By Majid Akhbar, Head of Mortgage · Published 25 March 2026 · Updated 19 August 2026

Best mortgage rates in the UAE: bank by bank comparison

By the MortgageCompare.ae Editorial Team · 13 min read

The best mortgage rate in the UAE right now is 3.75%, a reducing Islamic profit rate from Sharjah Islamic Bank (MortgageCompare.ae rate tracker). If you want a conventional loan, Emirates NBD leads at 3.89% reducing (MortgageCompare.ae rate tracker). Those are the two numbers most people searching for the best mortgage rates in the UAE actually want, so there they are.

But the cheapest headline rate and the cheapest mortgage are not the same thing. Processing fees, the length of the fixed period, and the rate your mortgage reverts to after that period all change the true cost. We track published rates from major UAE banks and update the data when pricing changes. This article gives you every rate, bank by bank, with the context you need to pick the right mortgage rather than just the cheapest number on a screen.

Two benchmark rates drive everything that follows. The 3-month EIBOR is 3.91% and the CBUAE base rate is 3.65%. Nearly every variable mortgage in the country reverts to EIBOR plus a fixed margin after the initial period, so those two numbers set the floor for what you'll pay long term.

Every UAE mortgage rate compared

This is the full comparison table. We've ranked products by initial rate within each category. These rates are for employed residents on a standard purchase (80% LTV, first property under AED 5 million). Your individual quote may differ based on LTV, employer category, credit history, and whether you transfer your salary to the lending bank.

Source: MortgageCompare.ae rate tracker. All rates are reducing rates for employed residents, first property under AED 5M, 80% LTV. Rates marked indicative are not confirmed from a named, dated bank page, so they are not used for any best or lowest claim. Mashreq's 3.99% is its Premium segment price; standard pricing runs 4.49% to 4.74%. HSBC prices by relationship tier: Private and Premier 4.05%, Advance 4.25%, Personal 4.55%. Minimum salary thresholds vary by bank and product, so confirm the current figure with the lender. Actual rates depend on individual profile. Reversion rates calculated using 3-month EIBOR. See our live rates page for daily updates.

The spread between the cheapest (Sharjah Islamic Bank at 3.75%) and the most expensive product in this table (NBF Islamic at 4.74%) is 0.99 percentage points. On a AED 1,600,000 loan over 25 years, that gap works out to roughly AED 887 per month (MortgageCompare.ae calculator). That is AED 10,639 per year, or AED 266,000 over the life of the loan. Choosing the right bank is not a minor detail.

A few things jump out. Conventional and Islamic products are tightly clustered at the top of the table right now, with the cheapest Islamic product just edging the cheapest conventional one. That matters even if you did not set out looking for Shariah-compliant finance, because any UAE resident can apply for Islamic products regardless of faith. I'd encourage everyone to compare across both categories.

Best Islamic mortgage rates in the UAE

Islamic home finance in the UAE uses structures where the bank buys the property (or a share of it) and sells it back to you at a profit, or leases it to you until the balance is paid. The economics feel similar to a conventional mortgage from the borrower's perspective, but the legal structure is different. Rates are called "profit rates" rather than interest rates, and every product must be approved by the bank's Shariah board (AAOIFI standards).

Dubai Islamic Bank: 3.95% reducing

DIB's 3.95% is a 1-year fixed reducing profit rate (MortgageCompare.ae rate tracker). Sharjah Islamic Bank undercuts it at 3.75%, so DIB is no longer the outright cheapest Islamic option, but it is the cheapest of the large Islamic banks. After the fixed period, it reverts to 3-month EIBOR plus a 1.35% margin, which at today's EIBOR of 3.91% would be 5.26%. DIB has the largest branch network of any Islamic bank in the UAE and consistently fast processing.

DIB requires a valid UAE residence visa and at least six months in your current role. Maximum LTV is 80% for a first property under AED 5 million (CBUAE rules). Arrangement fees across the market run from 0% to 1% of the finance amount, and the DIB product on our tracker carries none at all. Where a fee does apply it is negotiable, and a broker can usually get it cut, especially if you agree to salary transfer.

Our assessment: this is the strongest mix of price and scale on the Islamic side. The 1-year fixed period keeps the entry rate low, and the EIBOR + 1.35% reversion margin is competitive for Shariah-compliant finance. Quote Sharjah Islamic Bank against it before you sign.

ADIB Home Finance: 3.99% reducing

ADIB offers a 3-year fixed at 3.99% (MortgageCompare.ae rate tracker). That extra year of rate certainty is valuable. The reversion margin of EIBOR + 1.45% is in line with DIB's, and three years of knowing exactly what you'll pay each month has a real value that is hard to quantify in a spreadsheet. For borrowers who prioritize stability over the lowest profit rate, ADIB's product is worth comparing.

Emirates Islamic and NBF Islamic

Emirates Islamic comes in at 4.20% for a 2-year fixed (EIBOR + 1.50% reversion). NBF Islamic last published 4.74% for a 2-year fixed (EIBOR + 1.25% reversion), a June 2026 figure we have not been able to re-verify, so treat it as historic and ask the bank what it prices at today. Emirates Islamic benefits from the Emirates NBD Group's infrastructure and online banking tools. NBF, once the cheapest in the market, now sits at the top of the Islamic field on price.

Best conventional mortgage rates in the UAE

Conventional mortgages are straightforward interest-bearing loans. The cheapest conventional rate currently sits just above the cheapest Islamic product, though conventional products often come with tighter reversion margins and more flexible terms.

Standard Chartered: 4.29% reducing

Standard Chartered's MortgageOne now sits at 4.29% (MortgageCompare.ae rate tracker), well off the front of the conventional field. What it still has is a 3-year fixed period reverting to EIBOR + 1.49%, and no salary-transfer requirement. If you cannot or will not move your salary account, that second point can be worth more than the headline gap.

HSBC: 4.05% reducing

HSBC's 4.05% 2-year fixed is a Private and Premier tier price. Advance customers are quoted 4.25% and Personal customers 4.55%, so check your tier before you compare. It is not the cheapest conventional rate, but the reversion margin of EIBOR + 1.29% is the tightest of any bank we track. That reversion margin matters more than most buyers realize, because a AED 2 million mortgage at 80% LTV runs for 25 years and you'll spend most of that time at the reversion rate, not the introductory rate.

HSBC's mortgage team operates out of their wealth centre branches in Dubai (Emirates Towers, DIFC) and Abu Dhabi (Al Maryah Island). If you already bank with HSBC, you'll typically get a further rate discount or a processing fee waiver. We've seen existing HSBC customers offered better pricing on conventional products with salary transfer commitments.

ADCB: 4.13% reducing

ADCB offers a 1-year fixed at 4.13% with a reversion to EIBOR + 1.39% (MortgageCompare.ae rate tracker). The 1-year fixed period is short and the rate is no longer competitive on price, but ADCB compensates with competitive processing and one of the smoother application experiences among UAE banks. Their online tracking portal for mortgage applications is genuinely useful. Good option for Abu Dhabi-based buyers who want a local bank with strong in-emirate branch support.

Emirates NBD: 3.89% reducing

Emirates NBD's conventional product sits at 3.89% for a 2-year fixed, reverting to EIBOR + 1.49% (MortgageCompare.ae rate tracker). That is the cheapest conventional rate we can source, and Emirates NBD has the largest retail banking customer base in the UAE, which means they process more mortgage applications than almost anyone and their underwriting team moves quickly. If your salary is already with Emirates NBD, they can often turn around a pre-approval in 3 to 5 business days.

Standard Chartered: the 3-year play

Standard Chartered no longer leads the conventional table, but its 3-year fixed period (EIBOR + 1.49% reversion) is still worth a look if you value payment certainty (MortgageCompare.ae rate tracker). Three years of fixed payments removes a lot of guesswork in an environment where EIBOR could move in either direction. Price it against ADIB, whose 3-year Islamic fix at 3.99% buys the same certainty for less.

RAK Bank, FAB, and Mashreq

RAK Bank at an indicative 3.89% accepts the lowest minimum salary in the conventional space (AED 10,000), making it the go-to for lower-income borrowers. FAB at 3.99% and Mashreq at 3.99% for its Premium segment round out the conventional field, though standard Mashreq pricing runs 4.49% to 4.74%. Mashreq also accepts AED 12,000 minimum salary. All rates per MortgageCompare.ae rate tracker. For a full side-by-side comparison with live pricing, check the rates page.

Fixed vs variable: what makes sense in 2026

This question depends on where you think rates are headed. Here is what we know for certain and what we do not.

The 3-month EIBOR is 3.91%. EIBOR closely tracks the CBUAE base rate, which tracks the US Federal Reserve's policy rate because the UAE dirham is pegged to the US dollar. The CBUAE base rate is 3.65%. If the Fed cuts rates further, EIBOR will follow. If the Fed holds or reverses, so will EIBOR.

What we don't know is the pace or timing of future moves. Anyone claiming certainty about rate direction over the next 12 to 24 months is guessing. Markets expect some further easing, but that expectation has shifted multiple times in the past year alone.

Here is my take. For most borrowers taking a 20 to 25 year mortgage, the difference between a 1-year fixed and a 3-year fixed is not large in terms of monthly payment, but it is large in terms of peace of mind. Locking in at 3.75% to 3.99% for two or three years gives you a clear planning window. If EIBOR falls significantly during that time, you can refinance at the end of your fixed period. If it rises, you are protected.

Variable rates (no initial fixed period, just EIBOR + margin from day one) are less common in the UAE market right now because banks are competing on fixed-period introductory rates. Some banks offer them for borrowers who specifically ask, typically at EIBOR + 1.25% to 1.75%, which at today's EIBOR works out to 5.16% to 5.66%. That is immediately higher than every fixed-rate product in our table above. Unless you have a strong conviction that EIBOR is about to fall sharply, the fixed-period products offer better value today.

Reducing rate vs flat rate: the number that actually matters

Every rate in this article is a reducing rate, meaning the bank calculates your profit or interest on the declining loan balance. As you repay principal each month, the amount of profit/interest you owe decreases. This is the standard structure at major UAE banks.

A flat rate calculates profit/interest on the original loan balance for the entire term. A 3.00% flat rate and a 3.00% reducing rate are not the same thing at all. The flat rate costs significantly more because you pay profit on money you have already repaid. As a rough rule, a flat rate of 3.00% works out to roughly 5.5% to 6.0% on a reducing basis over 25 years.

If a bank or broker quotes you a flat rate, convert it to a reducing equivalent before comparing. Or just compare repayment amounts directly using our mortgage calculator. Some smaller lenders and off-plan developer finance arrangements still use flat rates. Always ask: "Is this a reducing rate or a flat rate?" before you compare numbers.

What actually determines your mortgage rate

The rates in the table above are "best available" rates, meaning they apply to borrowers with the strongest profiles. Your personal rate could be higher. Here is what moves the needle.

Loan-to-value (LTV)

Lower LTV means lower risk for the bank, which means a better rate for you. Borrowing 60% of the property value will typically get you 0.1% to 0.3% below the published rate for 80% LTV. The CBUAE caps LTV at 80% for expats on a first property under AED 5 million and 70% for properties above AED 5 million (CBUAE Circular 31/2013). If you can afford a larger deposit, the rate improvement often makes it worthwhile. Our eligibility checker shows you the LTV bands for your specific situation.

Salary transfer

Moving your salary to the lending bank is the single most effective way to reduce your rate. Banks price salary transfer customers 0.1% to 0.25% lower because it reduces default risk (the bank can see your income in real time and debit your payment automatically). If you are comfortable switching your salary account, always negotiate this into your rate.

Employer category

Banks maintain internal employer lists, usually graded A, B, and C. Government entities, semi-government organisations, multinational corporations, and free zone companies in certain categories get A-grade treatment, which means better rates and faster processing. SMEs and newer companies may be graded B or C, meaning a slightly higher rate and stricter documentation. You cannot change your employer grade, but it helps to know it exists so you can manage your expectations.

Al Etihad Credit Bureau score

Every UAE bank pulls your credit report from Al Etihad Credit Bureau (AECB). Late payments, defaulted credit cards, or bounced cheques will hurt your score and either increase your rate or disqualify you entirely. If you are planning to apply in the next six months, check your AECB report now and resolve any issues before approaching a bank. A clean report is non-negotiable.

Debt burden ratio (DBR)

The CBUAE caps total monthly debt repayments at 50% of gross income for expats and UAE nationals alike (CBUAE Circular 31/2013). This includes the proposed mortgage, car loans, personal loans, and 5% of every credit card limit you hold. If you are close to the limit, banks may offer a smaller loan at a higher rate, or decline the application. Close unused credit cards and reduce card limits before applying. I've told this to hundreds of applicants over the years, and it remains the single easiest fix for DBR problems.

How to get a lower rate than what's advertised

Published rates are starting points for negotiation, not final offers. Banks have discretion to adjust pricing based on your profile and how badly they want your business that quarter. Here is a straightforward process that works.

1. Get pre-approvals from three banks. Apply to your top three choices from the table above. Each bank will issue a pre-approval letter with a specific rate. This costs nothing and does not commit you.
2. Share competing offers. Take Bank A's pre-approval to Bank B and ask if they can match or beat it. This is not rude. Banks expect it. Mortgage officers have rate discretion and will use it to avoid losing a deal.
3. Offer salary transfer. If you are willing to move your salary account, say so. This is the strongest lever you have. Combine it with a competing offer and you are in a very strong position.
4. Negotiate the processing fee too. The rate gets all the attention, but the processing fee (0% to 1% of the loan) is often easier to move. On a AED 1,600,000 loan, halving a full 1% fee saves you AED 8,000 in a single conversation, and getting it waived saves AED 16,000. A mortgage broker runs that negotiation as a matter of routine. Some banks waive it entirely for loans above AED 2,000,000.
5. Time it well. Banks have quarterly targets. Applying in the last month of a quarter (March, June, September, December) sometimes yields better offers as mortgage officers push to hit numbers.

We've seen borrowers get rates 0.15% to 0.30% below published prices through this process. On a AED 1,600,000 loan over 25 years, 0.25% lower saves roughly AED 220 per month, which is AED 2,650 per year. Worth the effort of a few phone calls.

Monthly payment comparison: what these rates actually cost

Rates are abstract. Monthly payments are real. Here is what you'd pay each month on a AED 1,600,000 loan (80% LTV on a AED 2,000,000 property) over 25 years at different rates from our comparison table.

Calculated using the MortgageCompare.ae mortgage calculator. Assumes fixed rate for full 25-year term for illustration. Actual payments will change when the rate reverts to EIBOR + margin after the initial fixed period. Figures rounded to nearest AED 10 (monthly) and AED 1,000 (total).

The difference between Sharjah Islamic Bank's 3.75% and NBF Islamic's 4.74% is AED 887 per month. Over 25 years, that is AED 266,000 in additional profit/interest. But remember: these calculations assume the initial rate lasts the full term, which it does not. After the fixed period ends, payments will adjust based on EIBOR. The initial rate comparison tells you where to start; the reversion margin comparison tells you where you'll end up.

Who these rates are for (and who they are not for)

Every rate in this article assumes a specific buyer profile: employed UAE resident, purchasing a first property under AED 5 million, at 80% LTV. Your rate will differ if your situation is different.

Self-employed borrowers typically pay 0.25% to 0.50% above the rates shown here because banks apply a risk premium for income variability. Max LTV drops to 65% to 70%. You will need a trade licence active for at least two years plus two years of audited financials. More detail in our first-time buyer guide.

Non-residents face higher rates still and LTV caps of 50% to 60%. Only a handful of banks offer non-resident products. If you are buying from abroad, expect to pay 0.50% to 1.00% above the rates shown above, and expect the process to take longer.

Second property purchases trigger lower LTV caps (60% for expats, 65% for nationals per CBUAE rules) and sometimes a small rate premium. The higher deposit requirement is the bigger impact.

If you are unsure whether you qualify, run a quick check on our eligibility page. It takes under two minutes and tells you which LTV bands and products are available for your profile.

Costs beyond the rate

Your mortgage rate determines your monthly payment. But the total cost of buying a property includes fees on top of that payment. Budget roughly 7% to 8% of the property price for upfront costs: the 4% DLD transfer fee, 0.25% mortgage registration, bank processing (0% to 1% of the loan, and negotiable), property valuation (AED 2,500 to 3,500), life insurance, property insurance, and real estate agent commission at 2% plus VAT.

For a AED 2 million property at 80% LTV, your total cash requirement (deposit plus fees) is approximately AED 560,000 (MortgageCompare.ae fee calculator). We have a full line-by-line breakdown with worked examples at three price points in our costs and fees guide.

If you are still deciding between buying and renting, our rent or buy analysis compares the two options across four Dubai areas with real 2026 numbers.

UAE home loan and mortgage: the same thing, different name

Searching for "home loan UAE" and "mortgage UAE" returns the same products from the same banks. The two terms are used interchangeably in the UAE market. Banks sometimes label their products "home finance" (especially Islamic banks), "home loan" (HSBC, Emirates NBD), or "residential mortgage" (Standard Chartered), but these are branding preferences, not structural differences. The CBUAE regulations, LTV caps, DBR limits, and documentation requirements apply equally to all of them.

The one distinction worth knowing: Islamic banks call their product "home finance" rather than a home loan or mortgage, because the legal structure is a profit-sharing or leasing arrangement rather than an interest-bearing loan. The practical experience as a borrower (applying, submitting documents, getting a pre-approval, paying monthly) is functionally identical. When this article compares home loan rates in the UAE, it includes Islamic home finance products alongside conventional mortgages.

If you see a UAE bank advertising "home loan rates from 3.89%" and another advertising "mortgage rates from 3.89%", those two descriptions are pointing at the same product shelf. Compare by actual rate, fixed period, reversion margin and processing fee, not by what the bank has chosen to call the product type.

UAE home loan comparison: what to look at beyond the rate

A home loan comparison in the UAE is not complete if it stops at the headline rate. These are the five numbers that together tell you the true cost of each product:

1. Initial rate. What you pay during the fixed period. This is what banks advertise and what most comparison tables show. It matters, but it is only part of the picture.
2. Fixed period length. A 3.89% rate for 1 year can cost more over 5 years than a 3.99% rate fixed for 3 years, because after year one you revert to EIBOR plus margin. Always compare rates within the same fixed period length, or model the full 5-year cost across scenarios.
3. EIBOR margin at reversion. This is the number most buyers ignore and the one that matters most for total cost. After your fixed period, your rate is EIBOR plus this margin for the remaining 20+ years of the loan. The difference between a 1.25% margin and a 1.75% margin on a AED 1.5M outstanding balance is approximately AED 420 per month. Over 20 years, that is AED 101,000.
4. Processing fee. Ranges from 0% (promotional waiver) to 1% of the loan amount. On AED 1.5M, the spread from best to worst is AED 15,000. A mortgage broker can often talk it down. This is a one-time cost, but it should sit alongside the rate comparison.
5. Early settlement terms. The CBUAE caps the early settlement fee at 1% of outstanding balance for variable-rate products. Some banks apply the cap generously (settlement fee = 1% with no minimum holding period); others have additional conditions. If you are likely to sell or refinance within 5 years, read this clause carefully.

The mortgage calculator lets you model two scenarios side by side, including both the fixed-period payment and the estimated reversion payment. Use it to move beyond rate comparison to actual cost comparison before you choose.

Best UAE home loan by situation: a quick guide

Different buyer situations call for different prioritisation criteria. Here is a fast guide:

For a profile-specific recommendation, the eligibility checker matches your exact details against the full panel and surfaces the banks most likely to approve you at the best terms.

Frequently asked questions

What is the best mortgage rate in the UAE right now?

Sharjah Islamic Bank's 3.75% reducing profit rate is the lowest rate available of any kind. For a conventional loan, Emirates NBD leads at 3.89% reducing. Both are initial fixed rates for employed residents, first property, 80% LTV. See the full comparison table above for all banks.

Are Islamic mortgage rates lower than conventional rates?

At the top of the market right now, yes. The cheapest Islamic profit rate (3.75%) sits just below the cheapest conventional rate (3.89%). The gap is small and moves month to month, so the ranking can flip again. Any UAE resident can apply regardless of religion. The legal structure differs (banks use profit-sharing or leasing models instead of interest), but the monthly payment mechanics feel similar to the borrower.

Should I fix my rate or go variable?

With EIBOR at 3.91% and fixed rates available below 4%, a 2 to 3 year fixed period gives you certainty at a historically reasonable level. Pure variable rates (EIBOR + margin from day one) currently start around 5.16% based on typical margins, which is higher than every fixed-rate product we track. Fixing for 2 to 3 years is the stronger play in the current environment.

What is the minimum deposit for a UAE mortgage?

For expats buying a first property under AED 5 million, the CBUAE requires at least 20% of the property value as a deposit (80% max LTV). UAE nationals get 85% LTV on a first property up to AED 5M. For properties above AED 5 million, expats need 30% and nationals need 25%. These limits are set by CBUAE Circular 31/2013.

What is EIBOR and why does it matter?

EIBOR is the Emirates Interbank Offered Rate. The 3-month EIBOR, currently at 3.91%, is the benchmark for most variable and post-fixed-period mortgage pricing in the UAE. Your mortgage rate after any initial fixed period is calculated as EIBOR plus a fixed margin set by your bank (typically 1.25% to 1.75%). When EIBOR moves, your payment moves with it.

Can I negotiate my mortgage rate?

Absolutely. Banks have pricing discretion and expect negotiation, especially for borrowers with strong profiles. The tactic that works best: get pre-approvals from two or three banks, then share the competing offers. Combine that with a salary transfer commitment and you are in a strong position. We've seen borrowers achieve 0.15% to 0.30% below published rates through this approach.

What happens when my fixed rate period ends?

Your rate reverts to 3-month EIBOR plus your bank's margin. For example, a product reverting at EIBOR + 1.25%, at today's EIBOR of 3.91% would be 5.16%. You can refinance to another bank's introductory rate at that point, though you will pay the early settlement fee (capped at 1% of outstanding balance for variable-rate products by the CBUAE), new bank processing fees, and DLD re-registration costs. Our mortgage process guide covers the full refinancing steps.

What to do next

You now have every rate from every major UAE bank, the context behind those numbers, and a clear view of what actually drives your personal rate. If I could give you one piece of advice from years of comparing these products: do not pick the bank with the lowest headline rate and stop there. Look at the reversion margin, the fixed period length, the processing fee, and whether the bank works well for your specific profile.

Start by checking your eligibility to confirm your LTV band and borrowing capacity. Then compare products side by side on our rates page, which updates daily. Apply to your top three, negotiate with the offers in hand, and save yourself thousands over the life of the loan.

The best rate on the market today is Sharjah Islamic Bank's 3.75% Islamic profit rate, with Emirates NBD's 3.89% leading the conventional side (MortgageCompare.ae rate tracker). If your profile qualifies, those are the two to beat. Go get your quotes.