Fixed Payment Mortgage

A fixed payment mortgage maintains consistent monthly installments throughout a predetermined period, typically 1-5 years in UAE, providing payment certainty by locking interest rates regardless of market fluctuations.

Fixed Period OptionsDubai Market
1 yearShortest protection, lowest premium
2 yearsCommon choice
3 yearsStandard offering
5 yearsMaximum typical, highest premium
Rate ComparisonPremium Over Variable
1-year fixed+0.25% to 0.5%
2-year fixed+0.5% to 0.75%
3-year fixed+0.75% to 1%
5-year fixed+1% to 1.5%


Decision FrameworkConsideration
Rising rate environmentFixed beneficial
Stable or falling ratesVariable preferable
Stable or falling ratesVariable may suit
Budget certainty needFixed provides security

Related Terms

Interest RateAmortization ScheduleVariable Rate MortgageInterest Rate RiskCapped Rate MortgageMortgage Term

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