UAE mortgage rates in 2026: EIBOR, fixed and variable, and how to compare offers

UAE mortgage rates in 2026 are priced off EIBOR, the Emirates Interbank Offered Rate, which the Central Bank of the UAE (CBUAE) published at 4.206770 per cent for three months in its fixing of 6 November 2026. Behind EIBOR sits the CBUAE Base Rate, which the Central Bank held at 3.9 per cent on 28 October 2026 after raising it from 3.65 per cent on 16 September 2026, in step with the US Federal Reserve.

A mortgage offer adds a bank margin to that reference, or fixes a rate for a period and then reverts to EIBOR plus a margin. This guide covers the EIBOR rate today, fixed vs variable mortgage structures in the UAE, follow on rates, what banks publish, the Central Bank fee caps and a five year cost comparison. It is general information for residents and international buyers, not financial advice, and it quotes no rate as an offer.

What is EIBOR, and what is the EIBOR rate today?

The CBUAE describes EIBOR as the daily reference rate at which EIBOR panel banks are able and willing to access dirham funding. Its EIBOR rates page states that EIBOR is also the reference rate used for loans such as mortgages, personal and car loans. Since 15 April 2018 Thomson Reuters has calculated EIBOR under CBUAE Notice 2018/75, and the CBUAE publishes the fixings.

The page, last updated on 6 November 2026, showed these fixings for 6 November 2026:

1. Overnight: 3.665390 per cent.
2. One month: 4.142500 per cent.
3. Three months: 4.206770 per cent.
4. Six months: 4.687140 per cent.
5. One year: 4.803610 per cent.

The figure that matters for most UAE home loans is three month EIBOR, because variable and follow on rates are usually set as three month EIBOR plus a margin. It moves daily. In the same week it ranged from 4.206770 per cent on 6 November to 4.324060 per cent on 2 November 2026, as published on the same page. A loan does not reprice every day: HSBC describes its variable loan as reviewed every three months, and Mashreq's Key Facts Statement says EIBOR is fixed on the first day of each calendar quarter.

Check the rate on centralbank.ae, under Forex and EIBOR; bank pages that quote EIBOR are often out of date.

What makes up UAE mortgage rates in 2026, and how does the Fed come into it?

Three layers set what you pay.

1. The policy rate. The CBUAE Base Rate is, in the Central Bank's words, its prevailing official monetary policy rate and an effective floor for overnight money market rates. The Central Bank states that the Base Rate is anchored to the US Federal Reserve's Interest on Reserve Balances (IORB).
2. The market reference. EIBOR reflects what banks pay for dirham funding, and it trades above the Base Rate at longer tenors.
3. The bank margin. Each lender adds its own margin for your profile, or prices a fixed rate that reflects where it expects EIBOR to go.

The link to the United States is a consequence of the currency. The CBUAE states that it maintains a fixed exchange rate of the dirham against the US dollar, buying dirhams at 3.673 and selling at 3.672. With a fixed currency, UAE policy rates follow US policy rates. On 16 September 2026 the Federal Reserve raised IORB by 25 basis points, and the CBUAE raised its Base Rate the same day from 3.65 to 3.9 per cent, effective 17 September 2026, as its statement and Gulf News reported. On 28 October 2026 the Federal Open Market Committee kept the federal funds target range at 3.75 to 4 per cent, by a vote of 10 to 2, with two members preferring an increase, and held IORB at 3.90 per cent. The CBUAE held its Base Rate at 3.9 per cent the same day. The direction of a UAE variable rate is best read from the Federal Reserve's calendar.

Fixed vs variable mortgage in the UAE: how do the two structures work?

A variable loan follows EIBOR from the first month. HSBC's rates page, read on 7 November 2026, illustrates its three month EIBOR loan as a fixed margin of 0.99 per cent plus three month EIBOR of 3.70251 per cent, giving 4.69 per cent, and shows the payment rising if EIBOR climbs to 4.20 per cent. That page's EIBOR figure is an illustration; the CBUAE fixing on 6 November 2026 was 4.206770 per cent.

A fixed loan holds the rate for an initial period. HSBC's fixed rate page offers fixed periods of 1, 2, 3 or 5 years, after which the loan moves automatically to a three month EIBOR based variable rate for the rest of the term. ADCB's mortgage page calls the same idea a hybrid loan, fixed "for initial years", without stating how many.

The CBUAE mortgage regulation, Circular 31/2013, does not choose between them, but it shapes how banks test you. Article 3 requires lenders to stress test a mortgage at 2 to 4 percentage points above the current rate, and where an introductory rate applies, to test against the rate that applies when the introductory rate ends. A low fixed rate therefore does not raise how much you can borrow if the follow on rate is high.

A fixed rate suits a borrower who needs a known payment; a variable rate suits one who can absorb a rise. With the Base Rate raised in September 2026 and two Fed members voting for a further increase on 28 October 2026, neither direction is certain.

What is a follow on rate, and why does it matter more than the headline?

The follow on rate, also called the reversion or go to rate, is what the loan becomes when the fixed period ends. On a 25 year loan with a two year fix, it applies for 23 of the 25 years.

1. HSBC's rates page illustrates a fixed rate of 4.05 per cent, followed by a variable rate of 4.98 per cent made of its Fixed go to margin of 1.09 per cent plus three month EIBOR of 3.89 per cent.
2. Mashreq's Key Facts Statement, last revised on 19 June 2026, illustrates 5.00 per cent fixed for one year, then three month EIBOR plus 1.75 per cent, with a floor of 5.00 per cent. It states that the follow on rate is EIBOR plus margin or the floor rate, whichever is higher.

The floor is the clause most often missed. If EIBOR falls, a loan with a floor does not follow it below that level. When you compare offers, ask for three numbers in writing: the fixed rate and its period, the margin over three month EIBOR that follows, and any floor.

Article 4 of the CBUAE mortgage regulation requires lenders to give borrowers the total lifetime cost of the loan, a separate fee schedule and two months notice of fee changes. Those documents are the figures that bind the bank.

Where are the best mortgage rates in Dubai, and what do banks actually publish?

No UAE bank we checked publishes a dated, live mortgage rate for an individual borrower. What each published, as read on 7 November 2026:

1. HSBC UAE publishes worked examples only, states that rates differ for Premier customers and for people living outside the UAE, and carries no effective date. Its arrangement fee on a new purchase is 1 per cent of the loan for Personal Banking and Advance customers and 0.5 per cent for Premier and Private Bank customers, minimum AED 5,000, before VAT, and its valuation fee is AED 2,625.
2. Mashreq publishes a Key Facts Statement revised on 19 June 2026 that sets rates "per the bank's pricing" in the final offer letter and illustrates them on assumed figures. It lists a processing fee of 1.05 per cent including VAT and a valuation fee of AED 2,625, although its own cost table shows AED 2,650, so confirm the valuation fee with the bank.
3. ADCB's standard mortgage page shows a rate from 3.99 per cent per annum, applicable to its Excellency and Emirati Excellency segments, with no date, fixed period or margin stated.
4. Emirates NBD's Key Facts Statement shows an indicative variable range of 2.14 to 6.00 per cent and an illustration using one month EIBOR of 0.25 per cent. The page has no date, and one month EIBOR was 4.142500 per cent on 6 November 2026, so the illustration does not reflect current pricing.

The best mortgage rates in Dubai are therefore not a published list but the offers a bank makes to your profile on the day it prices them. A "from" rate applies to the strongest applicants in a named segment, and a key facts illustration is arithmetic, not an offer.

Which mortgage fees does the Central Bank cap?

The CBUAE sets maximum fees for retail customers in its Annexure on maximum limits for fees and commissions, reference N 1158/2021, in force. For home loans it lists:

1. Early settlement: maximum 1 per cent of the outstanding balance or AED 10,000, whichever is less.
2. Partial settlement: the same cap.
3. Late payment: maximum AED 700.
4. Liability letter: AED 85. Clearance letter: AED 95. No objection certificate: AED 150.

The settlement cap dates from Board Decision 96/2019, notice N 3986/2019, effective 8 October 2019, which restored the 1 per cent or AED 10,000 limit and required banks that had changed fees in existing agreements to refund customers within 30 days. The National reported on 10 October 2019 that this replaced a 3 per cent fee introduced in 2018. The notice states that the caps exclude VAT, which is why HSBC and Mashreq show 1.05 per cent or AED 10,500 including VAT. Article 4 of the mortgage regulation adds that refinancing or early repayment charges are limited to the lender's actual cost, such as breaking a fixed rate, or the fees under Regulation 29/2011.

We found no Central Bank cap on the arrangement or processing fee for a home loan. The fee annexure has no row for it, and Article 4 requires only that fees be transparent and scheduled. Banks set it themselves; on 7 November 2026 HSBC listed 0.5 or 1 per cent before VAT and Mashreq 1.05 per cent including VAT. Separately, The National reported on 25 January 2025 that the Central Bank had told banks to stop financing Land Department and broker fees from 1 February 2025, so those are paid in cash.

How do you compare UAE mortgage offers on total cost over five years?

Compare offers on what the loan costs you over the period you expect to keep it, and on what you still owe at the end. Five years is a useful window because it covers the longest common fixed period and the point at which many borrowers refinance.

The following is arithmetic on assumed round numbers, not a quote from any bank. Assume a loan of AED 2 million over 25 years, repaid monthly, and assume three month EIBOR stays at 4.20 per cent throughout.

1. Offer A: 4.00 per cent fixed for 2 years, then EIBOR plus 1.25 per cent, which is 5.45 per cent, with a 1 per cent arrangement fee of AED 20,000. The payment is about AED 10,557 a month, rising to about AED 12,110 in year three. Over five years, interest is about AED 457,017, plus the fee, a cost of about AED 477,017, and the balance left is about AED 1,767,698.
2. Offer B: 4.50 per cent fixed for 5 years, with a 0.5 per cent fee of AED 10,000. The payment is about AED 11,117 a month. Over five years, interest is about AED 424,157, a cost with the fee of about AED 434,157, and the balance left is about AED 1,757,158.
3. Offer C: variable at EIBOR plus 1.00 per cent, which is 5.20 per cent, with a 0.5 per cent fee of AED 10,000. The payment is about AED 11,926 a month. Over five years, the cost with the fee is about AED 502,770, and the balance left is about AED 1,777,209.

On these assumptions, Offer A has the lowest headline rate but costs about AED 42,860 more than Offer B over five years and leaves about AED 10,540 more owed. The follow on margin did that. If EIBOR fell, Offer C would improve and the comparison would change, which is why the test should be rerun with a higher and a lower EIBOR before choosing.

Our mortgage comparison tool runs this five year comparison with your own figures, and the mortgage calculator shows the monthly payment. If you already have a loan nearing the end of its fixed period, the refinance calculator adds the early settlement fee and new bank costs to the same test.

What it means for investors

The rate you are offered is three numbers, not one: a reference set by the Fed and the CBUAE, a margin set by the bank, and the period over which each applies. A buyer who compares the margin, the follow on rate, the floor and the fees over five years is comparing loans. A buyer who compares first year rates is comparing advertisements.

For a buyer in the United States, the fixed exchange rate means a dollar income meets a dirham instalment at the same rate every month, though the interest rate still moves with EIBOR and, through it, with the Federal Open Market Committee. A Canadian or Latin American buyer earning in a floating currency carries exchange rate risk on every instalment as well. Our guide to UAE mortgages for US and Canadian citizens covers non resident limits and home country reporting. Whether mortgage interest on a foreign property affects your tax at home is a question for an adviser in your own country.

For an investor buying to let, a variable loan's cost can rise within a lease that fixes the rent for a year, so the stress test the Central Bank applies at 2 to 4 points above the current rate is a sensible one to run on your own cash flow. The lending limits, debt burden ratio and term that sit alongside the rate are set out in our page on UAE mortgage rules.

What we recommend

1. Check three month EIBOR on the CBUAE EIBOR rates page on the day you compare, and note the date.
2. Ask at least three banks, in writing, for the fixed rate and period, the margin over three month EIBOR that follows, any floor, and every fee, and keep each Key Facts Statement.
3. Compare the offers on cost over five years and on the balance left, under a higher and a lower EIBOR.
4. Check when the early settlement charge applies, so that you know what it costs to refinance at the end of the fixed period. The Central Bank cap is 1 per cent or AED 10,000 before VAT.
5. Confirm the current position with the authority before relying on it, because rates, fees and regulations change by circular.

Castilion Estates' mortgage desk compares UAE lenders for residents and non residents, collects offers in writing and sets them side by side on five year cost. It operates under Castilion Realty L.L.C., a RERA licensed mortgage broker; a broker cannot change a bank's credit decision or guarantee a rate. To start, apply for a mortgage assessment and Castilion Estates will confirm current offers for your case.