What are the current mortgage rates in the UAE for 2025?

As of 2025, UAE mortgage rates vary depending on the lender and loan type. Fixed-rate mortgages range from 3.99% to 5.49%, while variable rates start at around 3.5% (EIBOR + lender margin). Islamic financing options typically have rates between 4% and 6%.

How much down payment is required for a mortgage in the UAE?

For expatriates, the minimum down payment is 20% for properties under AED 5 million and 30% for properties above AED 5 million. UAE nationals have a lower requirement of 15% and 25%, respectively. Off-plan properties usually require a 50% down payment.

Which banks offer the best mortgage rates in the UAE?

Some of the top banks offering competitive mortgage rates in 2025 include Emirates NBD, ADCB, Mashreq Bank, and Dubai Islamic Bank. It is recommended to compare mortgage rates and terms before selecting a lender.

What are the different types of mortgages available in the UAE?

The UAE offers various mortgage options, including fixed-rate, variable-rate, and Islamic home financing (Ijara, Musharakah, and Murabaha). Fixed-rate mortgages provide stable monthly payments, while variable-rate loans fluctuate based on EIBOR rates.

How do I qualify for a home loan in the UAE?

To qualify for a UAE mortgage, you need a minimum monthly salary of AED 15,000 (varies by lender), a good credit score (700+ recommended), a stable employment history, and a debt-to-income ratio below 50%.

What are the fees associated with getting a mortgage in the UAE?

Common fees include a processing fee (0.5% to 1% of the loan amount), a mortgage registration fee (0.25% of the loan amount payable to the Dubai Land Department), and a property valuation fee (AED 2,500 to AED 3,500).

Can expatriates get a mortgage in the UAE?

Yes, expatriates can apply for mortgages in the UAE, but they need to meet lender requirements, such as a minimum down payment of 20% and a stable income source. Some banks may also require proof of residency.

What is the maximum loan term for mortgages in the UAE?

The maximum loan repayment period for home financing in the UAE is 25 years. However, the mortgage must be fully repaid before the borrower reaches 65 years old (for expatriates) or 70 years old (for UAE nationals).

UAE Mortgage Guide 2025: Compare Rates & Find the Best Home Loan

Introduction

Buying a home in the UAE is a significant financial commitment, and understanding mortgage options can help you make the right decision. With changing interest rates, different mortgage types, and strict eligibility criteria, choosing the right home loan requires careful planning.

This guide covers:

The latest mortgage trends and interest rates in the UAE
How to qualify for the best mortgage rates
A breakdown of home loan types available in the UAE
Common mistakes to avoid when financing a home
A step-by-step mortgage application process

By the end of this article, you’ll know exactly how to secure the best home financing options in the UAE for 2025.

Mortgage Trends & Interest Rates in the UAE (2025)

Current Mortgage Rates in the UAE

As of 2025, UAE mortgage rates vary based on the type of loan and lender. The average mortgage rates are:

Fixed-rate mortgages: 3.99% – 5.49% (for 1-5 years)
Variable-rate mortgages: Starts at 3.5% (EIBOR + lender margin)
Islamic home financing: Rates range between 4% – 6%

Market Conditions Affecting Mortgages

UAE property prices are stabilizing after rapid growth in 2023-2024.
Loan-to-Value (LTV) limits remain at 75% for expats and 80% for UAE nationals.
Off-plan properties require at least a 50% down payment.

How to Get the Best Mortgage Rate in the UAE

1. Improve Your Eligibility

To qualify for the lowest mortgage rates, you need:

A stable income (Minimum AED 15,000/month for salaried employees)
A strong credit score (700+ increases your chances)
A low debt-to-income ratio (Mortgage + other loans should be under 50% of your monthly income)

2. Choose the Right Down Payment Strategy

Expats: Minimum 20% down payment for properties below AED 5 million.
UAE Nationals: Minimum 15% down payment for properties below AED 5 million.
Off-plan properties: Require a 50% or higher down payment for expats.

3. Compare Mortgage Providers

Different banks in the UAE offer different mortgage rates. Here are the top banks for home financing in 2025:

Bank Name	Fixed Rate (5 years)	Variable Rate	Islamic Financing
Emirates NBD	4.25%	3.75% (EIBOR + 2%)	Yes
ADCB	4.50%	3.99% (EIBOR + 2.5%)	Yes
Mashreq Bank	4.99%	3.85% (EIBOR + 1.8%)	Yes
Dubai Islamic Bank	4.75%	3.99% (Murabaha)	Yes

Always compare multiple lenders before applying for a mortgage.

Types of Mortgage Loans in the UAE

Fixed-Rate vs. Variable-Rate Mortgages

Fixed-Rate Mortgage: Interest rate is locked for 1-5 years. Best for long-term stability.
Variable-Rate Mortgage: Interest rate fluctuates based on EIBOR (Emirates Interbank Offered Rate). Ideal for those who can handle rate changes.

Islamic Home Financing (Sharia-Compliant Mortgages)

Ijara: The bank buys the property and leases it to you.
Musharakah: A co-ownership model where you gradually buy out the bank’s share.
Murabaha: The bank purchases the property and sells it to you at a profit.

Government-Backed Housing Programs (For UAE Nationals Only)

Sheikh Zayed Housing Program: Offers housing loans and grants.
Mohammed Bin Rashid Housing Establishment (MBRHE): Interest-free home loans.
Abu Dhabi Housing Authority (ADHA): Low-interest, long-term home loans.

Common Mortgage Mistakes to Avoid

1. Not Getting Pre-Approved Before House Hunting

Why it’s a mistake: Pre-approval helps you secure a loan limit before searching for a property.
How to fix it: Get pre-approved with a bank before making offers.

2. Underestimating Hidden Costs

Mortgage registration fee: 0.25% of loan amount (Dubai Land Department)
Processing fee: 0.5% to 1% of loan amount
Property valuation fee: AED 2,500 to AED 3,500

3. Choosing the Wrong Mortgage Type

Fixed-rate is better for long-term buyers.
Variable-rate is better if rates are expected to fall.
Islamic financing is better for Sharia-compliant buyers.

Step-by-Step Mortgage Application Process in the UAE

1. Get Pre-Approval from a Bank

Submit salary certificate, bank statements, and Emirates ID.
The bank will assess your eligibility and issue a pre-approval letter.

2. Choose a Property and Sign an MOU

Sign a Memorandum of Understanding (MOU) with the seller.
Pay a 10% deposit to secure the property.

3. Finalize Your Mortgage Application

The bank will conduct a property valuation.
The final loan amount is approved.

4. Register the Mortgage with the Dubai Land Department (DLD)

Pay the mortgage registration fee (0.25% of the loan amount).
The title deed is transferred to your name.

Final Thoughts

Securing a mortgage in the UAE requires careful financial planning and understanding the different loan options. Whether you choose a fixed-rate mortgage, variable-rate mortgage, or Islamic financing, comparing lenders and getting pre-approved can save you money and ensure a smooth home-buying process.

If you’re ready to explore mortgage options, contact a UAE mortgage expert today.