The UAE mortgage market just hit something nobody is talking about.
EIBOR has been sitting at 3.79% for a while now.
For anyone with a variable rate mortgage that means your monthly payment is significantly higher than it was 3 years ago when EIBOR was close to zero.
A lot of people took variable rate mortgages in 2021 and 2022 because the rates looked amazing at the time. EIBOR plus 1% sounded great when EIBOR was 0.5%.
That same mortgage today is costing you 4.79% or more.
On a AED 1.5M loan that's roughly AED 2,800 extra every single month compared to what you were paying two years ago.
Most people just accepted it quietly. They didn't know they had options.
Here's what a lot of existing mortgage holders don't realise. You can switch banks. The process takes 2 to 3 weeks. Several banks right now are offering fixed rates starting from 3.70% with zero processing fee on buyouts.
That switch could save you AED 1,500 to 3,000 every month. Every single month.
The only reason most people don't do it is because nobody told them it was possible. Your bank certainly won't.
If your fixed rate period has ended or you're on a variable rate right now, it's worth 10 minutes to find out where you actually stand.
Happy to answer questions below or DM.