In a decision that matters to every UAE homebuyer, Mashreq has confirmed an important update for the country's lending market, with the headline figure standing at 18%.
Decisions taken at this level of the financial system ripple straight through to the cost of borrowing. They shape the mortgage rates banks quote, the size of monthly instalments on a home loan, and the room buyers have to negotiate on a purchase across Dubai, Abu Dhabi and the wider UAE property market.
Because UAE dirham money-market rates are anchored to this benchmark (18%), the direction of travel is something we watch closely on behalf of our clients. Even when a rate is simply held steady, the timing of a mortgage application or a refinance can still make a meaningful difference to the total cost of a loan over its lifetime.
What this means for your mortgage
Our view: with the rate at 18%, we advise buyers to model their instalments under both fixed and variable scenarios before committing to a lender. If you are weighing a new purchase or a refinance, we recommend starting with our mortgage eligibility calculator so you can see precisely how today's rates translate into a monthly payment — and we are happy to review the numbers with you before you sign anything.