The monthly payment on a 2 million AED mortgage in Dubai is roughly AED 8,400 to AED 9,800 for the loan instalment alone, if you borrow 80% (AED 1.6 million) over 25 years at a rate between about 4% and 5.5%. Add mandatory life and building insurance and the real monthly cost is higher, and you also need roughly AED 90,000 to AED 150,000 in cash on day one. This guide, written on 28 October 2026, shows the arithmetic for AED 1 million, 2 million and 3 million homes so you can check any online calculator, and it covers the costs those calculators usually leave out.
Published: 29 October 2026
Quick answer: what is the monthly payment on a 2 million AED mortgage in Dubai?
About AED 8,437 a month at 3.99% and about AED 9,825 a month at 5.5%, on a AED 1.6 million loan over 25 years. That is the monthly payment on a 2 million AED mortgage in Dubai for a resident expat buying a first home, where the Central Bank (CBUAE) allows a maximum loan of 80% of the price for a home under AED 5 million. The gap between the two figures, AED 1,388 a month, comes only from the interest rate you assume.
That is why two calculators can give two different answers to the same question. The loan, the term and the formula are identical; the rate typed into the box is not. We show the full grid below and then explain what sits on top of it.
The rates used in this guide (and where they come from)
Every figure here is built off rates we checked in October 2026, not round numbers. Here is the market backdrop:
- CBUAE Base Rate: 3.90%. The Central Bank raised it by 25 basis points from 3.65% on 16 September 2026, effective 17 September, following the US Federal Reserve’s own 25 basis point increase (CBUAE announcement, reported by Zawya and Gulf News). See our explainer on what the September 2026 base rate hike means for your mortgage.
- 3-month EIBOR: about 4.4%. The CBUAE fixing was 4.39% on 8 October 2026 per Mortgease, and our own recent guides cite about 4.45% on 23 October from Al Masraf’s rate page. Published readings differ by a few hundredths because trackers pick different days.
- Advertised 3-year fixed rates: about 3.75% to 4.39%. Broker comparison tables for salaried borrowers show, for example, Dubai Islamic Bank at 3.95%, ADIB, Emirates Islamic and First Abu Dhabi Bank at 3.99%, Emirates NBD at 4.29% and HSBC at 4.39%. RAKBANK has launched a 3-year fixed from 3.89%. Sources disagree on individual banks (one lists Dubai Islamic Bank at 4.10% after an October repricing), so treat every number as indicative.
- Rate after the fixed period: about 5.3% to 5.6%. Broker tables show ADIB’s 3.99% product reverting to 1-month EIBOR plus 1.60% (5.64% on the 5 October fixing) and HSBC’s 3-year product reverting to 3-month EIBOR plus 1.09% (5.29%).
So for the grids below we use 3.99% (a typical promotional fixed rate today), 4.5% (a middle case), and 5.5% (roughly what the loan reverts to after the fixed period, and a fair guide for a bank that does not offer salary-transfer pricing). For more on how EIBOR feeds into your rate, read EIBOR explained, and see 1-year, 3-year or 5-year fixed for choosing the fixed period.
Monthly mortgage payment for a 1, 2 or 3 million dirham home
At 80% loan-to-value over 25 years, the loan instalment is about AED 4,200 to 4,900 on a AED 1M home, AED 8,400 to 9,800 on a AED 2M home, and AED 12,700 to 14,700 on a AED 3M home. The table uses the standard repayment formula, calculated by us, so you can reproduce it in any spreadsheet.
| Property price | Loan at 80% LTV | At 3.99% | At 4.5% | At 5.5% |
|---|---|---|---|---|
| AED 1,000,000 | AED 800,000 | AED 4,218 | AED 4,447 | AED 4,913 |
| AED 2,000,000 | AED 1,600,000 | AED 8,437 | AED 8,893 | AED 9,825 |
| AED 3,000,000 | AED 2,400,000 | AED 12,655 | AED 13,340 | AED 14,738 |
Assumptions: 80% LTV (CBUAE limit for an expat’s first home under AED 5 million), 25-year term (CBUAE maximum), monthly repayment (capital plus interest), rate held constant. Figures rounded to the nearest dirham.
The 80% figure is a ceiling, not a promise. If this is a second property, an off-plan purchase, or a home above AED 5 million, the maximum loan is lower and the payment changes. Our guides to second-property mortgages and mortgages above AED 5 million cover those cases.
How to check any mortgage calculator yourself
The instalment is: loan x r / (1 – (1 + r)^-n), where r is the monthly rate (annual rate divided by 12) and n is the number of months. For AED 1.6 million at 3.99% over 25 years, r = 0.003325 and n = 300, which gives AED 8,437. If a calculator shows a very different number, check three inputs: the rate it assumed, whether it applied 80% LTV or 100% of the price, and the term in years. Most disagreements come from one of those three.
Why two calculators give different answers
Most gaps come from the assumed rate, because a small rate change moves the payment more than people expect. On a AED 1.6 million loan over 25 years:
- At 3.89% the instalment is about AED 8,349.
- At 3.99% it is about AED 8,437.
- At 5.5% it is about AED 9,825.
The difference between the lowest and highest is almost AED 1,500 a month, or about AED 442,000 across the full term. Total interest on the AED 1.6 million loan is about AED 931,000 at 3.99% and about AED 1,348,000 at 5.5%, a difference of roughly AED 417,000 (our calculation).
Other reasons results differ: some tools quietly assume 100% financing, some use a 20-year term by default, some add insurance and some do not, and some show only the first fixed period rather than the reversion rate. A calculator that does not show its assumptions is not wrong by definition, but it is not comparable until you know them. Read our guide on fixed vs variable rate mortgages and the 1% rate rise stress test to see how the rate path changes your bill.
Monthly extras calculators leave out: life and property insurance
Banks in the UAE require life insurance and building (property) insurance on a mortgaged home, and both add to the monthly cost. Mortgage Finder states that life insurance is mandatory for all home loan applicants in the UAE and that banks will not approve a loan without an active policy.
The published cost estimates vary widely, which is itself a finding:
- Life insurance: Mortgage Compare gives 0.20% to 0.60% of the outstanding balance per year. Mortgage Finder’s 2025 estimates are AED 200 to 350 a month for a AED 1 million loan and AED 400 to 700 a month for AED 2 million. Some insurers advertise standalone cover from far lower starting prices, and bank-bundled or decreasing-term cover can be cheaper. Age, health, smoking status and loan size drive the quote.
- Building insurance: Mortgage Compare puts it at 0.03% to 0.05% of insured value per year, about AED 600 to 1,000 a year on a AED 2 million property. Another broker’s guide cites 0.05% to 0.1%. The bank only requires cover for the building structure; contents cover is separate and optional.
Using the percentage ranges above on our loan sizes, we get the following indicative monthly add-ons (our arithmetic, not a quote):
| Property price | Life insurance (0.20% to 0.60% of loan per year) | Building insurance (0.03% to 0.10% of price per year) | Combined extra per month |
|---|---|---|---|
| AED 1,000,000 | AED 133 to 400 | AED 25 to 83 | AED 158 to 483 |
| AED 2,000,000 | AED 267 to 800 | AED 50 to 167 | AED 317 to 967 |
| AED 3,000,000 | AED 400 to 1,200 | AED 75 to 250 | AED 475 to 1,450 |
So on a AED 2 million home, a realistic all-in monthly figure is not AED 8,437 to 9,825 but roughly AED 8,750 to 10,800, depending on your rate and insurance quote. Life cover on a reducing balance gets cheaper as the loan shrinks, so the early years cost the most. If a policy lapses, the bank can place cover at your expense, often at a much higher premium, so keep it active. For the full picture, read our guide on mortgage life and property insurance in the UAE.
Cash you need on day one: the upfront costs
On a AED 2 million home, expect about AED 91,000 to 107,000 in fees on top of your AED 400,000 deposit, and up to about AED 150,000 if you also pay a buyer’s agent. These are not part of the monthly payment, but they decide whether you can buy at all. Here is the maths for each price band, using the main fees consistent across the broker sources we checked.
| Cost item | AED 1M home | AED 2M home | AED 3M home |
|---|---|---|---|
| Deposit (20%) | AED 200,000 | AED 400,000 | AED 600,000 |
| DLD transfer fee (4% of price) | AED 40,000 | AED 80,000 | AED 120,000 |
| DLD admin fee | AED 4,200 | AED 4,200 | AED 4,200 |
| Mortgage registration (0.25% of loan + AED 290) | AED 2,290 | AED 4,290 | AED 6,290 |
| Valuation fee (indicative) | AED 3,000 | AED 3,000 | AED 3,000 |
| Bank arrangement fee (0% to 1% of loan) | AED 0 to 8,000 | AED 0 to 16,000 | AED 0 to 24,000 |
| Fees before agent | AED 49,490 to 57,490 | AED 91,490 to 107,490 | AED 133,490 to 157,490 |
| Agent commission (2% + 5% VAT, if used) | AED 21,000 | AED 42,000 | AED 63,000 |
| Fees with agent | AED 70,490 to 78,490 | AED 133,490 to 149,490 | AED 196,490 to 220,490 |
The 4% DLD fee, the 0.25% plus AED 290 mortgage registration fee and the 2% agent commission are consistent across the broker and advisory sources we checked, but the smaller fixed charges (admin fee, valuation, trustee office fees) vary by source and by transaction, so treat them as indicative and confirm on your offer letter. One source also lists a registration trustee fee of AED 4,200 for properties above AED 500,000 that we have not included separately, and the DLD admin fee for off-plan properties is different. Buying costs run to about 4.4% to 4.9% of the price before an agent and about 7.3% to 7.8% with one, which is why we advise budgeting 6% to 8% on top of the deposit. See the real cost of buying property in Dubai and down payment rules for the full list.
What income do you need for these payments?
To qualify for a AED 1.6 million loan you need roughly AED 17,000 a month at the actual rate, and closer to AED 25,000 once the bank applies its stress test. The CBUAE debt burden ratio (DBR) says all your monthly debt payments, including the new mortgage, cannot exceed 50% of gross monthly income (CBUAE Rulebook, Article 3, Important Ratios). Doubling the instalment gives the minimum income if you have no other debts:
| Property price | Income needed at 3.99% | At 5.5% | At an 8% stress rate |
|---|---|---|---|
| AED 1,000,000 | AED 8,437 | AED 9,825 | AED 12,349 |
| AED 2,000,000 | AED 16,873 | AED 19,651 | AED 24,698 |
| AED 3,000,000 | AED 25,310 | AED 29,476 | AED 37,047 |
Banks do not only test the real rate. They test affordability at a higher stress rate; in our minimum salary guide we used about 7.3% to 8% and showed that salary needed is much higher than the sticker payment suggests. The 8% column above is illustrative and every bank sets its own policy. Any existing car loan, personal loan or credit card limit reduces what you can borrow, which is explained in which debts to clear first. Income is only half the test: you also need the cash, which for a AED 2 million home is the AED 400,000 deposit plus fees, as the upfront table above shows.
What the payment looks like when the fixed period ends
The 3.99% you see today usually lasts one to five years, then the loan reverts to EIBOR plus a margin of roughly 1.1% to 1.6%, which today means about 5.3% to 5.6%. On a AED 1.6 million loan, a move from 3.99% to 5.5% adds about AED 1,388 a month, and the remaining balance after three years is slightly lower than the original loan, so the real jump is a little smaller than the headline. That is why the best question for any bank is not “what is your rate” but “what is my rate after the fixed period and what is the margin”. Our guide to what happens when a fixed rate mortgage ends walks through your options, and 25-year vs 15-year terms shows how shortening the term changes the instalment.
A worked example: AED 2 million home, step by step
A resident expat buying a AED 2 million first home with 20% down should plan for about AED 8,750 to 10,800 a month and AED 491,000 to 507,000 in cash. Put the pieces together:
- Price AED 2,000,000. Deposit 20% = AED 400,000. Loan = AED 1,600,000.
- Instalment at 3.99% for 25 years = AED 8,437. At 5.5% = AED 9,825.
- Life insurance, indicative: AED 267 to 800 a month. Building insurance, indicative: AED 50 to 167 a month.
- All-in monthly: about AED 8,754 to 10,792 (AED 8,437 + 317 up to AED 9,825 + 967).
- Upfront fees before agent: AED 91,490 to 107,490. Cash needed with the deposit: AED 491,490 to 507,490.
- Income needed under the 50% DBR at the actual rate: about AED 16,900 to 19,700 a month, higher under the bank’s stress test.
If those numbers make the purchase feel tight, the levers are a longer fixed period, a larger deposit, salary transfer to the lending bank, a lower price band or a co-borrower. Our mortgage eligibility guide and salary transfer guide explain each lever.
Frequently asked questions
What is the monthly payment on a 2 million AED mortgage in Dubai?
About AED 8,437 a month at 3.99% and AED 9,825 at 5.5% for the AED 1.6 million loan (80% LTV, 25 years). With life and building insurance added, plan for roughly AED 8,750 to 10,800 a month.
How much is the monthly payment on a 1 million AED mortgage in Dubai?
About AED 4,218 to 4,913 a month on an AED 800,000 loan at 80% LTV, 25 years, between 3.99% and 5.5%. Insurance adds roughly AED 158 to 483 a month on our indicative ranges.
How much is the monthly payment on a 3 million AED mortgage in Dubai?
About AED 12,655 to 14,738 a month on an AED 2.4 million loan at 80% LTV, 25 years, between 3.99% and 5.5%, plus roughly AED 475 to 1,450 for insurance.
Why does my bank quote a different payment from the online calculator?
Usually because of the rate, the term, the loan-to-value assumed, or whether insurance and fees are included. Ask the bank for its Key Facts Statement, which sets out the actual rate, term, fees and reversion terms for your loan.
Is the interest rate the same for the whole 25 years?
No for most borrowers. A fixed rate typically applies for one to five years, then the loan reverts to a variable rate linked to EIBOR plus a margin. Variable loans move with EIBOR from the start. See fixed vs variable.
Is life insurance compulsory on a UAE home loan?
Yes, Mortgage Finder states it is mandatory for all home loan applicants, and banks do not approve a loan without it. Cost depends on your age, health, loan size and the policy structure, so get quotes. Details are in our life and property insurance guide.
How much cash do I need to buy a AED 2 million property with a mortgage?
About AED 491,000 to 507,000 if you buy without an agent: AED 400,000 deposit plus about AED 91,000 to 107,000 in fees. With a 2% plus VAT agent commission, about AED 533,000 to 549,000. See cash to close.
What salary do I need for a AED 1.6 million mortgage?
Under the 50% debt burden ratio, about AED 17,000 a month at 3.99% with no other debts, and about AED 25,000 once a bank applies an 8% stress rate. Existing debts raise the figure.
Does the CBUAE base rate set my mortgage payment?
Not directly. Most UAE mortgages are priced off EIBOR plus a bank margin. The Base Rate, now 3.90% since 17 September 2026, signals direction and EIBOR tends to follow it. See EIBOR explained.
Can I reduce the monthly payment after I buy?
You can sometimes refinance to a lower rate, make partial prepayments, or lengthen the remaining term, each with its own costs. Our guide to mortgage refinancing explains when switching is worth it.
Should I get pre-approved before using a calculator?
A calculator estimates; pre-approval confirms what a bank will lend you. Read mortgage pre-approval in the UAE for documents and timing.
How Al Ghaf can help
Al Ghaf Mortgage offers two services: Mortgage Consulting and Banking Consultation. If you want to turn these price bands into your own numbers, we can help you work out the loan, the realistic monthly cost with insurance, the cash needed and the income a bank is likely to ask for, then prepare the right questions for your lender. We do not promise any bank’s rate or approval, because every offer depends on your profile and the bank’s policy at the time.
To talk it through, use our Contact Us page or message us directly on WhatsApp.
Message Al Ghaf on WhatsApp: +971 50 127 6925
This article is general information, not financial or legal advice. Rules, bank policies and rates change. Confirm all terms with your lender before acting.
If you are buying through a company or leasing out property, this guide to UAE corporate tax on leases and rent expense explains how lease liabilities and rent deductions are treated.
For a closer look at what lenders will actually approve, see this guide on whether a foreigner can get a mortgage in Dubai and which LTV cap banks apply.