Formula
What this calculator does
This is a comprehensive mortgage comparison tool for the 12 major UAE mortgage lenders. Pick a bank from the dropdown to instantly recalculate your monthly installment using that bank's current fixed or EIBOR-linked variable rate. The side-by-side comparison panel below the result lets you switch lenders with a single click. CBUAE LTV caps adjust automatically based on your selected nationality (UAE national vs Expat), purchase type (first/second/investment), and whether the property is above or below AED 5M - the same regulation applies to every bank, but the rate and processing fee differ.
The 12 UAE mortgage lenders covered
Sharjah Islamic Bank (3.49%) - tied lowest published fixed rate. Dubai Islamic Bank (3.49%) - largest UAE Islamic bank. Standard Chartered Saadiq (3.50%) - international bank Islamic window. ADIB (3.59%) - Abu Dhabi flagship Islamic bank. HSBC (3.70%) - best mainstream conventional option for expats. RAKBANK (3.85%) - strong digital onboarding. Emirates NBD (3.99%) - largest UAE bank by retail customers. Mashreq Bank (4.10%) - historically competitive lender. FAB (4.20%) - largest UAE bank by assets. ADCB (4.25%) - major Abu Dhabi conventional bank. Emirates Islamic (4.25%) - Emirates NBD's Islamic subsidiary. CBD (4.49%) - Dubai property market specialist.
Fixed vs variable rate mortgages
Fixed-rate mortgages lock the rate for an initial period - typically 1, 2, or 3 years - then revert to a variable rate (1-month EIBOR + margin). Fixed rates dominate the UAE market because they give certainty for the first few years; rates around 3.49-3.99% for 3-year fixed products are highly competitive following the CBUAE's December 2025 base rate cut to 3.65%. Variable-rate mortgages track EIBOR and move with central bank decisions - lower upfront but volatile. After the fix period, you can either let the loan float on EIBOR + margin (typically 1.5-2.5%) or apply to another bank's promotional fixed rate (a 'mortgage transfer'). Most buyers re-fix every 3 years.
Islamic vs conventional mortgages
Islamic banks (Sharjah Islamic, DIB, Standard Chartered Saadiq, ADIB, Emirates Islamic) structure their mortgages as Ijara Muntahia Bittamleek (lease-to-own) or Murabaha (cost-plus sale). The bank purchases the property and either leases it to you with title transferring at the end (Ijara), or sells it to you at a markup with deferred payments (Murabaha). Conventional banks (HSBC, RAKBANK, Emirates NBD, Mashreq, FAB, ADCB, CBD) offer standard interest-based mortgages. The economic outcome is similar, and CBUAE limits apply equally to both. Islamic products often have no late-payment interest (instead a small charitable donation), and restrictions on what the financed property can be used for.
CBUAE binding limits (same for all banks)
Every UAE mortgage lender must operate within CBUAE's Mortgage Loan Regulation (Notice 31/2013, Article 3). LTV caps: UAE national first home ≤ AED 5M = 85%; UAE national first home > AED 5M = 75%; expat first home ≤ AED 5M = 80%; expat first home > AED 5M = 70%; UAE national second home = 65%; expat second home = 60%; under-construction/investment = 50% (both nationalities). DBR cap = 50% (total monthly debt service vs gross monthly income). Maximum tenure = 25 years. Maximum age at maturity = 65 for salaried, 70 for self-employed. These limits are non-negotiable. Processing fees are capped at 1% of loan amount (no fixed AED cap, unlike Saudi). 5% VAT applies to processing fees.
How to choose between UAE banks
1. Compare effective rates (KFS): The published fixed rate is one input; the post-fix EIBOR margin, processing fees, life insurance bundling, and early-settlement fees affect total cost. Request the Key Facts Statement from 3-5 banks. 2. Salary transfer: The lowest rates require full salary transfer to the lending bank - check whether your employer can route your salary there. 3. Employer profile: Banks have approved-employer lists; if your employer is 'preferred', you get the headline rate, otherwise you pay 0.25-0.5% more. 4. Tenor at maturity: If you'll be over 65 at the end of tenure, the bank shortens the loan or adds life insurance cost. 5. Property valuation: Each bank uses its own valuer; valuations vary 5-10%. Lower bank valuation = lower loan amount. 6. Conversion options: After the fix period, you can refinance to another bank ('mortgage buyout') if their rate is materially lower - factor in early settlement fees (CBUAE caps at 1% or AED 10,000).
Frequently asked questions
As of April-May 2026, the lowest published fixed rates are: Sharjah Islamic Bank at 3.49% (1-year fixed), Dubai Islamic Bank at 3.49%, Standard Chartered Saadiq at 3.50% (Islamic), ADIB at 3.59% (Islamic, 3-year fixed), and HSBC at 3.70% (the best mainstream conventional option for expats). After the CBUAE base rate cut to 3.65% in December 2025, fixed mortgage rates are at multi-year lows. The headline rates require full salary transfer and a preferred employer.
Per CBUAE Notice 31/2013 (Article 3): expats buying a first home valued AED 5M or less can borrow up to 80% LTV (20% down payment). For first homes above AED 5M, the cap drops to 70%. Second/additional homes: 60% LTV. Under-construction/off-plan: 50% LTV. UAE nationals get 5 percentage points higher caps in each tier. These limits are non-negotiable - no bank can exceed them.
In 2026, fixed rates are the better choice for most buyers because they're at multi-year lows (3.49-3.99% for 3-year fixed) after the CBUAE rate cut to 3.65%. Variable rates track 1-month EIBOR + a margin of 1.5-2.5% and currently produce effective rates of 5-6%. The fixed-rate certainty for 3 years is worth it. After the fix period ends, most borrowers refinance ('mortgage buyout') to capture whatever the best 3-year fixed offer is at that time, paying the early settlement fee (CBUAE caps at 1% or AED 10,000).
Yes. Expats can obtain UAE mortgages on freehold property (in designated freehold zones across Dubai, Abu Dhabi, and other emirates). Requirements: residence visa, minimum monthly salary varying by bank (typically AED 15,000-25,000), age 21-65 at maturity, employer on the bank's approved list, full salary transfer to the lending bank, and 20% down payment minimum (for properties under AED 5M). Most banks offer mortgages to expats on the same terms as UAE nationals, but with 5-percentage-point lower LTV caps.
Conventional mortgages charge interest on a loan. Islamic mortgages restructure the deal so there's no interest: in Ijara (lease-to-own), the bank buys the property and leases it to you; your monthly payment includes a lease portion (the bank's 'profit') plus an asset purchase portion; at the end you take ownership. In Murabaha (cost-plus sale), the bank buys the property and immediately sells it to you at a markup, payable in installments. The economic outcome is similar to a conventional loan with the same rate. Differences: no late-payment interest in Islamic products (small charitable donation instead), and restrictions on property use.
Sources
- Regulations Regarding Mortgage Loans (Notice 31/2013) - CBUAE— Central Bank of the UAE (CBUAE)
- Article (3): Important Ratios - CBUAE Rulebook— Central Bank of the UAE
- UAE Mortgage Rates Today: Compare All Banks - Mortgease (2026 Update)— Mortgease
- Dubai Mortgage Rates 2026: Compare Home Loans From 12+ Banks— MortgageCompare.ae
- Mortgage Rates Today UAE - May 2026— Capital Zone
- Best Banks for Islamic Mortgage in Dubai (2026 Guide)— Islamicmortgage.ae
Did we solve your problem today?
