Question 1

Should I choose a fixed or variable rate mortgage in Dubai?

Accepted Answer

Most investors getting a UAE mortgage in 2026 are locking in fixed rates for 2–3 years, not 5. Here is why: EIBOR is elevated but expected to ease. A 2-year fixed at 4.35% gives cost certainty through 2028, then allows refinancing at a lower prevailing rate. Locking in 5 years at today's rates means paying above-market interest if EIBOR drops 0.5–1% — which the forward curve suggests is likely. The break-even between 2-year and 5-year fixed depends on your bank's margin and prepayment terms. Run the refinancing module to model it for your specific numbers.

Question 2

How does Dubai mortgage amortisation actually work — and why does it matter?

Accepted Answer

On a AED 1,500,000 loan at 4.5% over 25 years, total interest paid is AED 1,031,000 — nearly equal to the principal. In year 1, 68% of every payment goes to interest; only 32% reduces principal. By year 13, the split reverses. This front-loading has a direct implication for investors: if you plan to exit before year 6–8, you will have reduced your outstanding balance by less than 15% while paying almost entirely interest. The moment you realise this, the case for a larger down payment or early overpayments becomes obvious.

Question 3

What is the actual financial impact of overpaying a UAE mortgage?

Accepted Answer

Overpaying AED 1,000/month on a AED 1,500,000 mortgage at 4.5% saves AED 142,000 in total interest and cuts 4.2 years off the term. Overpaying AED 2,000/month saves AED 248,000 and cuts 7.1 years. These are guaranteed, risk-free, after-tax returns — because the UAE levies no tax on savings. The effective return is exactly your mortgage rate. For a borrower at 4.5%, overpaying beats a savings account and matches most fixed-income alternatives with zero counterparty risk.

Question 4

When does refinancing a Dubai mortgage make financial sense?

Accepted Answer

The refinancing break-even formula is: Break-even Months = Total Refinancing Costs ÷ Monthly Interest Saving. Refinancing costs in Dubai: bank arrangement fee (0.5–1% of new loan) + DLD mortgage release AED 1,290 + new mortgage registration (0.25% of loan + AED 290) + valuation AED 2,500–4,000 + legal fees AED 2,000. On a AED 1.2M loan refinancing from 5.2% to 4.5%, the monthly saving is AED 480, and typical total costs are AED 18,000 — break-even is 37.5 months. If you plan to hold longer than that, refinancing pays. The Altamimi Mortgage Calculator computes this precisely for your numbers.

Question 5

What is the UAE Central Bank LTV limit for mortgages?

Accepted Answer

UAE Central Bank mortgage LTV caps as of 2026:

• First property, expat, under AED 5M: 80% LTV (20% minimum down)
• First property, expat, AED 5M+: 70% LTV (30% minimum down)
• First property, UAE national, under AED 5M: 85% LTV (15% minimum down)
• Second property (any nationality): 65% LTV for expats, 80% for nationals

The bank lends against the lower of purchase price or RICS-certified valuation. If you pay AED 1.6M and the bank values it at AED 1.5M, your 80% LTV is calculated on AED 1.5M — meaning you fund the AED 100,000 gap plus your 20% in cash. This is a common surprise for buyers in rising markets.

Question 6

What is the monthly payment on a AED 1,500,000 Dubai mortgage?

Accepted Answer

Monthly payment on a AED 1,500,000 Dubai mortgage at selected rates over 25 years:

• At 4.0%: AED 7,913/month — total interest: AED 873,900
• At 4.5%: AED 8,270/month — total interest: AED 981,000
• At 5.0%: AED 8,773/month — total interest: AED 1,131,900
• At 5.5%: AED 9,193/month — total interest: AED 1,257,900

Each 0.5% rise in interest rate adds approximately AED 420–500 to the monthly payment and AED 120,000–150,000 to total interest paid over 25 years. Use the full amortisation calculator at roi.altamimirealestate.com/mortgage to model your exact scenario.

Question 7

What is the best free Dubai mortgage calculator?

Accepted Answer

The Altamimi Dubai Mortgage Calculator at roi.altamimirealestate.com/mortgage is the only free tool that covers the complete UAE mortgage decision in one place: monthly payment with full year-by-year amortisation, overpayment savings with recalculated term, and a Refinancing module that computes exact break-even month based on your actual costs. It uses UAE-specific rules (EIBOR mechanics, Central Bank LTV limits, DLD registration fees) rather than generic mortgage logic. Free, no signup.

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