Best fixed rate mortgage UAE 2026: which banks offer the lowest?
- The lowest conventional fixed rate is 3.78% from Arab Bank.
- For Islamic home finance the lowest is 3.75% from Sharjah Islamic Bank.
- These are introductory rates for 1 to 5 years, then the loan reverts to EIBOR plus the bank margin, around 5.16% to 5.66%.
The lowest fixed rate mortgage in the UAE is 3.78% from Arab Bank for conventional borrowers, and 3.75% from Sharjah Islamic Bank for Islamic home finance. These are introductory fixed-period rates, not rates for the full 25-year term. After the fixed period (typically 1 to 5 years) the mortgage reverts to 3-month EIBOR plus the bank's margin, currently running at around 5.16% to 5.66%. See the comparison table below for rates by bank and a guide to choosing your fix length.
What "fixed rate" means on a UAE mortgage
In the UAE, a fixed rate mortgage is not fixed for the full loan term the way it is in some other markets. Instead, you get an introductory fixed period, typically 1, 2, 3, or 5 years. During that period, your monthly payment does not change regardless of what EIBOR does. After the period ends, the mortgage reverts to a variable rate calculated as 3-month EIBOR plus a bank margin.
That margin is written into your facility agreement when you take the mortgage and stays constant for the life of the loan. So a lender offering a 1.30% margin today will charge you EIBOR + 1.30% from the day your fix ends until you pay off or refinance. With EIBOR currently at 4.37%, a 1.30% margin gives a reversion rate of about 5.67%.
This structure means you are making two decisions at once: how low a rate you want during the fixed period, and how competitive a margin you want for the variable period that follows. The bank with the lowest teaser rate does not always have the lowest lifetime cost.
Best fixed rate mortgages in the UAE compared
The table below shows the published introductory rates from the main UAE lenders. All rates are for salaried borrowers on a first residential property under AED 5 million with a 20% deposit. Rates vary by profile.
| Bank | Type | Intro rate | Reversion (EIBOR + margin) | Typical fix lengths |
|---|---|---|---|---|
| Sharjah Islamic Bank | Islamic | 3.75% Lowest Islamic | EIBOR + 1.75% | 1 yr |
| Arab Bank | Conventional | 3.78% Lowest conventional | EIBOR + 1.30% | 1, 2, 3 yr |
| Dubai Islamic Bank | Islamic | 3.95% | EIBOR + 1.35% | 1, 2, 3 yr |
| Abu Dhabi Islamic Bank (ADIB) | Islamic | 3.99% | EIBOR + 1.40% | 1, 2, 3 yr |
| First Abu Dhabi Bank (FAB) | Conventional | 3.99% | EIBOR + 1.50% | 1, 2, 3 yr |
| HSBC UAE (Private and Premier tier) | Conventional | 4.05% | EIBOR + 1.25% | 1, 2, 3 yr |
| ADCB | Conventional | 4.13% | EIBOR + 1.50% | 1, 2, 3 yr |
| Standard Chartered | Conventional | 4.67% | EIBOR + 1.25% | 1, 2, 3 yr |
| National Bank of Fujairah (June 2026 figure, not re-verified) | Islamic | 4.25% | EIBOR + 1.25% | 1, 2, 3 yr |
Published introductory rates for salaried first-property buyers, 20% deposit, loan under AED 5M. Reversion rates at the current 3-month EIBOR of 4.37% are: HSBC 5.16%, Emirates NBD 5.21%, ADCB/FAB 5.41%. Actual rates offered depend on borrower profile, employer category, and credit score. Source: MortgageCompare.ae rate data.
The lowest intro rate is not always the cheapest mortgage. A bank offering 3.99% with a 1.25% reversion margin beats one offering 3.89% with a 1.75% reversion margin within a few years. On a AED 1.5M mortgage over 25 years, the difference in reversion margin alone costs around AED 75,000 in extra interest over the variable period.
Reversion rates: what you pay after the fix ends
Every UAE borrower needs to understand the reversion rate before signing. The reversion formula is simple: 3-month EIBOR plus the bank's fixed margin. EIBOR moves with global rates; the margin stays fixed. At the current 3-month EIBOR of 4.37%, here is what the reversion rates look like by margin:
| Bank margin | Reversion rate at EIBOR 4.37% | Monthly cost on AED 1.5M loan, 20 yr remaining |
|---|---|---|
| 1.25% (e.g. HSBC, NBF) | 5.16% | AED 10,032 |
| 1.30% (e.g. Emirates NBD) | 5.21% | AED 10,074 |
| 1.50% (e.g. ADCB, FAB) | 5.41% | AED 10,242 |
| 1.75% | 5.66% | AED 10,454 |
Monthly payment is the reducing-balance amortisation of AED 1.5M over 20 years at the reversion rate. If EIBOR falls by 0.50%, each reversion rate drops by 0.50% and monthly costs fall by around AED 415 on this loan size. Source: MortgageCompare.ae calculator.
At today's EIBOR, reversion is noticeably more expensive than even the highest intro rate. Expecting rates to fall over your mortgage term is reasonable, since the CBUAE follows the US Federal Reserve and further Fed cuts are possible through 2026. But you cannot guarantee when or by how much rates move. The safest plan is to use a competitive reversion margin as a tiebreaker between banks at similar intro rates.
How to choose your fix length
Most UAE banks offer fixed periods of 1, 2, or 3 years. Some offer 5 years, though the rate premium for locking in longer is usually 0.20 to 0.50 percentage points above the 1-year option. Here is how to think about each length.
1-year fix
You get the lowest intro rate available. After 12 months you can refinance with a new lender (subject to early exit rules) to grab another introductory deal. This is the most flexible option and makes sense if you think EIBOR will fall in the next 1 to 2 years, because you can then lock in a new intro rate at a lower starting point. The risk is that if rates rise sharply you could face a higher rate sooner than expected.
2 to 3-year fix
A reasonable balance. You lock in certainty for long enough to plan your budget, but your fix ends before a standard 5-year review cycle. Most borrowers in the UAE choose 2 or 3-year fixes because the rate premium over a 1-year fix is small, and it gives breathing room to absorb any near-term EIBOR volatility.
5-year fix
The most conservative option. Useful if you need payment stability over an extended period, for example if your income is variable or you are stretching to afford the property. The trade-off is a higher intro rate and the fact that if EIBOR falls sharply, you are locked out of the benefit. Refinancing during a 5-year fix can trigger early exit fees.
CBUAE early settlement fee cap: Under CBUAE rules, banks can charge up to 1% of the outstanding balance when you refinance, capped at AED 10,000 total. That cap applies for the whole term. It does not expire at year 3, which is a common misreading. So if you take a 5-year fix and want to switch at year 4, whether you pay anything is set by your facility agreement, and many lenders waive it once the fix has ended.
Islamic fixed rate mortgages
Islamic home finance products in the UAE use a profit-rate structure (typically diminishing musharaka or murabaha) rather than interest, but the payment mechanics look very similar to a conventional mortgage. The profit rate is fixed for an introductory period, then linked to EIBOR plus a profit margin for the remainder.
Islamic headline profit rates sit right alongside conventional intro rates, and at the top of the market they now undercut them. The lowest Islamic rate is Sharjah Islamic Bank at 3.75%, just under the lowest conventional rate of 3.78% from Arab Bank, so the two structures are priced within a small margin of each other. Some Islamic products also carry slightly higher reversion margins. Run the total-cost calculation across the full term, not just the intro period, to make a like-for-like comparison. Our Islamic vs conventional mortgage guide covers this in full detail with a worked example.
What affects the rate you actually get
Published rates are best-case figures. The rate a bank offers you depends on several factors:
- Employer category. Government and semi-government employees often get the best published rates. Private-sector employees at large listed companies are next. Small or unverified employers attract higher rates or lower LTV caps.
- Salary level. Every bank sets its own minimum salary, and the threshold differs by product. Higher earners are often quoted better pricing, so ask each lender where its bands sit before you apply.
- Loan-to-value. Borrowers putting down 30% or more often access slightly better rates than the 20%-deposit headline.
- Credit score. The Al Etihad Credit Bureau (AECB) score affects approval likelihood and sometimes rate. A score above 600 generally gets the standard rate; lower scores can push the margin up.
- Salary transfer. Some banks, particularly ADCB and Emirates NBD, require you to transfer your salary to their account for the best rate. If you do not want to do this, check the rate without salary transfer.
How to get the best fixed rate mortgage in the UAE
The single best action you can take is to compare across lenders before committing, not just within one bank. Banks do not volunteer that a competitor has a better rate. A few practical steps:
- Get a pre-approval first. A mortgage pre-approval letter (typically valid for 60 to 90 days) locks in a rate indication while you search for a property and lets you negotiate from a position of certainty. See our pre-approval step-by-step guide.
- Compare the reversion margin, not just the intro rate. Use the full-term cost calculator below the comparison table on the rates page to model what each mortgage costs over 10 and 25 years.
- Check Islamic options even if you are not Muslim. NBF and DIB Islamic products are open to all nationalities and UAE residents, and the profit rates are competitive.
- Ask about rate matching. Some banks, particularly Emirates NBD and ADCB, will match a competitor offer in writing if you bring them a better rate letter. This is not guaranteed but worth asking.
- Use a broker for rate access you cannot get direct. Mortgage brokers sometimes have access to preferential rates not on a bank's public website. Our mortgage broker guide explains when using a broker adds value.
Cost comparison: the same loan at different fixed rates
Here is a AED 1,600,000 loan over 25 years (the 80% LTV on a AED 2,000,000 property) at the introductory rates available from the main lenders. The total interest column covers the full 25-year term assuming the introductory rate holds. In practice, after the fixed period you pay the reversion rate, which is higher. The table shows intro-period costs only as a starting reference.
| Bank / product | Intro rate | Monthly payment | Total repaid (25 yr at intro rate) |
|---|---|---|---|
| Sharjah Islamic Bank | 3.75% | AED 8,226 | AED 2,467,830 |
| Emirates NBD | 3.89% | AED 8,349 | AED 2,504,554 |
| DIB Islamic | 3.95% | AED 8,401 | AED 2,520,384 |
| ADIB Islamic | 3.99% | AED 8,437 | AED 2,530,967 |
| FAB | 3.99% | AED 8,437 | AED 2,530,967 |
| HSBC Conventional (Private and Premier tier) | 4.05% | AED 8,490 | AED 2,546,887 |
| ADCB | 4.13% | AED 8,561 | AED 2,568,198 |
| Standard Chartered Conventional | 4.67% | AED 8,704 | AED 2,611,105 |
| NBF Islamic (June 2026 figure, not re-verified) | 4.25% | AED 9,113 | AED 2,733,803 |
AED 1,600,000 loan, 25-year term, reducing-balance amortisation. Monthly payments and totals are hypothetical projections if the intro rate held for the full term. In practice you pay the reversion rate (EIBOR + margin) after the fixed period ends. Source: MortgageCompare.ae calculator.
The monthly payment gap between the lowest and highest rates in the table is AED 887 per month on a AED 1.6M loan, which adds up to AED 10,644 per year. Over 3 years at the introductory rate alone, choosing a lower rate saves around AED 31,900 compared to the highest rate in the table. Use the mortgage calculator to run your own numbers.
Frequently asked questions
What is the best fixed rate mortgage in the UAE in 2026?
The lowest fixed introductory rate for conventional mortgages is 3.78% from Arab Bank, and for Islamic finance it is 3.75% from Sharjah Islamic Bank. These are introductory rates for an initial fixed period, after which you pay EIBOR + the bank's margin. The full rates comparison is on our rates page.
How long are fixed rate mortgages in the UAE?
UAE lenders offer introductory fixed periods of 1, 2, 3, or 5 years. True long-term fixed rates for the full 25-year term are not available. After the fixed period, the mortgage reverts to 3-month EIBOR plus a bank margin agreed at the outset.
What happens when my fixed rate ends in the UAE?
Your mortgage reverts to EIBOR + the margin in your facility agreement. Contracted margins on our tracker run from 1.00% to 1.99%, so reversion rates run from 5.37% to 6.01% at today's EIBOR. You can refinance to a new lender to access another introductory rate. Budget for the early settlement fee when you do: CBUAE caps it at 1% of the outstanding balance or AED 10,000, whichever is lower, for the whole term.
Should I choose a 1-year or 3-year fixed mortgage in the UAE?
A 1-year fix gives the lowest intro rate and maximum flexibility to refinance. A 3-year fix provides payment certainty. With rate cuts possible through 2026, a 1 to 2-year fix is popular among UAE borrowers currently, but a 3-year fix is a reasonable choice if payment certainty matters more to you than flexibility.
Can I fix my mortgage rate in the UAE for the full term?
No. UAE mortgages do not offer full-term fixed rates. The market structure is an introductory fixed period followed by EIBOR + margin. You can roll from one introductory deal to another by refinancing every 1 to 5 years, subject to early exit fee rules for the first 3 years.
Related articles
Compare live fixed rates and check which you qualify for
The table above shows published rates. The eligibility checker shows which banks will approve your specific profile, and at what rate, based on your salary, deposit, and property price.