2000+ products from 12+ banks. Islamic and conventional. Sorted by reducing rate.
Last updated: May 2026
The best UAE mortgage rate available right now is 3.25% reducing, from National Bank of Fujairah on their Islamic home finance product (MortgageCompare.ae, May 2026). The best conventional rate is 3.70% reducing from HSBC. Both are initial fixed rates that revert to EIBOR plus the bank's margin once the fixed period ends.
The two benchmarks driving every rate on this page: 3-month EIBOR is 3.69% (CBUAE published rate, May 2026) and the CBUAE base rate is 3.65%. Variable mortgages revert to EIBOR plus a fixed margin after the introductory period. At current EIBOR, a reversion to EIBOR + 1.25% means a post-fixed rate of around 4.94%. Factor that into your planning, not just the headline introductory number.
We track 55+ products from 12+ UAE banks and update rates when they change. The table below shows published initial rates for a standard purchase: employed borrower, first property under AED 5M, 80% LTV. Your actual offer depends on your employer category, credit profile, and whether you transfer your salary to the lending bank.
| # | Bank / Product | Type | Rate | Min Salary | Monthly (AED 1M) | Down Payment | Features |
|---|---|---|---|---|---|---|---|
| 1 | NBF Islamic Home Finance |
Islamic | 3.25% | AED 15,000 | AED 4,878 | 20% | Shariah Compliant |
| 2 | Standard Chartered Saadiq Home Suite |
Islamic | 3.50% | AED 15,000 | AED 5,006 | 20% | No Salary Transfer |
| 3 | Dubai Islamic Bank Al Islami Home Finance (Nationals) |
Islamic | 3.65% | AED 7,000 | AED 5,086 | 15% | Shariah Compliant, No Salary Transfer |
| 4 | United Arab Bank Home Finance |
Islamic | 3.65% | AED 15,000 | AED 5,086 | 20% | No Salary Transfer |
| 5 | HSBC New Home Loan |
Conventional | 3.70% | AED 15,000 | AED 5,106 | 25% | No Salary Transfer |
| 6 | Aafaq Finance (ADF) Residential Mortgages |
Conventional | 3.75% | AED 10,000 | AED 5,136 | 20% | No Salary Transfer |
| 7 | Standard Chartered MortgageOne Loan |
Islamic | 3.85% | AED 15,000 | AED 5,189 | 20% | No Salary Transfer |
| 8 | PRYPCO Mortgage for ExpatsProduct of Month |
Conventional | 3.95% | AED 8,000 | AED 5,243 | 20% | Free pre-approval, Instant pre-approval |
| 9 | PRYPCO Mortgage for UAE NationalsProduct of Month |
Conventional | 3.95% | AED 10,000 | AED 5,243 | 15% | Free pre-approval, Instant pre-approval |
| 10 | ADIB Home Finance for Expats |
Islamic | 4.20% | AED 15,000 | AED 5,389 | 25% | Shariah Compliant, No Salary Transfer |
| 11 | ADIB Home Finance for UAE Nationals |
Islamic | 4.20% | AED 10,000 | AED 5,389 | 20% | Shariah Compliant, No Salary Transfer |
| 12 | SIB Tamallak Home Finance |
Islamic | 6.25% | AED 25,000 | AED 6,593 | 25% | No Salary Transfer |
| 13 | Arab Bank Ready Property Loan |
Conventional | 6.70% | AED 20,000 | AED 6,878 | 25% | No Salary Transfer |
Every mortgage rate you see in the UAE traces back to two numbers: the CBUAE base rate and EIBOR, the Emirates Interbank Offered Rate. The CBUAE base rate is set by the Central Bank of the UAE and currently sits at 3.65%. EIBOR is the rate at which UAE banks lend to each other overnight and at 1-, 3-, 6-, and 12-month tenors. The 3-month EIBOR (3.69% as of May 2026) is the benchmark most mortgage variable rates are linked to.
The connection to the United States matters here. The UAE dirham is pegged to the US dollar at a fixed rate, and the CBUAE base rate moves in lockstep with the US Federal Reserve's federal funds rate. When the Fed cuts, the CBUAE cuts within 24 hours. When the Fed raises rates, the CBUAE follows. This means UAE mortgage rates are directly tied to US monetary policy, which is unusual by global standards but predictable once you understand it.
Here is how it flows from policy rate to your monthly payment:
Banks can and do go below their published rates for attractive borrowers. Government employees, borrowers with existing relationships, and those with high salaries relative to their loan size all get better offers. The table rates are published floor rates, not guaranteed quotes.
Most UAE mortgage products are described as "fixed" but are fixed only for an initial period, typically 1 to 3 years. After that, they become variable, tracking EIBOR plus the bank's margin. There are very few genuinely long-term fixed products in the UAE market. Understanding this structure matters because the introductory rate you see in the comparison table is not the rate you will pay for most of your mortgage's life.
Lower introductory rate. You revert to EIBOR + margin sooner, which means you benefit more quickly if EIBOR falls. More frequent refinancing decisions. Better if you expect rates to fall or plan to sell the property within a few years.
Payment certainty for longer. Usually a slightly higher introductory rate than the 1-year equivalent. Protects you if EIBOR rises. Better if you want to budget predictably and are not planning to sell or refinance soon.
The decision comes down to your view on EIBOR direction and your personal need for payment certainty. With the Fed signalling further cuts through 2026 and EIBOR likely to follow, many UAE borrowers are choosing shorter fixed periods to position for lower reversion rates. That works if EIBOR does fall. If US inflation resurges and the Fed reverses, variable rates rise and you pay more than a longer-fixed borrower would.
One practical consideration: UAE banks charge an early settlement fee when you refinance, capped at 1% of the outstanding balance for variable-rate products by CBUAE regulation. If you plan to refinance when your fixed period ends, factor that cost into your comparison. On a AED 1 million loan it is AED 10,000. On a AED 2 million loan it is AED 20,000. Worth paying if the rate saving is significant, but it is a real cost.
Use our mortgage calculator to model both scenarios: your payment on the introductory rate, and your payment if the reversion rate is EIBOR plus 1.25% at today's EIBOR level. The difference tells you how much rate risk you are carrying after year one.
Banks publish their most competitive rate, which applies to a specific customer profile. Those rates are real, but they are the floor, not the average. Several factors can move your offered rate above the published figure:
The most effective way to get a better rate is to get pre-approvals from two or three banks simultaneously and share competing offers with your preferred lender. Banks will often match or beat a competitor's rate rather than lose the deal. Processing fees (0.5% to 1% of the loan) are also negotiable and sometimes waived entirely for larger loans.
UAE mortgage rates track the US Federal Reserve because of the AED-USD peg. Any movement in the Fed funds rate flows through to the CBUAE base rate within 24 hours, which then flows through to EIBOR over the following days and weeks.
As of May 2026, market expectations (Fed funds futures) price in one to two further Fed cuts through the end of 2026. If those cuts materialise, UAE mortgage rates could fall by a corresponding amount. A 0.50% fall in EIBOR would reduce the reversion rate on a variable mortgage from the current 4.94% (EIBOR + 1.25%) to approximately 4.44%. On a AED 1.2 million loan over 25 years, that is a saving of approximately AED 350 per month.
The risk scenario is the one that US inflation data has introduced periodically through 2025: a resurgence in US price growth that causes the Fed to pause or reverse its cutting cycle. If that happens, EIBOR stays flat or rises, and UAE variable mortgage rates do not fall. Fixed-rate borrowers would be insulated; variable-rate borrowers would see no benefit.
For the latest analysis of where EIBOR and UAE mortgage rates are heading, including a month-by-month EIBOR history table and Fed meeting tracker:
Read the UAE mortgage rate outlook for 2026 →Understand what EIBOR is, how it is set, and how it affects your monthly payment:
EIBOR tracker and history →Ready to see what you qualify for?
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