-flow gap, check whether insurance or other cover applies first: job loss and your UAE mortgage (ILOE and bank protection).
Will a deferral hurt your credit report?
This is the question most borrowers worry about, and the honest answer is that it depends on how your bank flags it, and we could not find a published AECB rule that settles it. What is documented is the other side of the coin. A missed payment is reported to the Al Etihad Credit Bureau (AECB) and can stay on your record for years, which is why an agreed arrangement made before the due date is generally safer than a payment that simply fails. Our guide to what happens when you miss a mortgage payment covers the reporting side in detail.
Practical steps that protect you:
- Ask the bank, in writing, how the deferral will be reported to AECB (for example, as a normal agreed arrangement or as a restructured or delinquent account).
- Get written approval before the due date. Do not stop paying and wait for an answer. A formal approval is what separates an agreed deferral from a missed instalment.
- Pull your own AECB report afterwards and check that the status matches what the bank told you. If it is wrong, raise it with the bank and use AECB’s dispute process.
- Expect banks to look at the deferral when you next apply. A new lender may ask about it if you refinance or buy a second property, so keep your approval letter.
How to ask your bank: a script and a document checklist
The way you ask changes the answer. Be specific, early and documented.
Call or email your bank’s mortgage service or collections team at least 5 weeks before the due date. Emirates Islamic’s published notice period is 31 days (35 days for home finance under direct debit), so start there as a safe window. Then say, in plain words:
“I have a home loan, account number [number]. My payments are up to date. I have a temporary problem: [short reason]. I would like to request a deferral of [number] instalments starting [month]. Please confirm in writing: (1) whether you can approve this on a home loan, (2) the fee, (3) whether interest continues to accrue, (4) whether my payment will rise or my loan term will extend, (5) how it will be reported to AECB, and (6) what happens if my situation lasts longer than expected.”
Have these ready:
- Emirates ID and loan account number.
- Last 3 to 6 months of salary credits or bank statements.
- Evidence of the hardship (a delayed-salary letter, medical invoice, termination notice or similar).
- Your plan to resume full payments, including any expected income.
- A list of your other loans and card balances, because banks check your total debt burden.
Keep every reply. Save emails, screenshots of the online request and any reference number. If the request is made online, take a screenshot of the confirmation.
What to do if the bank says no
A refusal is not the end of the road, because you still have time.
- Ask why. The reason (not current, no documented hardship, product not eligible) tells you what to fix.
- Ask for the alternative. “If you cannot defer, can you restructure or extend the term?” is a different request with a different policy.
- Escalate inside the bank. Ask for the mortgage retention or collections manager, not the call-centre agent.
- Do not stop paying while you wait. Missing the payment turns a negotiable hardship into a delinquency. Pay what you can and keep the bank informed.
- Look at another lender. If your credit is clean and the problem is the payment size, a refinance may work. Compare options with what banks require during a job change or probation if your income situation has changed.
- Escalation route. If you believe the bank treated you unfairly, use the bank’s complaints process first. The CBUAE’s consumer protection framework is the next step if it is not resolved.
Common mistakes that make a deferral more expensive
- Asking too late. Notice periods of a month or more mean last-minute requests fail.
- Deferring and forgetting. The payment you return to is higher, or the loan runs longer. Put the new schedule in your calendar.
- Stacking deferrals. Two pauses in a year double the interest build-up. Banks may also decline a second request.
- Using a pause when the problem is permanent. If your income has fallen for good, a longer-term fix (restructure, refinance, sale) is cheaper than months of deferrals.
- Ignoring the rate environment. With 3-month EIBOR at 4.39% on 8 October 2026, a variable loan can move against you. See EIBOR explained and our note on the September 2026 rate hike.
Frequently asked questions
Can I defer my mortgage payment in the UAE?
Maybe. It is the bank’s decision. The CBUAE Rulebook says banks are permitted to defer up to two instalments in a year at their discretion, but no bank is obliged to approve a request, and many apply stricter conditions to home loans.
How many mortgage instalments can I defer in a year?
The central bank guidance allows banks to defer up to two a year. Emirates Islamic’s published home finance terms allow up to two deferrals a year in non-consecutive months. Your own bank’s policy may be lower.
Does interest still accrue during a mortgage deferral?
Usually yes. Emirates NBD’s published deferral page says interest continues to apply on the deferred home loan instalment, and any bank deferral that does not waive interest will add the unpaid interest to what you owe. Ask your bank for the exact treatment in writing.
Did the 2026 central bank relief cover home loans?
We could not confirm it. The CBUAE’s Financial Institutions Resilience Package reached 155,970 customers and AED 15.9 billion of loans by the end of August 2026, but none of the reports we found names mortgages specifically. The retail relief reported by Khaleej Times referred to select personal and auto finance facilities. Ask your bank whether your home loan was eligible.
Is the 2026 relief package still open?
We found no announcement of a new intake after the August cut-off. The earliest six-month deferrals have been expiring since September 2026, according to Enterprise AM. Ask your bank whether any relief is still available for your product.
How much does a 3-month mortgage deferral cost?
On our illustrative AED 1.5 million, 25-year loan at 4.25% with 24 payments made, three deferred months add about AED 15,250 to the balance. Over the rest of the loan that becomes roughly AED 24,000 in extra interest if you keep the end date, or roughly AED 41,000 if you keep the payment and extend the term. Your loan and rate will differ.
Will a deferral affect my AECB credit report?
It depends on how the bank flags it. We could not find a published AECB rule that defines the treatment, so ask your bank in writing how it will be reported, and check your own report afterwards. A missed payment is a separate matter and is far more damaging.
Is a term extension better than a deferral?
Often yes, if your problem will last more than a month or two. An extension lowers your payment permanently and keeps the loan in good standing, although it increases the total interest. A deferral buys short relief at a high price per dirham.
What documents does the bank usually need?
Typically your Emirates ID, loan account details, recent salary credits or bank statements, and proof of the hardship. Banks also look at your total debt burden, so have a list of other loans and cards ready.
What if I already missed a payment?
Contact your bank immediately and do not wait. A deferral is normally only available on a current loan, so you are more likely to be offered a restructuring or arrears arrangement. Read what happens when you miss a mortgage payment for the escalation steps.
How Al Ghaf can help
Al Ghaf Mortgage offers two services: Mortgage Consulting and Banking Consultation. If you are worried about an upcoming payment, we can help you understand your options, prepare the documents and questions for your bank, and compare whether a restructure, a refinance or a sale is the better route. We do not guarantee any bank’s decision, because deferral is always at the bank’s discretion.
For a calm conversation about your situation, use our Contact Us page or message us directly on WhatsApp.
Message Al Ghaf on WhatsApp: +971 50 127 6925
This article is general information, not financial or legal advice. Bank policies and rates change. Confirm all terms with your lender before acting.
If you are still weighing how much a bank will lend and what the Central Bank’s loan-to-value caps mean for non-resident or foreign buyers, this guide on what banks actually approve for foreigners getting a Dubai mortgage in 2026 covers the lending side.