Published home loan rates from major UAE banks. Islamic and conventional. Mortgage comparison UAE.
Rates last verified: 14 August 2026
The lowest conventional mortgage rate in the UAE right now is 3.89% reducing, from Emirates NBD with salary transfer. The lowest Islamic home finance rate is 3.75% reducing from Sharjah Islamic Bank, which is currently the lowest rate of either kind. Both are initial fixed rates that revert to EIBOR plus the bank's margin once the fixed period ends.
The two benchmarks driving every rate on this page: 3-month EIBOR is 3.91% and the CBUAE base rate is 3.65%. Variable mortgages revert to EIBOR plus a fixed margin after the introductory period. At current EIBOR, a reversion to EIBOR + 1.25% gives a post-fixed rate of approximately 5.16%. Factor that into your planning, not just the headline number.
We track published rates from major UAE banks and lenders and update the table when they change. The table below shows published initial rates for a standard purchase: employed borrower, first property under AED 5M, 80% LTV. Your actual offer depends on your employer category, credit profile, and whether you transfer your salary to the lending bank. For the bigger picture, start with our mortgage comparison homepage, where major UAE lenders are ranked side by side.
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Chat on WhatsAppRates as of August 2026 Read from lender product records, filtered to active fixed-rate products for salaried UAE residents. Rows marked * have a sourced rate but at least one unread detail, and are never used for a lowest or best claim. Reference 3-month EIBOR 3.91%.
| # | Bank / Product | Type | Rate | Fixed terms offered | Follow-on rate | Bank fee | Monthly (AED 1M) | Notes | Apply |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Sharjah Islamic Bank Fixed home finance |
Islamic | 3.75% | 1 yr | 3m EIBOR + 1.75% | 0% | AED 5,141 | Cheapest fixed rate in the portal | Apply direct |
| 2 | Arab Bank Fixed home loan |
Conventional | 3.78%* | 2 yrs | not stated | not stated | AED 5,158 | Rate confirmed in the portal; conventional or Islamic not yet confirmed | Apply direct |
| 3 | Emirates NBD Standard, salary transfer |
Conventional | 3.89% | 1 / 2 / 3 yrs | 1m EIBOR + 1.99% | 0.26% | AED 5,218 | Salary transfer required. 1-year fixed is dearer at 3.99% | Apply direct |
| 4 | RAKBANK Fixed home loan |
Conventional | 3.89%* | not stated | not stated | not stated | AED 5,218 | Rate confirmed in the portal; term, fee and follow-on not yet read | Apply direct |
| 5 | United Arab Bank Fixed home finance |
Islamic | 3.89%* | not stated | not stated | not stated | AED 5,218 | Rate confirmed in the portal; term, fee and follow-on not yet read | Apply direct |
| 6 | Dubai Islamic Bank Standard, salary transfer |
Islamic | 3.95% | 3 / 5 yrs | 3m EIBOR + 1.00% | 0% | AED 5,251 | Salary transfer required. Same rate for nationals and residents | Apply direct |
| 7 | ADIB Standard, salary transfer |
Islamic | 3.99% | 3 / 4 / 5 / 7 to 20 yrs | 1m EIBOR + 1.60% | 0% | AED 5,273 | Salary transfer required. Terms to 20 years. The 4-year is dearer than the 5-year | Apply direct |
| 8 | First Abu Dhabi Bank Standard, salary transfer |
Conventional | 3.99% | 1 / 2 / 3 / 5 yrs | 3m EIBOR + 1.50% | 0% | AED 5,273 | Salary transfer required. Conventional and Islamic both offered | Apply direct |
| 9 | Mashreq Premium pricing segment |
Conventional | 3.99% | 2 yrs | 3m EIBOR + 1.75% | 0% | AED 5,273 | Premium segment only. Standard segment is 4.49% to 4.74% | Apply direct |
| 10 | HSBC Private and Premier, no salary transfer |
Conventional | 4.05% | 1 / 2 / 3 / 5 yrs | 3m EIBOR + 1.09% | 0.52% | AED 5,306 | Relationship tiered: Advance 4.25%, Personal Banking 4.55% | Apply direct |
| 11 | ADCB Fixed home loan |
Conventional | 4.13% | not stated | not stated | not stated | AED 5,350 | Rate supplied by Gareth on 18 Aug 2026; term, reversion margin and fee not yet read | Apply direct |
| 12 | Standard Chartered Standard, no salary transfer |
Conventional | 4.29% | 1 / 2 / 3 / 5 yrs | 3m EIBOR + 1.10% | 0.26% | AED 5,440 | No salary transfer required | Apply direct |
| 13 | Standard Chartered Mortgage One, no salary transfer |
Conventional | 4.39% | 1 / 2 / 3 / 5 yrs | 3m EIBOR + 1.10% | 0.26% | AED 5,496 | No salary transfer required | Apply direct |
| 14 | Standard Chartered Saadiq One, no salary transfer |
Islamic | 4.44% | 1 / 2 / 3 / 5 yrs | 3m EIBOR + 1.10% | 0.26% | AED 5,524 | No salary transfer required | Apply direct |
* Indicative rate carried from the bank's last published pricing and pending re-verification. Rates marked * are never used for our lowest-rate claims. How we source and verify rates.
Every mortgage rate you see in the UAE traces back to two numbers: the CBUAE base rate and EIBOR, the Emirates Interbank Offered Rate. The CBUAE base rate is set by the Central Bank of the UAE and currently sits at 3.65%. EIBOR is the rate at which UAE banks lend to each other overnight and at 1-, 3-, 6-, and 12-month tenors. The 3-month EIBOR (3.91%) is the benchmark most mortgage variable rates are linked to.
The connection to the United States matters here. The UAE dirham is pegged to the US dollar at a fixed rate, and the CBUAE base rate moves in lockstep with the US Federal Reserve's federal funds rate. When the Fed cuts, the CBUAE cuts within 24 hours. When the Fed raises rates, the CBUAE follows. This means UAE mortgage rates are directly tied to US monetary policy, which is unusual by global standards but predictable once you understand it.
Here is how it flows from policy rate to your monthly payment:
Banks can and do go below their published rates for attractive borrowers. Government employees, borrowers with existing relationships, and those with high salaries relative to their loan size all get better offers. The table rates are published floor rates, not guaranteed quotes.
Most UAE mortgage products are described as "fixed" but are fixed only for an initial period, typically 1 to 3 years. After that, they become variable, tracking EIBOR plus the bank's margin. There are very few genuinely long-term fixed products in the UAE market. Understanding this structure matters because the introductory rate you see in the comparison table is not the rate you will pay for most of your mortgage's life.
Lower introductory rate. You revert to EIBOR + margin sooner, which means you benefit more quickly if EIBOR falls. More frequent refinancing decisions. Better if you expect rates to fall or plan to sell the property within a few years.
Payment certainty for longer. Usually a slightly higher introductory rate than the 1-year equivalent. Protects you if EIBOR rises. Better if you want to budget predictably and are not planning to sell or refinance soon.
The decision comes down to your view on EIBOR direction and your personal need for payment certainty. With the Fed signalling further cuts through 2026 and EIBOR likely to follow, many UAE borrowers are choosing shorter fixed periods to position for lower reversion rates. That works if EIBOR does fall. If US inflation resurges and the Fed reverses, variable rates rise and you pay more than a longer-fixed borrower would.
One practical consideration: UAE banks charge an early settlement fee when you refinance, capped at 1% of the outstanding balance for variable-rate products by CBUAE regulation. If you plan to refinance when your fixed period ends, factor that cost into your comparison. On a AED 1 million loan it is AED 10,000. On a AED 2 million loan it is AED 20,000. Worth paying if the rate saving is significant, but it is a real cost.
Use our mortgage calculator to model both scenarios: your payment on the introductory rate, and your payment if the reversion rate is EIBOR plus 1.25% at today's EIBOR level. The difference tells you how much rate risk you are carrying after year one.
The Central Bank of the UAE sets the maximum loan-to-value ratio for every home loan in the country. These are hard caps. No bank can lend above them regardless of your credit score or income. Understanding LTV determines your minimum down payment before you even compare rates.
| Borrower type | Property value | Max LTV | Min down payment |
|---|---|---|---|
| UAE national, first home | AED 5M or less | 85% | 15% |
| UAE national, first home | Over AED 5M | 75% | 25% |
| UAE national, second / investment | Any value | 65% | 35% |
| Expat resident, first home | Under AED 5M | 80% | 20% |
| Expat resident, first home | Over AED 5M | 70% | 30% |
| Expat resident, second / investment | Any value | 60% | 40% |
| Non-resident (typical bank policy, not a CBUAE cap) | Any value | 50% | 50% |
Source: CBUAE Mortgage Regulations (Circular No. 31/2013 and subsequent amendments). Islamic home finance products follow the same LTV caps. LTV is calculated on the lower of purchase price or bank valuation.
LTV is only one part of CBUAE affordability rules. The Debt Burden Ratio (DBR) also applies: your total monthly debt commitments (including the new mortgage) must not exceed 50% of your gross monthly salary. Use our eligibility checker to see your DBR-adjusted maximum loan size.
Banks publish their most competitive rate, which applies to a specific customer profile. Those rates are real, but they are the floor, not the average. Several factors can move your offered rate above the published figure:
The most effective way to get a better rate is to get pre-approvals from two or three banks simultaneously and share competing offers with your preferred lender. Banks will often match or beat a competitor's rate rather than lose the deal. The bank arrangement fee is negotiable too: it runs 0% to 1% of the loan, several lenders in the table above charge nothing at all, and a broker can usually talk the rest down.
UAE mortgage rates track the US Federal Reserve because of the AED-USD peg. Any movement in the Fed funds rate flows through to the CBUAE base rate within 24 hours, which then flows through to EIBOR over the following days and weeks.
Market expectations (Fed funds futures) price in one to two further Fed cuts through the end of 2026. If those cuts materialise, UAE mortgage rates could fall by a corresponding amount. A 0.50% fall in EIBOR would reduce the reversion rate on a variable mortgage from the current 5.16% (EIBOR + 1.25%) to approximately 4.66%. On a AED 1.2 million loan over 25 years, that is a saving of approximately AED 350 per month.
The risk scenario is the one that US inflation data has introduced periodically through 2025: a resurgence in US price growth that causes the Fed to pause or reverse its cutting cycle. If that happens, EIBOR stays flat or rises, and UAE variable mortgage rates do not fall. Fixed-rate borrowers would be insulated; variable-rate borrowers would see no benefit.
For the latest analysis of where EIBOR and UAE mortgage rates are heading, including a month-by-month EIBOR history table and Fed meeting tracker:
Read the UAE mortgage rate outlook for 2026 →Understand what EIBOR is, how it is set, and how it affects your monthly payment:
EIBOR tracker and history →See which bank is cheapest this month, ranked bank by bank with the fixed and reversion rates side by side:
Best mortgage rates in the UAE, compared →Down to two lenders? We put the two most requested head to head in HSBC vs FAB for a UAE mortgage. Expats comparing on price alone should start with the cheapest expat mortgage rates, where the deposit rules change the real cost.
Model your monthly payment with a specific lender's rate preloaded:
Standard Chartered · ADCB · Emirates NBD · DIB · FAB · HSBC · Mashreq · ADIB · RAKBANK · CBD
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