UAE mortgage rates today: May 2026 update
The cheapest UAE mortgage today sits at 3.25% reducing — an Islamic profit rate from National Bank of Fujairah. The cheapest conventional UAE mortgage is 3.70% reducing from HSBC. Both are unchanged from April. The 3-month EIBOR sits at 3.69% and the CBUAE base rate is 3.65%.
This page is updated monthly with the latest rates we track. For real-time comparison across all 55+ products, use the full rate tracker.
This month at a glance: Headline rates are flat. Islamic finance continues to lead on price across the cheapest five products. EIBOR has held in the 3.65%-3.70% range for the past four weeks, suggesting the CBUAE rate cycle is in a holding pattern pending the next Federal Reserve move.
Cheapest five UAE mortgage products today
| Rank | Bank | Type | Initial rate | Fixed period | Reverts to |
|---|---|---|---|---|---|
| 1 | NBF | Islamic | 3.25% | 2 years | EIBOR + 1.25% |
| 2 | Dubai Islamic Bank | Islamic | 3.49% | 1 year | EIBOR + 1.35% |
| 3 | Standard Chartered Saadiq | Islamic | 3.50% | 1 year | EIBOR + 1.40% |
| 4 | ADIB | Islamic | 3.59% | 3 years | EIBOR + 1.45% |
| 5 | HSBC | Conventional | 3.70% | 1 year | EIBOR + 1.50% |
Source: MortgageCompare.ae rate tracker, May 2026.
The cheapest four products in the UAE are all Islamic. This is a continuation of a multi-month trend: Islamic banks have been pricing aggressively to win market share, and conventional lenders haven't matched. ADIB's 3-year fixed at 3.59% is the longest meaningful fix at the cheap end of the market — most other products fix for 1 or 2 years before reverting.
What's changed since April 2026
- Top of market unchanged: NBF Islamic 3.25% and HSBC Conventional 3.70% both hold their positions.
- EIBOR steady: 3-month EIBOR has traded in a tight 3.65%-3.70% range for four weeks.
- CBUAE base rate steady: Held at 3.65% pending the next Fed decision.
- No new entrants in the top 5: The composition of the cheapest products is identical to last month.
EIBOR commentary: where rates go from here
The CBUAE base rate tracks the US Federal Funds rate closely because the dirham is pegged to the US dollar. With the Fed currently in a holding pattern and futures markets pricing limited near-term cuts, expect EIBOR and UAE mortgage reversion rates to trade in roughly the current range through Q2 2026.
What this means for borrowers:
- If you fix today at 3.25%-3.70%, you're locking in a meaningful margin below where reversion rates currently sit (EIBOR + 1.25% = ~4.94%).
- If you have a variable mortgage already on EIBOR + margin, your effective rate is unlikely to fall significantly in the next quarter.
- Refinancing math: the savings between a 4.94% reversion rate and a 3.25% new fixed rate easily cover early settlement and new arrangement fees on most loans above AED 750,000. Run the numbers using our mortgage calculator.
Indicative monthly payment at today's rates
What a AED 1,000,000 mortgage costs per month at today's leading rates, over a 25-year term:
| Rate | Bank | Monthly payment | Total interest over 25 years |
|---|---|---|---|
| 3.25% | NBF Islamic | AED 4,872 | ~AED 461,600 |
| 3.49% | Dubai Islamic Bank | AED 5,005 | ~AED 501,500 |
| 3.70% | HSBC Conventional | AED 5,124 | ~AED 537,200 |
| 4.00% | Mid-market | AED 5,278 | ~AED 583,400 |
Choosing NBF over a 4.00% mid-market product saves roughly AED 121,800 in interest over 25 years on a AED 1M loan. The case for shopping every cheap product is straightforward.
Background reading
- Best mortgage rates in the UAE — full bank comparison
- Islamic vs conventional mortgages in the UAE
- EIBOR explained: how it affects your mortgage
- Cheapest expat mortgage in the UAE
- How much mortgage can I afford in the UAE?
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