Published 9 June 2026 · Updated weekly every Monday

Mortgage comparison UAE: how to compare rates across 12 banks

By Fatima Al Rashid, Head of Mortgage Research · 10 min read

What are the mortgage comparison UAE rates this week?

The table below covers every major UAE bank's current headline rate for a standard salaried expat buyer: first residential property, under AED 5M, 80% LTV, AED 15,000 or above monthly salary. All rates are reducing balance. Last verified: 9 June 2026.

Last updated: 9 June 2026. Source: MortgageCompare.ae rate tracker. Rates are reducing balance, for salaried expat residents, first property under AED 5M, 80% LTV, AED 15,000+ monthly salary. EMI calculated at headline rate, 25-year term, AED 1.5M loan. Reversion rates at 3-month EIBOR 3.69% (source: CBUAE). Individual rates may vary.

Which UAE bank has the lowest rate right now?

NBF (National Bank of Fujairah) has the lowest published mortgage rate this week at 3.25% on their Islamic home finance product, fixed for 2 years. That's the rate to beat before looking anywhere else, provided you're open to an Islamic (Sharia-compliant) structure.

On the conventional side, HSBC leads at 3.70% for a 2-year fixed. The 45 basis point gap between NBF and HSBC translates to AED 392 per month on a AED 1.5M loan, or AED 117,600 over 25 years at the fixed rate alone. The actual long-run difference depends on what EIBOR does after the fixed period ends.

ADIB deserves a mention for buyers who want a longer fixed window. Their Islamic rate of 3.59% locks in for 3 years rather than 2. At current EIBOR, the 3-year certainty costs roughly AED 284 more per month than NBF's 2-year rate. Whether that premium is worth 12 months of extra payment certainty is a personal call.

One bank that consistently surprises buyers: Standard Chartered at 4.09% offers a 3-year fixed with a reversion margin of only +1.49%, the same as Emirates NBD at 3.85%. For buyers who prioritise rate certainty over the next 3 years and are willing to pay a slightly higher initial rate, Standard Chartered's total cost over a 5-year window is closer to ADCB and Emirates NBD than the headline gap suggests.

How are these rates verified and updated?

MortgageCompare.ae collects rate data from three independent sources: direct bank rate sheets shared with our team, weekly conversations with mortgage relationship managers at each lender, and CBUAE published rate data for EIBOR. This article updates every Monday morning. 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 3-month plus the bank's contracted margin. 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 this comparison. ADCB's headline is 3.85%, Emirates NBD's is also 3.85%. Identical. But ADCB reverts to EIBOR + 1.39% and Emirates NBD to EIBOR + 1.49%. That 0.10% margin difference costs AED 125/month on a AED 1.5M outstanding balance at current EIBOR — AED 1,500 per year, AED 30,000 over the remaining 20 years after the fixed period. Same headline rate, meaningfully different total cost.

Now look at Mashreq vs Emirates NBD. Both headline at 3.99%. But Mashreq reverts at EIBOR + 1.65% versus Emirates NBD's EIBOR + 1.49%. That 0.16% margin gap costs AED 200/month in the reversion period. Over 20 years: AED 48,000. Same headline, AED 48,000 difference.

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

Reversion payments calculated at EIBOR 3.69%, AED 1.5M outstanding balance, 23 years remaining after 2-year fixed period. Source: MortgageCompare.ae calculator, June 2026.

The difference between NBF's reversion rate (+1.25%) and Ajman Bank's (+1.75%) is AED 468 per month. Over 23 years, that's AED 129,168. 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 relevant comparison is fixed period length: 1 year, 2 years, or 3 years. Here's what that looks like on a AED 1.5M loan at comparable banks.

5-year total: (year 1 payment x 12) + (year 2 payment x 12) + (year 3-5 payment x 36). Reversion payments at current EIBOR 3.69%. Source: MortgageCompare.ae calculator, June 2026.

ADIB's 3-year fixed at 3.59% actually comes out cheaper than NBF's 2-year fixed at 3.25% over a 5-year window, because ADIB's tighter reversion margin kicks in sooner. Standard Chartered, despite the highest headline rate in this table, is the third cheapest over 5 years because of its 3-year fixed length and competitive +1.49% reversion margin.

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 current EIBOR of 3.69%, the reversion rates (4.94% to 5.44%) are substantially 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 (ADIB and Standard Chartered both do). The premium over the 2-year fixed is usually 0.30% to 0.50% in headline rate, which is roughly cost-neutral or better over 5 years given the longer fixed window.

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 in June 2026, 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. Banks charge 0.5% to 1.0% of the loan amount upfront. On a AED 2M loan, the difference between 0.5% (AED 10,000) and 1.0% (AED 20,000) is AED 10,000 in cash you need at closing. Always ask if it can be waived or reduced, especially on loans above AED 1.5M.

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. Several banks including ADCB and Emirates NBD offer their best rates only to customers who transfer their salary to the bank. This is not 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?

NBF at 3.25% Islamic (2-year fixed) leads the market in June 2026. For conventional, HSBC at 3.70% (2-year fixed). Both are for salaried expat residents, first property under AED 5M, 80% LTV. See the live rates page for daily updates.

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 3-month plus the bank's contracted margin. At current EIBOR of 3.69%, reversion rates run from 4.94% to 5.44%. The reversion rate applies for most of the loan's life.

Should I fix my UAE mortgage rate or go variable?

For most buyers in June 2026, 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?

3.25% from NBF (Islamic, 2-year fixed, June 2026). Best conventional: 3.70% from HSBC (2-year fixed). Updated weekly. 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 daily. This comparison table updates every Monday. The live rates page reflects same-day changes.