UAE mortgage comparison calculator: side-by-side bank costs in 2026
- Best UAE mortgage rates in June 2026 range from 3.78% to 4.49% on conventional fixed products (source: bank rate sheets, June 2026), a spread that adds over AED 170,000 in total interest on a AED 1.5M, 25-year loan.
- Islamic profit rates from ADIB, DIB and Emirates Islamic start from 3.90% in June 2026, just above the best conventional fixed rate of 3.78% (source: bank rate sheets, June 2026).
- A 0.25 percentage point rate difference on AED 1.5M over 25 years changes monthly payments by around AED 213 and total interest paid by roughly AED 63,900.
A UAE mortgage comparison calculator puts two or more bank offers side by side on the same loan amount and term, showing the monthly payment, total interest and true cost for each. In June 2026, the spread between the cheapest and most expensive fixed-rate UAE mortgages is worth over AED 100,000 in total interest on a AED 1.5M loan (source: PMT formula, bank rate sheets, June 2026). Getting this comparison right before you apply can save you more than most renovation budgets.
TL;DR: the verdict
- Best conventional fixed rate in June 2026: 3.78% to 3.99% (source: bank rate sheets, June 2026).
- Best Islamic profit rate in June 2026: from 3.90% (ADIB, DIB, Emirates Islamic; source: bank rate sheets, June 2026).
- Rate spread (lowest to highest fixed): approximately 0.71 percentage points, worth over AED 170,000 in total interest on a AED 1.5M, 25-year loan.
- Compare the revert variable rate (EIBOR + margin) as well as the fixed period: this matters more for the 20+ year variable portion of the mortgage.
- Use the live rate comparison to get today’s figures from 20+ UAE banks.
What a UAE mortgage comparison calculator actually compares
Most people compare the headline fixed rate. That is a start, but it misses at least half of what matters. A UAE mortgage has two phases:
- The fixed period (typically 1 to 5 years). Your rate is locked. Monthly payment is predictable. This is the rate everyone quotes first.
- The revert period (the remaining 20 to 24 years). Your rate switches to EIBOR plus the bank’s margin. Monthly payments move with EIBOR. This period covers the vast majority of the loan life.
A bank offering a 3.99% 5-year fix with a 2.25% margin over EIBOR will cost you more over 25 years than a bank offering a 4.25% 5-year fix with a 1.25% EIBOR margin, if current EIBOR levels persist. The comparison calculator has to model both phases.
The other variable: processing fee. Some banks charge 0.5% of the loan, others 1%. On AED 1.5M that is the difference between AED 7,500 and AED 15,000 upfront. See the rates comparison for the full breakdown across banks.
Monthly payments compared: same loan, different rates
The table below shows monthly payments on a AED 1.5M mortgage over 25 years at the range of fixed rates available from UAE banks in June 2026. Source: PMT formula, bank rate sheets, June 2026.
| Annual rate | Monthly payment (AED 1.5M, 25 yrs) | Total interest (25 yrs) | Vs best rate (AED) |
|---|---|---|---|
| 3.78% (best conventional) | ~AED 7,740 | ~AED 820,900 | Base |
| 3.90% (best Islamic) | ~AED 7,830 | ~AED 850,500 | +AED 29,500 |
| 3.99% | ~AED 7,910 | ~AED 872,800 | +AED 51,800 |
| 4.25% | ~AED 8,130 | ~AED 937,800 | +AED 116,900 |
| 4.49% | ~AED 8,330 | ~AED 998,700 | +AED 177,700 |
| 4.99% | ~AED 8,760 | ~AED 1,128,000 | +AED 307,100 |
Source: PMT formula. Figures rounded to nearest AED 100 (monthly) and AED 100 (total). Assumes 25-year term at the same fixed rate throughout for illustrative comparison. Real products combine a fixed period and a revert rate.
The gap between the best conventional rate (3.78%) and a typical mid-market offer (4.25%) is over AED 116,000 in total interest over the full term. The full 3.78% to 4.49% conventional spread costs roughly AED 177,700 more over 25 years.
How much does 0.25% matter?
On a AED 1.5M, 25-year loan, each 0.25 percentage point increase in rate adds approximately:
- AED 200 to AED 215 per month to the payment.
- AED 60,000 to AED 65,000 in total interest over 25 years.
That is AED 60,000 per 0.25 point, or roughly AED 240,000 per full percentage point. Rate comparison is not a minor exercise.
Fixed vs variable: which is cheaper now?
With 3-month EIBOR at 3.85% (CBUAE, June 2026) and bank margins typically running 1.25% to 2.50%, the current all-in variable rate is 5.10% to 6.35%. Against 5-year fixed rates from 3.78% to 4.49%, fixed products are cheaper today. Variable products only win if EIBOR falls significantly from current levels during the loan term.
The EIBOR outlook matters for the comparison. See our EIBOR forecast 2026 and our fixed vs variable guide for the analysis.
Islamic vs conventional: the real comparison
In June 2026, the best Islamic profit rate (3.90% from Dubai Islamic Bank) sits just above the best conventional fixed rate (3.78% from Standard Chartered), a gap of around 0.12 percentage points (source: bank rate sheets, June 2026). The two are close enough that Islamic finance remains genuinely competitive on cost, so the choice usually comes down to structure preference and fees rather than headline rate.
The structural differences to factor in when comparing:
- Islamic mortgages use Ijara or Diminishing Musharaka structures, not a loan with interest. The monthly payment in practice is similar to conventional.
- Early settlement is more complex in Islamic products, and the fees for exiting are calculated differently.
- The profit rate comparison must be like-for-like: both the initial profit rate period and the revert rate (typically EIBOR-linked for Islamic products too).
For a full breakdown, see our Islamic vs conventional mortgage comparison.
What a good UAE mortgage comparison should include
When using any comparison tool, make sure it shows you:
- Fixed period rate and term (1-year, 3-year or 5-year fix).
- Revert rate: the EIBOR margin after the fixed period ends.
- Processing fee: typically 0.5% to 1% of the loan, paid upfront.
- Monthly payment during fixed period.
- Monthly payment during variable period (at current EIBOR).
- Total interest over 25 years (projecting both periods).
- Early settlement fee: typically 1% of outstanding balance, capped at 3 months’ interest by CBUAE rules.
Our rate comparison page shows all of these for 20+ UAE banks in one table.
“Why do I keep getting different monthly payment quotes from different banks?”
The formula is the same. The inputs differ. Each bank is quoting you their rate, which differs, and some are quoting a net rate while others are quoting the gross rate inclusive of fees. The processing fee is sometimes rolled into a higher apparent rate (making the monthly look bigger), sometimes quoted separately. The term might differ by a year or two depending on your age.
The cleanest way to compare is to fix the term at 25 years, fix the loan amount, and ask each bank for their rate exclusive of fees. Then use the PMT formula at each rate to get the monthly payment. Add the processing fee separately as a one-off upfront cost. That gives you like-for-like monthly figures, and you can then decide whether the upfront fee saving outweighs a slightly higher rate. Our comparison table does this standardisation for you.
Bottom line
A UAE mortgage comparison calculator should show you the full 25-year cost of each offer, not just the headline fixed rate. In June 2026, the spread between the best and the most expensive fixed rate is worth over AED 170,000 in interest on a AED 1.5M loan. The best Islamic profit rate (3.90%) sits just above the best conventional (3.78%), so both are worth including in any comparison. Start with the live rate comparison, then run your numbers on the calculator.
Frequently asked questions
How do I compare mortgage rates across UAE banks?
To compare UAE bank mortgages properly, you need three numbers for each lender: the initial fixed rate (typically for 1 to 5 years), the revert rate after the fix expires (usually EIBOR plus a margin), and the processing fee. The monthly payment during the fixed period is calculated with the PMT formula. The true cost comparison requires projecting both periods over the full 25-year term.
What is the difference in total interest between the cheapest and most expensive UAE mortgage?
On a AED 1.5M mortgage over 25 years, the difference between the best 3.78% conventional fixed rate and a 4.49% conventional fixed rate is approximately AED 177,700 in total interest paid. In monthly terms, the gap is around AED 592 per month. The best Islamic profit rate (3.90%) costs roughly AED 29,500 more in total interest than the best conventional over the full term.
Should I compare fixed or variable UAE mortgage rates?
You need to compare both the fixed-period rate and the revert variable rate, since most UAE mortgages switch from a fixed rate to EIBOR-plus-margin after 1 to 5 years. A bank offering a lower fixed rate but a higher EIBOR margin on revert may cost more over 25 years. The total cost comparison across the full term matters more than just the headline fixed rate.
Are Islamic mortgage rates lower than conventional in the UAE?
Not in June 2026. The best Islamic profit rate (3.90% from Dubai Islamic Bank) sits just above the best conventional fixed rate (3.78% from Standard Chartered), with conventional 5-year fixed rates ranging from 3.78% to 4.49% (source: bank rate sheets, June 2026). The gap is small, so the comparison needs to account for the full cost of both products including processing fees and revert rates.
What should a UAE mortgage comparison calculator show?
A useful UAE mortgage comparison calculator should show: monthly payment during the fixed period, monthly payment at the revert EIBOR-plus-margin rate, total interest over the full term, total processing and upfront fees, and the effective annual rate across both periods. The headline fixed rate alone does not tell you which bank is cheaper over 25 years.
How much does a 0.25% rate difference matter on a UAE mortgage?
On a AED 1.5M mortgage over 25 years, a 0.25 percentage point difference in the interest rate changes the monthly payment by approximately AED 213 and the total interest paid by around AED 63,900 over the full term.
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