3-month EIBOR rate in the UAE: today's reading and what it means
- The 3-month EIBOR is 3.69% as of June 2026, per the Central Bank of the UAE.
- Your variable rate is the 3-month EIBOR plus a bank margin, usually 1.25% to 1.75%, so 4.94% at a 1.25% margin.
- A 1 percentage point move in EIBOR shifts the payment on a AED 1.5M loan over 25 years by roughly AED 900 a month.
The 3-month EIBOR is 3.69% as of June 2026 (CBUAE published rate). It is the benchmark the large majority of UAE variable mortgages reset against, so once any introductory fixed period ends, your rate becomes the 3-month EIBOR plus your bank's margin, and your monthly payment moves with it.
If you are comparing UAE mortgages, the 3-month EIBOR is the single number that decides what you pay after the headline fixed rate runs out. This page gives you today's reading, explains how the rate is set, and shows in dirhams what a move in the rate does to a real mortgage.
What the 3-month EIBOR is
EIBOR stands for the Emirates Interbank Offered Rate. It is the rate at which UAE banks lend dirhams to each other, and the Central Bank of the UAE publishes it every business day. The 3-month version, written as 3M EIBOR or EIBOR 3M, is the rate for three-month interbank lending. It is the tenor most UAE banks use to price variable home loans, which is why it gets far more attention than the overnight or 12-month rates.
Think of it as the wholesale cost of money for three months. Your bank borrows at roughly this rate, then lends to you at the 3-month EIBOR plus a fixed margin that covers their cost and profit. That margin is set in your contract and does not change. The EIBOR part does.
Why the 3-month rate is the one that matters for your mortgage
Most UAE mortgages are structured in two stages. You get an introductory fixed rate for 1 to 3 years, then the rate reverts to the 3-month EIBOR plus your bank's margin for the rest of the term. Because a typical mortgage runs for 25 years, you spend most of the loan on that reversion rate, not the headline fixed rate. That makes the 3-month EIBOR the number that decides the true long-run cost of your loan.
Here is the maths at today's level. If your contract reverts to 3-month EIBOR plus 1.25%, your post-fixed rate is 3.69% plus 1.25%, which is 4.94%. A wider margin of 1.75% gives 5.44%. Two borrowers with the same EIBOR can pay very different reversion rates purely because of the margin they signed, so read the margin as carefully as the introductory rate.
How the 3-month EIBOR is set
A panel of UAE banks submits the rate at which each is willing to lend for three months. The Central Bank takes those submissions at the daily fixing, drops the two highest and two lowest to remove outliers, and averages the rest. The fixing happens at 11:00 UAE time on every business day except Saturday. Published rates apply on a short delay, so the figure shown for a given date is generally applied two business days later.
The 3-month EIBOR tracks the CBUAE base rate closely, and the base rate tracks the US Federal Reserve, because the dirham is pegged to the US dollar. So when you read that the Fed has cut or held, you can expect EIBOR to follow in the same direction within days to weeks.
How a move in the 3-month EIBOR changes your payment
The cleanest way to see the impact is on a real loan. Take a AED 1,500,000 mortgage over 25 years, sitting on its reversion rate of EIBOR plus 1.25%.
| 3-month EIBOR | Your rate (EIBOR + 1.25%) | Monthly payment | Change vs today |
|---|---|---|---|
| 2.69% (1% lower) | 3.94% | AED 7,856 | -AED 869 |
| 3.69% (today) | 4.94% | AED 8,725 | baseline |
| 4.69% (1% higher) | 5.94% | AED 9,629 | +AED 904 |
Figures use the standard reducing-balance amortisation formula on a AED 1.5M loan over 25 years, rounded to the nearest dirham. Calculate your own loan with the mortgage calculator.
A 1 percentage point move in the 3-month EIBOR shifts this payment by roughly AED 900 a month. That is the exposure every variable-rate borrower carries, and it is why the direction of EIBOR matters more than a small difference in the introductory rate.
The EIBOR curve: where the 3-month sits
The Central Bank publishes EIBOR across several tenors. Shorter tenors usually price below longer ones when the market expects rates to hold or fall. The shape below is indicative for June 2026. For the exact daily fixing across every tenor, check the Central Bank of the UAE or our EIBOR tracker.
| Tenor | Indicative rate (Jun 2026) | Common use |
|---|---|---|
| Overnight | ~3.35% | Bank liquidity management |
| 1 month | ~3.65% | A minority of variable mortgages, short-term facilities |
| 3 months | 3.69% | Most variable UAE mortgages |
| 6 months | ~3.72% | Some mortgages and corporate loans |
| 12 months | ~3.90% | Longer reset products |
Indicative levels, June 2026. The 3-month and base rate figures are the firm CBUAE readings we track; other tenors are approximate and move daily. Source: CBUAE.
3-month vs 1-month EIBOR: which does your mortgage use?
Most UAE banks reset variable mortgages on the 3-month EIBOR, so your rate is recalculated every three months. A smaller number of products use the 1-month rate, which resets monthly and reacts faster in both directions. Your offer letter states which tenor applies. If you are choosing between products, a 3-month reset gives you slightly more payment stability, while a 1-month reset passes through rate cuts (and rises) sooner. We cover this in detail in the 1-month EIBOR guide.
Frequently asked questions
What is the 3-month EIBOR today?
The 3-month EIBOR is 3.69% as of June 2026, per the Central Bank of the UAE. It is published every business day, so confirm the live figure on the CBUAE site or our EIBOR tracker before you sign anything.
Is my mortgage rate the 3-month EIBOR?
Not directly. Your variable rate is the 3-month EIBOR plus a fixed margin set by your bank, usually 1.25% to 1.75%. At a 3.69% EIBOR, a margin of 1.25% gives a rate of 4.94%. During an introductory fixed period, EIBOR has no effect on your payment until that period ends.
How often does the 3-month EIBOR change my payment?
On a standard 3-month reset, your bank recalculates your rate every three months using the latest reading. Your monthly payment then holds until the next reset. So a single daily move in EIBOR does not change your payment immediately; it is the reading at your reset date that counts.
Will the 3-month EIBOR fall in 2026?
EIBOR follows the CBUAE base rate, which tracks the US Federal Reserve because of the dirham peg. If the Fed cuts further through 2026, EIBOR is likely to drift down with it. If US inflation forces the Fed to hold, EIBOR holds too. No one can promise a direction, so plan for your reversion rate at today's level rather than a hoped-for cut.
What to do next
Start with the rate comparison page to see every current product and its reversion margin, then use the calculator to model your own loan at today's EIBOR. For the daily reading and history, keep our EIBOR tracker bookmarked. Today's 3-month EIBOR: 3.69% (CBUAE, June 2026).
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