
Dubai's mortgage market is highly competitive, with various banks and lenders offering attractive rates to attract customers. With so many options, it can be overwhelming to choose the right one.
Dubai Mortgage Laws require lenders to offer a minimum loan-to-value ratio of 20% for most property types. This means you'll need to pay at least 20% of the property's value upfront.
The Central Bank of the UAE regulates the mortgage market, setting guidelines for lenders to ensure stability and transparency. This regulation helps protect consumers from unfair practices.
Dubai's mortgage rates are influenced by the Central Bank's Monetary Policy Committee, which sets the base rate for all banks. This rate affects the interest rates offered by lenders.
A different take: Interest Rates on 20 Year Mortgage
UAE Home Loans
The UAE's mortgage market has become more expensive in the past 18 months, with average interest rates rising from 2% in January to 5% in December 2022.
Mortgage loans in Dubai have become noticeably more expensive due to the growth of the interbank EIBOR rate, which serves as a reference for most mortgage interest rates.

The 3 Months EIBOR rate rose from 0.22% in January 2022 to 4.99% in April 2023, leading to a decline in mortgage activity.
In Dubai, 16.7 thousand mortgage deals were concluded in 2022, which is 14.5 percent less than the previous year, according to the Emirate's Land Department (DLD).
Banks in Dubai have started offering fixed-rate offers, but these rates are fixed for no more than five years, and in most cases, it's for one, two, or three years.
The Emirates Interbank Offered Rate (EIBOR) plays a crucial role in determining the home loan rates in Dubai and across the UAE.
The UAE bank rate and Dubai mortgage rates are affected by global economic conditions, central bank policies, and local real estate market trends.
Any bank reserves the right to offer a client a higher interest rate on a loan than the one declared on its official website, after the completion of the underwriting process.
Additional reading: What Were Mortgage Rates in 2022
UAE Mortgage Rates

The UAE mortgage landscape is influenced by several key factors, including the Emirates Interbank Offered Rate (EIBOR), which serves as a benchmark for adjusting interest rates on mortgages.
Mortgage rates in Dubai and across the UAE are affected by global economic conditions, central bank policies, and local real estate market trends. This means that mortgage rates can fluctuate over time.
Here's a comparison of introductory rates for fixed and variable mortgages from some of the top banks in Dubai:
Fixed Rate UAE
Fixed rate mortgages in the UAE can provide stability and predictability for homebuyers. Fixed rate mortgages in the UAE can provide stability and predictability for homebuyers.
A fixed rate mortgage in the UAE is a type of loan with an interest rate that stays the same for a set period, as mentioned in Example 2. This means your repayments are the same every month and you don’t need to worry about fluctuations in interest rates or EIBOR.
For another approach, see: What Is the Current Interest Rate for Commercial Mortgages

Some banks in the UAE offer fixed rate mortgages with competitive rates. For instance, First Abu Dhabi Bank (FAB) offers fixed rate mortgages with rates starting at 3.99% per annum for one year, as seen in Example 3. This can be a great option for those who want to lock in a low rate for a certain period.
Here's a comparison of some fixed rate mortgage offers in the UAE:
Note: These rates are introductory rates and may change over time. It's essential to review the terms and conditions before applying for a mortgage.
As you can see, there are various fixed rate mortgage options available in the UAE, with different banks offering competitive rates. It's crucial to compare these rates and terms to find the best option for your needs.
Variable Rate
Variable rate mortgages in the UAE are quite common and can be a bit tricky to navigate.
The interest rate on a variable rate mortgage in the UAE can change periodically, which means your repayments installments will change throughout the loan term.
A different take: Variable Interest Rate Mortgage

This change is usually in relation to the EIBOR, or Emirates Interbank Offered Rate, which is a daily reference rate published by the UAE Central Bank.
No specific cutoff score is required to avail a mortgage in the UAE, but having a good credit score can help you get better mortgage deals.
To manage your credit score, it's essential to keep your credit report in good shape, and paying off any outstanding borrowed credit can help improve your credit score.
You can check your loan installment using a mortgage calculator, like the one we have for Dubai & UAE Mortgages.
Emirates NBD offers a variable rate mortgage loan with an interest rate of 1.99% plus 1 Month EIBOR, making it a unique option in the market.
The minimum income required to get a loan from Emirates NBD is 15,000 AED ($4,088), and you'll need to have at least 20% of the cost of the purchased housing as your own funds for the down payment.
Additional reading: Does Rocket Mortgage Have Good Rates
Eligibility and Process

To qualify for a mortgage in Dubai, you'll need to meet the eligibility criteria set by banks. Most banks require a minimum monthly salary of AED 12,000 to AED 20,000, depending on the loan amount.
Emirates NBD, for instance, requires a minimum salary of AED 15,000 for salaried employees and AED 25,000 for self-employed individuals. This means that your income will play a significant role in determining your mortgage eligibility.
Here's a breakdown of the minimum salary requirements for some of the top banks in Dubai:
Keep in mind that these requirements may vary depending on the bank and the loan amount you're applying for.
Eligibility Criteria
To be eligible for a mortgage loan in Dubai, you'll need to meet certain requirements. Most banks require a minimum monthly salary ranging from AED 12,000 to AED 20,000, depending on the loan amount.
Salaried employees must have been in continuous service with their current employer for at least 6 months to 2 years. This ensures that you have a stable income to support your loan repayments.

Business owners must show at least 2 years of profitable business operation, with financial documents to back their claims. This demonstrates your ability to manage your finances and repay the loan.
The LTV ratio also plays a crucial role in determining how much of the property value you can borrow. Expats can typically borrow up to 80% of the property value for their first home, while UAE nationals may get up to 85% LTV.
Here's a summary of the minimum salary requirements for different banks:
- Emirates NBD: AED 15,000 for salaried employees, AED 25,000 for self-employed individuals
Steps to Securing the Best
Securing the best mortgage rates in Dubai requires a strategic approach. To start, keep your credit history spotless, as this will help you secure a favorable interest rate.
To evaluate the best rates available, engage in thorough research across banks. This will give you a clear understanding of the current mortgage rates in Dubai. It's essential to consider multiple banks to find the most advantageous option.
Worth a look: Best Credit Union Mortgage Rates

Enlisting a mortgage broker's expertise can be particularly valuable, especially when navigating the diverse bank offerings. A mortgage broker can help sharpen your application and potentially gain access to better rates.
Here are some key steps to securing the best mortgage rates:
- Keep your credit history spotless
- Engage in thorough research across banks
- Enlist a mortgage broker's expertise
By following these steps, you'll be well on your way to securing the best mortgage rates in Dubai.
Bank Services and Comparison
First Abu Dhabi Bank (FAB) offers mortgage rates starting at 3.99% per annum fixed for one year, 4.24% per annum fixed for three years, and 4.49% per annum fixed for five years for customers who receive their salaries on their account in this bank.
FAB also offers a programme with a rate linked to 3 Months EIBOR, with a charge of 0.55% plus 3 Months EIBOR for the first year and 1.5% plus 3 Months EIBOR for the second year.
Emirates NBD offers a fixed-rate mortgage from 2.99% and a variable rate mortgage from 3.24%, while HSBC offers a fixed-rate mortgage from 2.49% and a variable rate mortgage from 2.99%.
Recommended read: 3 Year Arm Mortgage Rates
Comparison of Bank Services

When comparing mortgage rates among Dubai banks, a table can help illustrate the starting rates offered by each bank. Here's a table outlining a selection of Dubai banks along with their introductory rates for fixed and variable mortgages:
In addition to comparing interest rates, it's also essential to consider other costs associated with a mortgage, such as processing fees and early repayment fees.
A mortgage broker can be invaluable in navigating the complex UAE mortgage landscape, as they have a thorough understanding of the market and can often secure exclusive home loan rates in Dubai not directly available to consumers.
Bank Services and Comparison
First Abu Dhabi Bank (FAB) offers fixed mortgage rates starting at 3.99% per annum for customers who receive their salaries on their account in the bank.
FAB's mortgage rates are competitive, especially for customers who bank with them. They offer a programme with a rate linked to 3 Months EIBOR for home loans, charging 0.55% plus 3 Months EIBOR for the first year and 1.5% plus 3 Months EIBOR for the second year.
Broaden your view: Will Mortgage Rates Ever Go Back down to 3

The maximum loan amount at FAB is 20,000,000 AED, which is a significant amount. To qualify for a loan, you'll need an income of at least 15,000 AED per month.
Rakbank offers a Home in One mortgage product with a variable rate starting at 1.04% per annum plus 3 Months EIBOR. This rate can go up to 1.74% per annum plus 3 Months EIBOR.
Rakbank also offers fixed rates starting at 4.84% per annum, which is higher than FAB's fixed rates. The fixed rates at Rakbank are valid for the first three or five years, after which the rate changes to a variable rate.
The minimum income to qualify for a loan at Rakbank is also 15,000 AED per month, just like FAB. The maximum amount the bank would be willing to lend is 20,000,000 AED, which is the same as FAB's maximum loan amount.
Rakbank's Home in One programme has a unique feature: if you place a deposit in the same bank, the mortgage interest is accrued on the amount of the loan excluding the deposit. This can be a great benefit for borrowers.
For your interest: Mortgage Rates 19 Month Low
Market Insights

Regularly monitoring the UAE interest rate and today bank rate in Dubai is crucial to stay on top of market trends and identify the best time to apply for a mortgage.
Websites of major banks and financial news outlets are excellent resources for up-to-date information on mortgage rates.
Predicting mortgage rate movements can be challenging, but some trends have been observed. Dubai may experience a stabilization or even a decrease in mortgage rates due to economic diversification strategies.
Technological advancements and the rise of fintech solutions are expected to streamline the mortgage process, possibly resulting in more personalized and competitive mortgage products.
Experts in the field of real estate and finance in Dubai point towards a consensus: the potential for property investment in Dubai remains robust.
A well-thought-out long-term mortgage plan is essential, going beyond merely securing a low initial rate. Consider the total cost of the mortgage over its life, including fees, insurance, and penalties for early repayment.
A different take: Mortgage Refinance Rates Trends

To stay alert to mortgage rate trends, consider refinancing options when rates are observed to fall, which can potentially save significant amounts of money over time.
Here are some key factors to consider when timing your mortgage investment:
- Stabilization or decrease in mortgage rates due to economic diversification strategies
- Streamlined mortgage process and competitive products from fintech solutions
- Refinancing options when rates fall
Government Policies and Interests
The Central Bank of UAE's regulatory framework has a significant impact on mortgage rates in Dubai. They set LTV ratio caps for first and subsequent property purchases to maintain the lending market's health and integrity.
Government initiatives to attract foreign investment can also affect mortgage accessibility. For instance, visa policies tied to property ownership make Dubai a more attractive destination for non-residents.
These incentives can portray mortgage in Dubai for non-residents in a more favorable light, potentially affecting demand and subsequent interest rates. The government's efforts to entice foreign investment can have a ripple effect on the mortgage market.
A unique perspective: Investment Property Mortgage Rates vs Primary Residence
Frequently Asked Questions
Are mortgages in Dubai interest free?
Mortgages in Dubai do come with interest, with rates varying based on the mortgage type, lender, and borrower's financial profile. To learn more about mortgage interest rates in Dubai, click here.
Is getting mortgage in Dubai a good idea?
Getting a mortgage in Dubai offers enhanced financial flexibility and better cash flow management, making it a viable alternative to cash purchases. Consider a mortgage for a more manageable financial approach to property ownership.
What is the 1% mortgage in Dubai?
The 1% mortgage in Dubai is a financing option where buyers pay 1% of the property's value monthly until completion. This plan offers an attractive payment structure for property buyers in Dubai.
Sources
- https://moneymall.ae/mortgages-home-loan/
- https://royalbip.ae/mortgage-rates-in-dubai/
- https://housearch.com/en/blog/post/home-loan-interest-rate-dubai/
- https://mortgagecalculator.ae/finding-the-best-current-mortgage-rate-in-the-uae-a-comprehensive-guide/
- https://gardendoghouse.com/navigating-dubai-mortgage-interest-rates-a-comprehensive-guide/
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