The EIBOR rate (Emirates Interbank Offered Rate) is the rate at which UAE banks lend each other dirhams, and variable Dubai mortgages are usually priced as EIBOR plus a fixed margin, often against 3-month EIBOR. When we checked on 29 October 2026, the Central Bank of the UAE (CBUAE) showed 3-month EIBOR at 4.299%, up from 3.535% on 2 January 2026. The CBUAE raised its Base Rate to 3.90% in September and held it on 28 October, after the US Federal Reserve left its rates unchanged.
- Latest 3-month EIBOR: 4.299% (the CBUAE fixing of 29 October 2026, the latest when we checked).
- CBUAE Base Rate: 3.90% since 17 September 2026, held on 28 October 2026.
- Next date to watch: the Federal Reserve meets on 8–9 December 2026. The CBUAE anchors its Base Rate to the Fed and announced its last two decisions on the Fed's decision day.
- Rule of thumb: on a 25-year loan at around 5%, each 0.25-point rise adds about AED 15 a month for every AED 100,000 borrowed.
- Switching banks: CBUAE caps the early settlement fee on a home loan at 1% of the outstanding balance or AED 10,000, whichever is less.
What is EIBOR in a mortgage?
In a Dubai mortgage, EIBOR is the benchmark part of your interest rate. A variable home loan is quoted as EIBOR plus a margin: the margin is fixed in your offer letter, while the EIBOR part is reset on the dates your contract sets, so your monthly payment moves when EIBOR does.
The CBUAE describes EIBOR as the interbank benchmark in dirhams and the reference rate for mortgages, personal loans and car loans, and publishes six tenors from overnight to one year. Home loans are commonly linked to the 3-month rate: United Arab Bank's published home loan Key Facts Statement, for example, describes its variable rate as 3-month EIBOR plus a margin, reviewed monthly. A fixed rate is fixed for an introductory period (one to five years in that statement), after which the loan moves to EIBOR plus a margin.
The CBUAE's mortgage regulation requires lenders to disclose the interest rate and how it is calculated, and bars them from changing the loan's terms during its tenor unless you agree in writing. Islamic home finance charges a profit rate instead of interest; where the contract links it to EIBOR, the same arithmetic applies (see our guide to Murabaha and Ijara home finance).
What is the EIBOR rate today?
The CBUAE publishes EIBOR fixings every business day on its EIBOR Rates page. When we checked on 29 October 2026, the latest fixing, dated 29 October, put 3-month EIBOR at 4.29872%, or 4.299% rounded to three decimals. The full set of tenors for that day is below.
| EIBOR tenor | Rate on 29 October 2026 |
|---|---|
| Overnight | 3.676% |
| 1 week | 4.129% |
| 1 month | 4.085% |
| 3 months | 4.299% |
| 6 months | 4.635% |
| 1 year | 5.028% |
To check it yourself, open the CBUAE's EIBOR Rates page and read the latest 3M figure; new fixings appear around midday on business days. Your bank resets your loan on its own schedule, so the rate that matters is the one your contract picks up on your reset date.
Why has EIBOR risen in 2026?
EIBOR follows the CBUAE's Base Rate, and the Base Rate follows the US Federal Reserve. When the Fed raised its Interest Rate on Reserve Balances (IORB) on 16 September 2026, the CBUAE raised its Base Rate by 25 basis points, from 3.65% to 3.90%, from 17 September. On 28 October both held.
The CBUAE says the Base Rate is anchored to the Fed's IORB and acts as a floor for overnight money market rates. Longer tenors such as 3-month EIBOR also move between decisions: in October 2026 the 3-month fixing ranged between 4.153% and 4.450%. Here is the year so far, from the CBUAE's own history file.
| Fixing date, 2026 | 3-month EIBOR |
|---|---|
| 2 January (first fixing of the year) | 3.535% |
| 30 January | 3.605% |
| 27 February | 3.475% |
| 31 March | 3.664% |
| 30 April | 3.728% |
| 25 May (last May fixing in the file) | 3.688% |
| 30 June | 3.819% |
| 31 July | 3.940% |
| 31 August | 3.851% |
| 30 September | 4.318% |
| 29 October (latest when we checked) | 4.299% |
From the first fixing of the year to the latest, 3-month EIBOR is up by about 0.76 of a percentage point, and more than half of that came in September, the month of the Base Rate rise.
How is EIBOR calculated?
EIBOR is calculated from rates that a panel of banks chosen by the CBUAE submits each business day. Under the CBUAE's EIBOR regulations, in force since April 2018, banks base their submissions on actual interbank transactions where they can; the highest and lowest quotes are trimmed and the rest averaged for each tenor.
The regulations allow a panel of eight to 14 banks. Without usable transactions, banks fall back on wholesale deposit data and then on documented expert judgement, and if too few banks submit there is no fixing that day.
How much does a 0.25-point rise add to your mortgage payment?
On a AED 1,000,000 loan repaid over 25 years, moving from 5.00% to 5.25% adds about AED 147 a month, taking the payment from AED 5,845.90 to AED 5,992.48. Around these rates, each 0.25 point costs roughly AED 15 a month for every AED 100,000 you borrow.
| Interest rate | Monthly payment, AED 1,000,000 over 25 years | Change against 5.00% |
|---|---|---|
| 4.75% | AED 5,701.17 | AED 144.73 less |
| 5.00% | AED 5,845.90 | None |
| 5.25% | AED 5,992.48 | AED 146.58 more |
| 5.50% | AED 6,140.87 | AED 294.97 more |
Now apply this year's move. With an illustrative margin of 1.5 points over 3-month EIBOR, the same loan priced off the 2 January fixing would carry 5.035% (AED 5,866.31 a month), and priced off the 29 October fixing 5.799% (AED 6,320.54): about AED 454 more each month, or roughly AED 5,450 a year.
These are illustrations, not quotes Margins, reset dates and any minimum rate differ by bank and are written in your offer letter. A reset recalculates the payment on the balance and term left at that point, so your own change will differ. Our mortgage calculator runs your numbers.
If you are still buying, a higher rate also lowers what you can borrow. The CBUAE caps total monthly debt repayments at 50% of income, so a bigger mortgage payment uses more of that limit. Our guides to Dubai mortgages for expats and the minimum down payment cover the loan-to-value rules, and Dubai Land Department's first-time home buyer programme offers first-time buyers preferential rates and fees from participating banks.
Should you fix or stay variable in 2026?
Neither is right for everyone. A variable rate follows EIBOR down as well as up; a fixed rate buys a known payment for a set period, after which the loan usually moves to EIBOR plus a margin. The choice depends on how long you will keep the loan, the margin after any fixed period and the cost of leaving early.
We don't forecast rates. What is known is the calendar: the Fed meets next on 8–9 December 2026, and the CBUAE announced its September and October decisions on the Fed's decision day. Test any option against the payment you could carry if rates rose, and compare offers on total cost over the years you expect to hold the loan.
| Option | What your payment does | What to check in the offer |
|---|---|---|
| Stay variable | Changes at each reset with EIBOR | The margin, how often it resets, any minimum rate |
| Fix for an initial period | Stays the same for the fixed period, then moves to EIBOR plus a margin | The margin after the fix, the early settlement terms during the fix |
| Move to another bank | Takes the new bank's rate and margin | Your current bank's early settlement fee (capped), the new bank's fees and valuation |
Can you move your mortgage to another bank, and what does it cost?
Yes. CBUAE rules let any borrower transfer a loan to another bank or finance company in the UAE, and cap the early settlement fee your current bank can charge at 1% of the outstanding balance or AED 10,000, whichever is less. A partial settlement carries the same cap.
On an AED 800,000 balance, 1% is AED 8,000; on AED 1,500,000 it would be AED 15,000, so the AED 10,000 ceiling applies. The same fee schedule caps a liability letter at AED 85, before VAT. The mortgage regulation says nothing should stop you refinancing, but it lets a lender recover its actual cost of breaking a fixed rate, so read the early settlement clause if you are in a fixed period. The new bank charges its own fees and applies the normal lending rules to the transferred loan.
Our guide to the best banks for Dubai mortgages covers valuations and bank fees, and if you are selling instead, see the cost of selling.
Frequently asked questions
What is EIBOR in a mortgage?
It is the benchmark part of a variable mortgage rate. Dubai home loans are usually priced as EIBOR plus a fixed margin, so the payment changes when EIBOR is reset on the dates in your contract.
What is the 3-month EIBOR rate today?
The CBUAE's fixing of 29 October 2026, the latest when we checked, was 4.29872% (4.299% rounded). The CBUAE publishes a new fixing each business day on its EIBOR Rates page.
Does the Central Bank's Base Rate change EIBOR?
Yes, indirectly. The Base Rate, 3.90% since 17 September 2026, is a floor for overnight rates and follows the US Federal Reserve; term rates such as 3-month EIBOR tend to move with it but also change day to day.
How much does a 0.25% rate rise add to a Dubai mortgage?
On AED 1,000,000 over 25 years, going from 5.00% to 5.25% adds about AED 147 a month. As a rule of thumb at these rates, that is about AED 15 a month per AED 100,000 borrowed.
When is the next interest rate decision?
The US Federal Reserve meets on 8–9 December 2026. The CBUAE anchors its Base Rate to the Fed and announced its September and October 2026 decisions on the Fed's decision day.
What does it cost to move my mortgage to another bank?
Your current bank can charge at most 1% of the outstanding balance or AED 10,000, whichever is less, under CBUAE rules. The new bank adds its own fees, and a fixed-rate loan may carry break costs.
Sources
- Central Bank of the UAE: EIBOR Rates (definition, daily fixings for all tenors, October 2026 figures; checked 29 October 2026)
- Central Bank of the UAE: EIBOR history, January–September 2026 (Excel) (month-end 3-month EIBOR; checked 29 October 2026)
- Central Bank of the UAE: CBUAE Maintains the Base Rate at 3.9%, 28 October 2026 (PDF) (October hold; checked 29 October 2026)
- Central Bank of the UAE: CBUAE Raises the Base Rate by 25 Basis Points, 16 September 2026 (PDF) (3.65% to 3.90% from 17 September; anchor to the Fed's IORB; checked 29 October 2026)
- Central Bank of the UAE: Regulations regarding EIBOR submissions, effective 15 April 2018 (PDF) (panel, submissions, trimming; checked 29 October 2026)
- US Federal Reserve: FOMC statement, 28 October 2026 (target range held at 3.75% to 4%; checked 29 October 2026)
- US Federal Reserve: FOMC meeting calendar (next meeting 8–9 December 2026; checked 29 October 2026)
- CBUAE Rulebook: Regulations regarding mortgage loans (disclosure, refinancing, debt burden ratio; checked 29 October 2026)
- CBUAE Rulebook: Decision 96/2019, fee caps for retail customers (home loan early and partial settlement fee cap, liability letter fee; checked 29 October 2026)
- CBUAE Rulebook: amendment to Article 20(b) of Regulation 29/2011 (transferring a loan to another bank; checked 29 October 2026)
- United Arab Bank: Home loan Key Facts Statement (PDF) (an example of 3-month EIBOR plus a margin, reviewed monthly; checked 29 October 2026)
Run your own numbers with our mortgage calculator, or talk to an agent about timing a purchase.
