Property Mortgage and Interest Rates in Dubai

Mortgage and interest rates in Dubai

Mortgages & Interest Rates

Most lenders and providers offer property mortgages on fixed or variable rate:

Fixed Rate Mortgage

A fixed rate mortgage sets the interest rate at the start of the mortgage, and this remains fixed throughout the full term, which is usually set at between one and five years. After this time, the mortgage will move to a variable rate 

Repayment for a fixed rate mortgage can be made at any time during the term, and borrowers can do this without being penalised.

Fixed-rate mortgages allow you to have certainty about the size of your repayments for a set amount of time, but it’s worth considering a variable rate deal if interest rates look likely to fall.

Variable Rate Mortgage

The interest rate of a variable rate mortgage change with the market, so it could fluctuate significantly and present more uncertainties for borrowers. However, they can convert it to a fixed rate mortgage any time.

There are, of course, advantages to opting for a variable rate mortgage. When interest rate is low, borrowers can potentially save a substantial amount of money from making smaller monthly payments and reducing the overall total repayment.

Property Mortgage Rates

It is helpful to note that mortgage rates in the UAE tend to see rather significant movements, driven mainly by the economy.

The latest mortgage rate sits comfortably below 4%, making it easier for expats to own a new home that offers the type of architectural design and range of amenities that meet their lifestyle needs.

Get in touch with our mortgage advisors to discuss your requirements.