What are the different types of interest rates in the UAE for mortgages?

In the UAE, there are primarily two types of interest rates for mortgages: fixed rates and variable rates. Fixed rates remain constant throughout the loan term, providing stability in monthly payments, which is beneficial for budgeting.

In contrast, variable rates are calculated on the outstanding loan amount, meaning the interest decreases as you repay the principal, often resulting in lower overall interest costs over time

Interest rates for mortgages in the UAE usually start around 1.49% for fixed rates and can go up to 7.63% for variable rates, depending on the lender and the borrower's profile. Understanding these options is crucial for prospective buyers in the UAE's competitive mortgage market.