1. What is a UAE Mortgage Payment Calculator?

Definition: This calculator estimates the monthly payment for a mortgage in UAE based on loan amount, interest rate, and loan term.

Purpose: It helps prospective home buyers and investors in UAE understand their potential mortgage obligations before committing to a loan.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

Where:

• \( M \) — Monthly payment (AED)
• \( P \) — Loan principal amount (AED)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)

Explanation: The formula calculates the fixed monthly payment required to fully amortize the loan over its term.

3. Importance of Mortgage Calculation

Details: Accurate mortgage calculations help borrowers budget effectively, compare loan offers, and avoid over-committing financially.

4. Using the Calculator

Tips: Enter the loan amount in AED, annual interest rate (common UAE rates are 2.5-5.5%), and loan term in years (typically 5-25 years in UAE).

5. Frequently Asked Questions (FAQ)

Q1: Are UAE mortgage rates fixed or variable?
A: UAE offers both fixed-rate (typically 3-5 years) and variable-rate mortgages. This calculator assumes a fixed rate.

Q2: What's the maximum loan term in UAE?
A: Most UAE banks offer mortgage terms up to 25 years, with some extending to 30 years for UAE nationals.

Q3: Does this include UAE property fees?
A: No, this calculates only the mortgage payment. Additional UAE costs include 4% Dubai Land Dept fee, agency fees, and valuation fees.

Q4: What's the typical down payment in UAE?
A: Expats typically need 25% down (20% for properties >5M AED), while UAE nationals may qualify for 15-20% down payments.

Q5: How accurate is this calculator?
A: It provides a close estimate, but actual payments may vary slightly based on bank-specific fees and rounding methods.