Mashreq extends May mortgage pricing — 0.25% rate increase on sub-AED 1M salaried loans, Neo Plus fee refund discontinuing
Mashreq Bank has extended its 2026 mortgage pricing through 31 May 2026, introducing a 0.25% rate increase on salaried loans under AED 1 million, refreshing Neo Plus valuation-fee-refund mechanics, and continuing the AED 1,050 pre-approval fee waiver across all segments.
Headline pricing changes (effective 1 – 31 May 2026)
Mashreq has split its salaried pricing into Premium and Standard tiers and applied a 0.25% increase to fixed rates on smaller loan sizes (under AED 1M).
- Premium pricing applies if salary transfer is AED 40,000+ or loan amount is AED 3 million+.
- Standard pricing applies to all clients not meeting the premium criteria.
Salaried 2-year fixed rates
| Segment | Variable Margin (3M EIBOR +) | Floor | Fixed Rate | Revert (after 2 yrs) |
|---|---|---|---|---|
| Salaried — Premium (Salary Transfer or DK Loan ≥ AED 5M) | 1.49% | 1.69% | 3.99% | 1.75% + 3M EIBOR (floor 3.99%) |
| Salaried — Standard (all remaining) | 1.49% | 1.49% | 4.25% | 1.75% + 3M EIBOR (floor 4.25%) |
Self-Employed and Non-Resident
| Segment | Variable Margin | Floor | Fixed Rate |
|---|---|---|---|
| Self-Employed / Low-Doc — Premium (Loan ≥ AED 3M) | 2.25% + 3M EIBOR | 2.25% | 4.99% |
| Self-Employed / Low-Doc — Standard | 2.25% + 3M EIBOR | 2.25% | 5.25% |
| Non-Resident — Premium (Loan ≥ AED 3M) | 2.99% + 3M EIBOR | 2.99% | 5.75% |
| Non-Resident — Standard | 2.99% + 3M EIBOR | 2.99% | 5.99% |
Neo Plus valuation fee refund — being discontinued
Mashreq is winding down the Neo Plus valuation-fee-refund offer with a 60-day notice period.
- Existing Neo Plus customers: 60-day discontinuation notice (under CPR) issued on 10 May 2026. Mortgage must be availed on or before 10 July 2026 to keep the valuation-fee refund.
- Customers not currently on Neo Plus: upgrades or conversions to Neo Plus after 10 May 2026 will not qualify for the valuation-fee refund.
While the offer runs, Neo Plus customers setting up salary transfer (salary > AED 10,000) remain eligible for an AED 2,625 valuation-fee refund after two successful salary credits.
What stays the same
- AED 1,050 pre-approval fee waiver continues for all segments until 31 May 2026.
- POL & FOL (Final Offer Letter) validity: 30 days for all fixed-rate cases.
- Green Mortgage discount: 0.25% off the applicable margin (for variable from Day 1) and 0.25% off the revert margin (post fixed period) — available on both Premium and Standard pricing.
What it means for borrowers
The 0.25% increase on sub-AED 1M loans is meaningful for first-time buyers in the AED 800K–950K bracket — on a 25-year mortgage that 0.25% adds roughly AED 22,000–26,000 in total interest. Worth comparing alternatives before locking in.
For larger loans (AED 3M+) or higher salaries (AED 40K+), Mashreq's Premium tier at 3.99% remains competitive with the best in the market. The Green Mortgage 0.25% margin discount is a small but meaningful win for energy-efficient property purchases.
If you're a Mashreq Neo Plus customer thinking about a mortgage, the 10 July 2026 deadline matters — lock in before then to retain the AED 2,625 valuation-fee refund.
Need to talk it through? Mortgease's advisory team can help you map this against your specific situation — free, no obligation.
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