UAE homebuyers opt for fixed-rate mortgages to offset rising costs – The National

UAE homebuyers opt for fixed-rate mortgages to offset rising costs – The National

Shweta Wahi, a Canadian-Indian resident of Dubai, took out a mortgage worth Dh2 million ($544,588) about a year ago from Abu Dhabi Commercial Bank to buy her family’s first home — a four-bedroom villa in Emaar’s Dubai Hills — on the secondary market.

Ms Wahi, who works as a director of operations at Curtin University in Dubai, opted for a fixed-rate mortgage, in which the rate is locked in for three years before moving to a variable rate.

Her choice reflects a wider market trend in the UAE, with demand for fixed-rate mortgages rising significantly as homeowners seek security and consistency in their mortgage payments amid global economic instability and higher borrowing costs, as central banks raise interest rates to rein in inflation.