Mortgage facilities in the UAE include fixed-rate, variable-rate (EIBOR-linked), Islamic (Ijara/Murabaha), and offset options, with typical 25-year terms and 50% debt-to-income limits. Common products cater to residents and non-residents for buying, investing, or refinancing property. Key types include:
Fixed-Rate Mortgages: The interest rate remains the same for a set period (1, 3, or 5 years), offering stability.
Variable-Rate Mortgages: Rates fluctuate based on the Emirates Interbank Offered Rate (EIBOR).
Islamic Financing: Sharia-compliant, profit-based products (often Ijara or Murabaha) instead of interest-based loans.
Offset Mortgage: Allows linking savings accounts to the mortgage to reduce the interest payable.
Remortgage: Switching a current mortgage to a new bank for better rates.
Non-Resident Mortgage: Specialized loans for foreigners living outside the UAE.
Buy-to-Let/Investment Mortgage: Designed for investors purchasing property for rental income.
Off-Plan/Construction Finance: Financing specifically for properties under development.
Interest-Only Mortgage: Allows paying only the interest for a set period, leaving the principal balance.
Commercial Mortgage: For business properties, including warehouses or office spaces.
Loan-to-Value (LTV): First-time buyers may get up to 80% LTV, while subsequent properties or non-residents usually face stricter, lower LTV limits.
Term: Mortgages are usually capped at 25 years.
Fees: Banks charge processing fees, early settlement fees and valuation fees.
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