Today's UAE mortgage rates at a glance
| Rate type | Indicative rate (August 2026) | Best for |
|---|---|---|
| 1-year fixed | from ~3.75% | Lowest entry rate; resets sooner |
| 2–3 year fixed | ~3.95–3.99% | Balance of certainty & rate |
| 5-year fixed | from ~4.19% | Longer-term certainty |
| Variable (EIBOR-linked) | EIBOR + ~1.0–2.25% | If you expect rates to fall |
Indicative salary-transfer ranges verified 19 August 2026 — your exact rate depends on the bank, LTV, income, employer and property. Compare indicative rates by bank → or work out your payment →
Want the live numbers? We track every bank circular — see current UAE mortgage rates, verified bank by bank → Then check which is the best bank for mortgage for your profile.
How we decide which mortgage rate is “best”
The lowest introductory percentage is only one part of the comparison. We review the offer in this order:
- Profile fit: residency, income type, employer, LTV and property eligibility.
- Initial period: the fixed rate, how long it lasts and the monthly payment.
- Reversion: the EIBOR tenor, bank margin, reset frequency and any floor.
- Total cost: processing, valuation, insurance, account and settlement charges.
Rate tables use Mortg Ease’s bank circular set verified 19 August 2026. EIBOR figures below use the CBUAE fixing dated 21 August 2026. Figures are indicative, can change, and are not an offer; the lender’s Key Facts Statement and final approval control. Check the rate methodology and latest EIBOR reference.
Advertised fixed rates in this verified set start from 3.75% for eligible salary-transfer applicants. EIBOR-linked pricing combines the applicable benchmark with the lender’s margin, so the result varies by product and reset date. On a AED 2 million mortgage over 25 years, moving from 3.99% to 4.99% changes both the monthly payment and total interest materially. Compare the full cost and eligibility—not only the headline percentage—on our mortgages by bank hub.
This guide is based on the official CBUAE EIBOR fixing and Mortg Ease’s verified bank rate cards, last checked 19 August 2026. Actual rates depend on your income, LTV ratio, employer, property and negotiating position.
Work out the numbers at a specific bank
Each calculator opens on that bank’s own lowest advertised fixed rate from our verified circular set, so the monthly figure starts from a real published number. Lowest first.
- Sharjah Islamic Bankfrom 3.75%
- Arab Bankfrom 3.78%
- Emirates NBDfrom 3.89%
- Dubai Islamic Bankfrom 3.95%
- Abu Dhabi Islamic Bankfrom 3.99%
- Ajman Bankfrom 3.99%
- Commercial Bank of Dubaifrom 3.99%
- Emirates Islamicfrom 3.99%
- First Abu Dhabi Bankfrom 3.99%
- Mashreq Bankfrom 3.99%
- RAKBANKfrom 3.99%
- United Arab Bankfrom 3.99%
- HSBC UAEfrom 4.05%
- Standard Chartered UAEfrom 4.29%
How Are Mortgage Rates Determined in the UAE?
Definition: A UAE mortgage may use a rate fixed by the lender for an initial period or a variable rate linked to an EIBOR tenor plus a bank margin. The 3-month EIBOR fixing was 3.88% on 21 August 2026, according to CBUAE data. Fixed pricing, margins, floors and reset schedules are product-specific and should be checked in the lender’s Key Facts Statement.
Rate Ranges by Mortgage Type: August 2026
| Rate Type | Current Range | Best For | Key Consideration |
|---|---|---|---|
| 1-year fixed | 3.75-4.89% | Short-term certainty, rate shoppers | Reverts to variable after 12 months |
| 2-year fixed | 3.89-3.99% | Moderate certainty | Balances cost and predictability |
| 3-year fixed | 3.95-4.19% | Medium-term stability seekers | Most popular tenor; widest bank coverage |
| 5-year fixed | 4.19-4.69% | Maximum payment certainty | Highest fixed rate but longest protection |
| Variable (EIBOR +) | EIBOR + 1.00-2.25% | Borrowers expecting rates to fall | Monthly payment fluctuates with EIBOR |
| Islamic (profit rate) | 3.95-4.50% | Sharia-compliant financing | Structured as Ijarah or Murabaha, not interest |
*Mashreq standard pricing from 10 July 2026; a sharper premium tier exists for AED 50,000+ monthly salary with a minimum AED 3.5M loan. *Source: Bank rate sheets and verified broker circulars, August 2026, via Mortgease broker channels. Salaried, Salary Transfer scenario. Lowest rates reserved for high-income, low-LTV applicants with preferred employers.*
Salaried — Salary Transfer Rates (Sorted Lowest First)
For salaried applicants who transfer their salary account to the mortgage bank. Several lenders publish separate pricing for this profile, subject to employer, income, LTV and property eligibility.
| Bank | 1-Year Fixed | 2-Year Fixed | 3-Year Fixed | 5-Year Fixed | Variable (After Fixed) |
|---|---|---|---|---|---|
| Sharjah Islamic Bank | 3.75% | — | 3.99% | 4.25% | 2.25% + 3M EIBOR |
| Emirates NBD | — | 3.89% | 3.99% | 4.69% | 1.99% + 1M EIBOR |
| United Arab Bank | 3.89% | 3.89% | 4.19% | 4.49% | 1.79% + 3M EIBOR |
| RAKBANK | — | — | 3.89% | — | 1.69% + 3M EIBOR |
| Dubai Islamic Bank | — | — | 3.95% | 4.50% | 1.00% + 3M EIBOR |
| Arab Bank | — | 3.78% | 3.95% | — | 1.99% + 6M EIBOR |
| First Abu Dhabi Bank | 3.99% | 3.99% | 3.99% | 4.19% | 1.50% + 3M EIBOR |
| Abu Dhabi Islamic Bank | — | — | 3.99% | 4.34% | 1.60% + 1M EIBOR |
| Commercial Bank of Dubai | 4.89% | — | 3.99% | — | 1.69% + 3M EIBOR |
| Emirates Islamic Bank | — | — | 3.99% | 4.39% | 1.99% + 3M EIBOR |
| Ajman Bank | — | — | 3.99% | — | 1.59% + 3M EIBOR |
| HSBC | 4.05% | 4.19% | — | — | 1.09% + 3M EIBOR |
| Mashreq Bank | — | 4.49%* | — | — | 1.75% + 3M EIBOR |
*Source: Bank rate sheets and verified broker circulars, August 2026, via Mortgease broker channels. Sorted ascending by lowest available fixed rate. "—" indicates the bank does not currently offer that tenor on this scenario.*
Salaried — Non-Salary Transfer Rates
For salaried applicants who keep their salary account elsewhere. The price difference from salary-transfer products varies by lender and product.
| Bank | 1-Year Fixed | 2-Year Fixed | 3-Year Fixed | 5-Year Fixed | Variable (After Fixed) |
|---|---|---|---|---|---|
| United Arab Bank | 3.99% | 3.99% | 4.39% | 4.59% | 1.79% + 3M EIBOR |
| HSBC | 4.05% | 4.19% | — | — | 1.09% + 3M EIBOR |
| Dubai Islamic Bank | — | — | 4.10% | 4.70% | 1.50% + 3M EIBOR |
| Ajman Bank | — | — | 4.05% | — | 1.59% + 3M EIBOR |
| Arab Bank | — | 3.95% | 4.10% | — | 1.99% + 6M EIBOR |
| RAKBANK | — | 4.19% | 4.09% | — | 1.69% + 3M EIBOR |
| Emirates Islamic Bank | — | — | 4.19% | 4.59% | 1.89% + 3M EIBOR |
| First Abu Dhabi Bank | 4.24% | 4.24% | 4.24% | 4.44% | 1.50% + 3M EIBOR |
| Abu Dhabi Islamic Bank | — | — | 4.24% | 4.59% | 1.60% + 1M EIBOR |
| Sharjah Islamic Bank | 4.25% | — | 4.25% | 4.25% | 2.25% + 3M EIBOR |
| Mashreq Bank | — | 4.25% | — | — | 1.75% + 3M EIBOR |
| Emirates NBD | — | 4.39% | 4.39% | 4.79% | 1.99% + 1M EIBOR |
| Commercial Bank of Dubai | 4.99% | — | 4.49% | 4.59% | 1.69% + 3M EIBOR |
*Source: Bank rate sheets and verified broker circulars, August 2026, via Mortgease broker channels. Sorted ascending by lowest available fixed rate.*
Self-Employed Mortgage Rates
For self-employed applicants such as business owners, freelancers and consultants. Some lenders use non-salary-transfer pricing, while eligibility and documentation standards vary. See the self-employed mortgage guide before relying on a headline rate.
| Bank | 1-Year Fixed | 2-Year Fixed | 3-Year Fixed | 5-Year Fixed | Variable (After Fixed) |
|---|---|---|---|---|---|
| United Arab Bank | 3.99% | 3.99% | 4.39% | 4.59% | 1.79% + 3M EIBOR |
| HSBC | 4.05% | 4.19% | — | — | 1.09% + 3M EIBOR |
| Ajman Bank | — | — | 4.05% | — | 1.59% + 3M EIBOR |
| Dubai Islamic Bank | — | — | 4.10% | 4.70% | 1.00% + 3M EIBOR |
| Arab Bank | — | 4.25% | 4.40% | — | 1.89% + 6M EIBOR |
| RAKBANK | — | 4.25% | 4.10% | — | 1.75% + 3M EIBOR |
| Emirates Islamic Bank | — | — | 4.19% | 4.59% | 1.99% + 3M EIBOR |
| First Abu Dhabi Bank | 4.24% | 4.24% | 4.24% | 4.44% | 1.50% + 3M EIBOR |
| Abu Dhabi Islamic Bank | — | — | 4.24% | 4.59% | 1.60% + 1M EIBOR |
| Sharjah Islamic Bank | 4.25% | — | 4.25% | 4.25% | 2.25% + 3M EIBOR |
| Mashreq Bank | — | 5.49% | — | — | 1.75% + 3M EIBOR |
| Emirates NBD | — | 4.39% | 4.39% | 4.79% | 1.99% + 1M EIBOR |
| Commercial Bank of Dubai | 4.99% | — | 4.49% | 4.59% | 1.69% + 3M EIBOR |
*Source: Bank rate sheets and verified broker circulars, August 2026, via Mortgease broker channels. Sorted ascending by lowest available fixed rate.*
Variable Rate Comparison (After-Fixed / Revert Rates)
After the fixed period ends, many mortgages revert to an EIBOR tenor plus a fixed margin. A lower margin can reduce the rate, but the benchmark tenor, floor, reset schedule and fees also matter. The CBUAE fixings dated 21 August 2026 were 3.74% for 1 month, 3.88% for 3 months and 3.95% for 6 months.
| Bank | Variable Margin | Effective Rate (Approx.) | Notes |
|---|---|---|---|
| Dubai Islamic Bank | 1.00% + 3M EIBOR | ~4.88% | 3-month benchmark; confirm any floor and reset terms |
| HSBC | 1.09% + 3M EIBOR | ~4.97% | 3-month benchmark; eligibility is profile-specific |
| First Abu Dhabi Bank | 1.50% + 3M EIBOR | ~5.38% | 3-month benchmark; check the final offer terms |
| Ajman Bank | 1.59% + 3M EIBOR | ~5.47% | Islamic finance; confirm profit-rate structure |
| Abu Dhabi Islamic Bank | 1.60% + 1M EIBOR | ~5.34% | 1-month benchmark; reset schedule controls payment changes |
| Commercial Bank of Dubai | 1.69% + 3M EIBOR | ~5.57% | 3-month benchmark; check the final offer terms |
| RAKBANK | 1.69% + 3M EIBOR | ~5.57% | 3-month benchmark; eligibility is profile-specific |
| Mashreq Bank | 1.75% + 3M EIBOR | ~5.63% | 3-month benchmark; check the applicable product tier |
| United Arab Bank | 1.79% + 3M EIBOR | ~5.67% | 3-month benchmark; check the final offer terms |
| Arab Bank | 1.89% + 6M EIBOR | ~5.84% | 6-month benchmark; payment resets follow the loan terms |
| Emirates NBD | 1.99% + 1M EIBOR | ~5.73% | 1-month benchmark; check any floor and reset terms |
| Emirates Islamic Bank | 1.99% + 3M EIBOR | ~5.87% | Islamic finance; confirm profit-rate structure |
| Sharjah Islamic Bank | 2.25% + 3M EIBOR | ~6.13% | Compare the revert margin with the introductory period |
*Source: Bank rate sheets and verified broker circulars, August 2026, via Mortgease broker channels. Sorted ascending by variable margin. EIBOR rates and effective calculations approximate.*
What Determines Your Actual Rate Within the Range?
The headline rate a bank advertises is rarely what every applicant receives. These factors determine where you fall, as per standard UAE bank underwriting:
Loan-to-Value (LTV) Ratio
| LTV Range | Rate Impact |
|---|---|
| Below 60% | Best available rates (lowest risk for bank) |
| 60-75% | Mid-range rates |
| 75-80% | Highest rates within range |
As per UAE Central Bank LTV regulations, maximum LTV is 80% for expat residents on first property under AED 5 million.
Income and Employer Category
Banks use their own employer and income policies. A listed employer, stable income history or an existing banking relationship can affect:
- Which published or relationship-pricing tier is available
- The income assessment and maximum eligible loan
- The documents and processing checks required
Property Type and Location
The lender must accept the property as security. Property type, location, completion status, valuation and the lender’s exposure to a building or developer can affect eligibility and LTV. These checks do not produce a universal rate advantage.
Existing Banking Relationship
Some lenders publish different salary-transfer and non-salary-transfer products. Compare the pricing benefit with any account conditions and use the bank’s written offer rather than assuming a fixed discount.
How to Negotiate Better Mortgage Rates in the UAE
1. Get Multiple Competing Offers
Compare formal offers using the same loan amount, LTV, fixed period and fee assumptions. A competing offer can support a pricing request, but a lender may decline to match it or may apply different eligibility conditions.
2. Negotiate the Revert Rate, Not Just the Fixed Rate
Do not compare only the initial fixed rate. Ask for the EIBOR tenor, margin, reset schedule, floor and fixed-period end date in writing. A lower margin can reduce future payments, but only the lender can approve a pricing exception.
3. Offer to Move Your Salary Account
If a lender offers separate salary-transfer pricing, ask for both versions and compare the rate, account conditions and total fees. Moving an account is useful only when the written benefit suits your circumstances.
4. Check the Offer Validity and Completion Timeline
There is no reliable best month to apply. Confirm how long the rate or approval is valid and whether your valuation, property documents and transfer can be completed within that period.
5. Evaluate Early Repayment Penalties
Settlement, partial-payment and switching charges affect the true cost if you may sell, refinance or make lump-sum payments. Check the current lender Key Facts Statement and final offer, then model the full switching cost with the refinance calculator.
When a Mortgage Broker Comparison Can Help
A broker can make a multi-lender comparison easier, especially when criteria differ. The practical benefits are:
- Profile routing: compare lender criteria before spending time on an unsuitable application
- Like-for-like comparison: place fixed period, revert terms, fees and insurance on the same basis
- Application coordination: prepare the lender pack and follow valuation, credit and approval steps
- Clear commercial model: Mortg Ease does not charge the client a brokerage fee; the lender may pay a commission if a mortgage completes. This does not guarantee the lowest rate or approval.
Fixed vs Variable: Which to Choose in 2026?
Choose Fixed (3-5 Years) If:
- You want payment certainty and predictable monthly commitments
- You believe rates may stay elevated or rise
- You are stretching your budget and cannot absorb payment increases
- This is your first mortgage and you value stability
Choose Variable (or 1-Year Fixed) If:
- You are comfortable with monthly payment fluctuations
- You understand that EIBOR may move up or down and can tolerate the change
- You have financial buffer to absorb 10-20% payment increases
- You plan to sell or refinance within 2-3 years
The Popular Middle Ground
A 1-2 year fixed period can provide short-term certainty with an earlier reversion date. Compare its initial saving with the post-fixed margin and the cost of refinancing if you plan to reassess.
When to Consider Refinancing Your UAE Mortgage
If you already have a mortgage, compare today’s total switching cost with the expected saving over the period you plan to keep the loan. Refinancing may be worth modelling when:
- Your current rate is materially above an offer available for your profile
- Your fixed period ended and you reverted to an unfavourable variable rate
- Your financial profile improved (higher salary, lower debts) since original application
- You want to switch from variable to fixed or vice versa
Refinancing costs: settlement, registration, valuation, processing, release and insurance-related charges can apply. Use the current lender documents and proposed offer to calculate the break-even point; do not rely on a generic fee percentage.
For a detailed refinancing guide, see our mortgage refinancing in UAE guide. To understand how your salary affects borrowing capacity at these rates, check our mortgage calculator UAE guide.
For expat-specific rate considerations, see our expat mortgage in Dubai guide.
Frequently Asked Questions
1. What is the lowest mortgage rate available in the UAE right now?
As verified on 19 August 2026, advertised salary-transfer mortgage rates start from 3.75% at Sharjah Islamic Bank and 3.78% at Arab Bank. Emirates NBD, RAKBANK and United Arab Bank advertise selected fixed products from 3.89%. Headline rates depend on income, employer, LTV, salary transfer and the property; self-employed and non-salary-transfer pricing varies by lender.
2. Are Islamic mortgage rates higher than conventional rates?
Not necessarily. Islamic mortgage products (Ijarah, Murabaha, Diminishing Musharakah) are priced to be competitive with conventional mortgages. DIB, ADIB, and the Islamic windows of conventional banks offer comparable profit rates. The economic effect is equivalent to interest even though the legal structure differs.
3. Can I switch from variable to fixed rate with my current bank?
Some banks allow rate-type switches during the mortgage term, though a fee may apply. The more common approach is refinancing with a different bank offering your preferred structure. Always compare switching/refinancing costs against potential savings.
4. How often do variable mortgage rates change in the UAE?
CBUAE publishes EIBOR fixings on UAE business days. Your mortgage changes on the benchmark tenor and reset schedule stated in its Key Facts Statement, so the payment does not necessarily change every day.
5. Is it worth paying more for a longer fixed period?
A longer fixed period can cost more initially but provides more payment certainty. Whether it is worthwhile depends on the price difference, your budget buffer, expected holding period, reversion terms and switching costs.
6. How much does 0.5% difference in rate actually cost over the full mortgage term?
On a AED 2,000,000 mortgage over 25 years, a 0.5% rate difference translates to approximately AED 130,000-170,000 in total interest. On a AED 3,000,000 mortgage, that becomes AED 195,000-255,000. This is why comparing rates across multiple banks is critical.
7. Do banks offer better rates for larger mortgages?
Some lenders publish separate pricing tiers for larger loans or relationship-banking customers, but this is lender-specific. Income, assets, LTV, property and the full banking relationship still affect eligibility and final pricing.
8. What is the EIBOR rate and why does it matter for my mortgage?
EIBOR is a UAE dirham benchmark published by the Central Bank of the UAE. The 3-month EIBOR fixing was 3.88% on 21 August 2026. Many variable mortgages are priced as an EIBOR tenor plus a lender margin; the loan’s reset schedule determines when a benchmark change affects the payment.
9. Can I negotiate mortgage rates in the UAE or are they fixed?
Published mortgage rates are not a guarantee of final pricing. Depending on the lender and profile, a formal competing offer or broader banking relationship may support an exception request. A broker can compare lender criteria and present the request, but cannot guarantee an exception or approval.
10. When is the best time of year to lock in a mortgage rate in the UAE?
There is no reliably best month to lock a UAE mortgage rate. Apply when your purchase and documents are ready, compare formal offers with the same assumptions, and check the validity period because rate cards and EIBOR-linked pricing can change.
Check your mortgage eligibility in 2 minutes -- free, zero-obligation assessment. Talk to Mortgease's advisory team on WhatsApp or visit mortgease.ae to get started today.
Check your mortgage eligibility in 2 minutes
Free, zero-obligation assessment from Mortgease's advisory team
Talk to Us on WhatsApp
