Dubai mortgage quote: 4.02% fixed for 10 years — which comparison figure matters?

I would prefer payment certainty for a meaningful period, but I do not want the ten-year fix to distract me from the cost of leaving early. The quote is 4.02% for a Dubai purchase of about AED 2,734,000. Once fees and the applicable loan-to-value band were included, it no longer resembled the lower headline rate.

What is the most useful basis for comparing UAE offers: APR, interest during the fixed term, or all payments and fees over the years I am likely to keep the loan? I also need the monthly amount to remain comfortable. Portability, early-repayment costs and the terms after the fixed period matter because refinancing later may not be available on favourable terms.

The practical constraint is how long you may keep the loan before selling or refinancing. A ten-year projection can make one quote look attractive even when an earlier exit changes the result.

I would calculate two timelines using the same assumptions. One would run through the full fixed term; the other would end at a plausible earlier date and include fees, monthly payments and any early-repayment charge. APR can help flag an expensive quote, but the cash position and remaining balance at each exit point may alter which lender is cheaper. The early-exit terms are difficult to fix after signing, whereas your comparison period can still be adjusted now.

The two-scenario comparison makes sense, although it will only be reliable once every lender is using the same loan size and loan-to-value band. The AED 2,734,000 purchase figure by itself is not enough to determine whether lower interest compensates for larger fees.

I would ask for repayment schedules based on identical assumptions, then compare the monthly payment, fees and outstanding balance at both chosen dates. If one offer remains cheaper only when held for all ten years, you can treat it as conditional on being confident about that timeline rather than declaring it the clear winner now.

I’d be cautious about giving portability much value unless the written conditions are clear. It may sound attractive but still depend on the next property, loan size and approval at that time.

Also, the cheapest ten-year projection is not necessarily the safest choice if its monthly payment leaves little room in your budget. Compare the early-repayment wording and what happens after the fixed period, then stress-test the later payment rather than building the decision around an assumed refinance.