By Majid Akhbar, Head of Mortgage · Published 9 June 2026 · Updated 19 August 2026 · 10 min read · Rates refreshed September 2026

Mortgage comparison UAE: how to compare rates across UAE banks

What are the mortgage comparison UAE rates this week?

The table below shows each bank's headline rate for a standard salaried expat buyer: first residential property, under AED 5M, 80% LTV. All rates are reducing balance.

Rates are reducing balance, for salaried expat residents, first property under AED 5M, 80% LTV. EMI is calculated at the headline rate over a 25-year term on an AED 1.5M loan. Reversion rates are shown at a 3-month EIBOR of 4.37%, from the reference table dated 22 September 2026, except ADIB and Emirates NBD, which price off the 1-month at 4.02%. Where a bank has not published a fixed period or a margin we can source, the column says so rather than estimating one; EIBOR itself is published by the CBUAE. Sharjah Islamic Bank, Emirates NBD, Dubai Islamic Bank, FAB, ADIB, Mashreq, HSBC and all three Standard Chartered products were read from lender product records in September 2026. ADCB's 4.13% was supplied on 18 August 2026 and is pending a published source, which is why its term and margin are blank. Mashreq's 3.99% is Premium segment pricing; its standard segment runs 4.49% to 4.74%. HSBC's 4.05% is the Private and Premier tier; Advance is 4.05% and Personal Banking 4.55%. NBF's 4.25% is its 5-year bundle offer with salary transfer, read 22 September 2026; the standard offer is 4.35% and the 3-year 4.50%. Three lenders that appeared here in June, Emirates Islamic, RAK Bank and Ajman Bank, have been removed rather than carried forward: we could not re-source their pricing in August, and a stale number under a fresh date is worse than a gap. Individual rates may vary.

Which UAE bank has the lowest rate right now?

Sharjah Islamic Bank holds the lowest headline rate on the table at 3.75%, fixed for 1 year, with no arrangement fee. It's an Islamic product. Until this pricing round that combination didn't exist here, because the sharpest rate in the UAE was conventional and Islamic finance carried a small premium for the structure. That has reversed.

Arab Bank is the cheapest conventional lender we can both source and type, at 3.78% on a 2-year fix. It wants your salary paid into the bank before you get it, and it charges 0.26% to arrange the loan where Sharjah Islamic charges nothing. That's the conventional rate to beat.

Dubai Islamic Bank fixes 3.95% for 3 years, the longest lock at the sharp end of the table. The 6 basis point gap to Emirates NBD is AED 49 a month on an AED 1.5M loan. Read on before you dismiss it: the extra year is worth far more than AED 49.

ADIB matches that 3-year lock at 3.99%, 4 basis points dearer, which is AED 33 a month on an AED 1.5M loan. It also writes terms out to 20 years, and its 4-year fix is priced above its 5-year, so ask for both quotes rather than assuming the shorter lock is cheaper.

National Bank of Fujairah, which used to lead this market, sits at 4.25% on its 5-year bundle offer, down from 4.74% in June. The standard offer is 4.35% and the 3-year 4.50%, and a AED 1,050 pre-approval fee is offset against the arrangement fee later.

How are these rates verified and updated?

MortgageCompare.ae collects rate data from three independent sources: direct bank rate sheets shared with our team, conversations with mortgage relationship managers at each lender, and CBUAE published rate data for EIBOR. This article is updated when bank pricing changes, not on a fixed day of the week, and every figure carries the date it was read. The live rates page reflects same-day changes as banks notify us.

A few important caveats. Published rates are starting points. Banks apply a risk spread based on your AECB credit profile, employer category, LTV and salary transfer status. The rates in the table are for the strongest standard profile. Your personal quote may be higher, and if you're a premium customer, lower. We do not accept payment from banks for rate placement. The table is ordered by headline rate, not commercial relationship. See our methodology page for full sourcing details.

What's the difference between headline and effective rates?

This is the most important thing to understand before comparing any two mortgage offers, and the thing most buyers get wrong.

The headline rate is the initial fixed rate, applying only for 1 to 3 years. After that, every UAE mortgage reverts to EIBOR plus the bank's contracted margin. Most contracts reference the 3-month EIBOR; ADIB and Emirates NBD use the 1-month, currently 15 basis points lower. That reversion rate is what you'll pay for 22 to 24 years of a 25-year term. It is far more important than the headline rate for total cost.

Look at the two ends of this market. Dubai Islamic Bank reverts at 3-month EIBOR + 1.00% and Emirates NBD at 1-month EIBOR + 1.99%. That is 5.37% against 6.01% today, or AED 731 a month on an AED 1.5M balance over 23 years. About AED 8,772 a year. The headline rates on those two products sit 6 basis points apart. The reversion sits 84 apart.

Now look at FAB against Mashreq. Both advertise 3.99%. FAB reverts at EIBOR + 1.50% and Mashreq at EIBOR + 1.75%, so 5.87% against 6.12% today. On the AED 1.5M balance and 23-year remaining term this table models, that is AED 219 a month, or AED 60,444. Identical headline rate.

The reversion margin is the number you should compare first. Then the headline rate. Then the fixed period length.

Reversion payments calculated at EIBOR 4.37%, on an AED 1.5M outstanding balance with 23 years remaining after a 2-year fixed period. Source: MortgageCompare.ae calculator.

The difference between Dubai Islamic Bank's reversion (+1.00%) and Emirates NBD's (+1.99%) is AED 731 per month. Over 23 years, that's AED 201,756. That gap opens up after the fixed period, when most buyers stop paying close attention. Don't let it catch you off guard.

How do fixed and variable rate offers compare?

Every bank in this comparison offers an initial fixed period followed by an EIBOR-linked variable rate. Fully variable products (EIBOR + margin from day one) exist but are uncommon and rarely make sense in a market where fixed-period rates are close to or below EIBOR itself.

The comparison that matters is fixed period length: 1 year, 2 years, or 3 years. Here is what each product actually costs over its first 5 years on an AED 1.5M loan, sorted by total rather than by headline rate.

The 5-year total takes each product's fixed-period payment for its fixed years, then its own contracted reversion payment for the rest of the 5-year window. Reversion payments assume EIBOR holds at its 22 September 2026 reading, an AED 1.5M balance held flat, and a remaining term of 25 years minus the fixed period. Emirates NBD and ADIB revert off the 1-month tenor, every other product here off the 3-month. ADCB is absent because its fixed period and reversion margin are not published, so no honest total can be worked for it. Source: MortgageCompare.ae calculator.

Dubai Islamic Bank finishes cheapest over 5 years at AED 506,808, from the third-lowest headline rate in the table. It holds 3.95% for 3 years where Emirates NBD holds 3.89% for 2, so the year DIB spends still fixed is a year Emirates NBD spends at 5.75%. That one year is worth AED 23,208. Emirates NBD wins the first two years by AED 1,176 and loses the last two by AED 12,168, and finishes AED 34,200 behind.

Now the uncomfortable row. Sharjah Islamic Bank has the sharpest headline number in this article and the most expensive 5 years in this table: AED 550,176, which is AED 43,368 more than Dubai Islamic Bank. It fixes for 12 months, then sits on 3-month EIBOR + 1.75% for the next four years. A rate you hold for a year is a discount on 4% of a 25-year term.

That is the whole argument for reading the reversion column first. The cheapest headline rate finished last, the third cheapest finished first, and nothing about the market changed in between.

The lesson: if you're comparing across fixed period lengths, always run a 5-year total cost analysis, not just the monthly EMI at the headline rate. The mortgage calculator lets you model both periods separately.

Who should fix and who should stay variable?

Fix for 2 years if: you're buying to live in the property for 5 or more years, you want payment certainty while the EIBOR outlook is unclear, or you think rates are more likely to rise than fall. At today's EIBOR the reversion rates we can source (4.91% to 5.75%) sit well above today's fixed rates. Every month you're fixed is a month you're not paying those higher reversion rates.

Fix for 3 years if: you want extra certainty and the 3-year product has a competitive reversion margin (Dubai Islamic Bank does, at +1.00%, the thinnest we can source). You pay for the longer window in the headline rate, and on the numbers above you get it back with change.

Shorter fix or variable if: you're planning to sell or refinance within 18 to 24 months, you have strong conviction that EIBOR will fall significantly (reducing your reversion rate when you get there), or you want maximum flexibility without an early settlement penalty during the fixed period.

For most buyers right now, the 2-year fixed is the default sensible choice. The 2026 rate environment is stable but uncertain. A 2-year window gives you time to see what happens with US Federal Reserve decisions before you're exposed to the full variable rate.

Four things every UAE mortgage comparison must include

Most online mortgage comparisons in the UAE stop at the headline rate. Here's what a complete comparison actually needs.

1. The reversion margin. As explained above, this is the EIBOR margin you'll pay for most of the loan. Check it before anything else. A bank with a higher headline rate and a tighter reversion margin often wins on total cost.

2. The processing fee. Expect 0% to 1% of the loan amount, payable upfront. On a AED 2M loan that is the difference between nothing at all and AED 20,000 in cash at closing. Some banks drop it altogether to win the file, and a broker will usually argue the rest down, so ask before you budget for the top of the band.

3. The fixed period length. A 1-year fixed and a 3-year fixed at the same headline rate have meaningfully different total costs depending on what EIBOR does. Longer fixed periods reduce reversion rate risk. Shorter periods give more flexibility to refinance.

4. Salary transfer requirement. Emirates NBD, FAB, ADIB and Dubai Islamic Bank all reserve their best pricing for customers who transfer their salary to the bank. HSBC and Standard Chartered don't ask for it, and price higher for the freedom. It isn't always a dealbreaker, but it's a banking relationship commitment that affects flexibility later. Factor it in before you commit.

Frequently asked questions

Which UAE bank has the lowest mortgage rate right now?

Sharjah Islamic Bank at 3.75%, an Islamic product fixed for 1 year with no arrangement fee. The conventional answer is Arab Bank at 3.78% on a 2-year fix with salary transfer. Dubai Islamic Bank sits at 3.95% and holds it for 3 years. All are for salaried expat residents, first property under AED 5M, 80% LTV. See the live rates page for the current figures.

How do I compare UAE mortgage rates properly?

Compare the reversion margin first (the EIBOR margin you'll pay for most of the loan), then the headline rate, then the fixed period length, then the processing fee. A bank with a lower headline rate and a higher reversion margin can cost more over 25 years than the reverse.

What is the difference between headline and effective mortgage rates?

The headline rate applies only during the initial fixed period (1 to 3 years). After that, your rate becomes EIBOR plus the bank's contracted margin. At today's EIBOR the reversion rates we can source run from 4.91% to 5.75%. The reversion rate applies for most of the loan's life.

Should I fix my UAE mortgage rate or go variable?

For most buyers today, a 2-year fixed makes sense: it locks in today's rates while the EIBOR outlook remains uncertain. Buyers planning to sell within 18 months, or who expect a significant EIBOR fall, may prefer a shorter fix or variable product.

What is the best mortgage rate available in the UAE today?

3.75% from Sharjah Islamic Bank on a 1-year Islamic fix, and 3.78% from Arab Bank on a 2-year conventional fix with salary transfer. Cheapest over the first 5 years is a different question, and the reversion margin answers it: Dubai Islamic Bank at 3.95% on a 3-year fix. Check the live rates page for the most current figures.

How often do UAE mortgage rates change?

Banks revise headline rates 4 to 8 times per year, typically after CBUAE base rate decisions. EIBOR moves with money market conditions. This comparison is rebuilt whenever bank pricing changes rather than on a set day. The live rates page reflects same-day changes.