Comparing a 4.25% mortgage quote on an AED 4,165,000 Dubai purchase

[GreenSignal]

Choosing the lender is the next decision I need to make, and the cheapest-looking quote is not necessarily the most flexible one. For a Dubai purchase of about AED 4,165,000, I have a quote described as 4.25% fixed over a 30-year mortgage. Once fees and the applicable loan-to-value band are included, it no longer resembles the lower advertised offer.

How would recent UAE borrowers put competing quotes on the same footing: APR, cost during the guaranteed-rate period, or all payments and charges over the likely holding period? I am checking early-repayment conditions, portability and what happens when the rate resets. The monthly figures are close, so an expensive exit or a limited portability clause could decide it.

 

[MaeDale]

The wording around the 30 years would make me pause first. It may describe the repayment term rather than a rate guaranteed for that entire time, and that distinction changes the comparison considerably.

I would choose a realistic date by which you might sell or refinance, then add the payments, arrangement charge and any known exit costs up to that point. APR still gives you a useful common reference, but it should sit beside that shorter calculation rather than replace it. Asking every lender to confirm the fixed-rate end date in writing would clear up the immediate ambiguity.

 

[AwakeRiver]

I would not give portability too much value unless the wording clearly explains when and how it applies. A feature can sound attractive but still be less useful than straightforward early-repayment terms.

Ask each lender for the same loan amount, loan-to-value and comparison period, then put fees and payments into one table. Run a second version assuming you refinance or sell earlier than planned. That should expose whether the lower headline rate actually wins.