Monthly Payment
The monthly payment is the fixed or variable amount paid to service mortgage debt, comprising principal reduction and interest charges calculated based on loan amount, interest rate, and term length.
| Payment Components | Allocation |
| Principal | Debt reduction |
| Interest | Borrowing cost |
| Early payments | Mostly interest |
| Late payments | Mostly principal |
| Payment Calculation Examples | AED 2M Loan at Various Terms |
| 15 years at 5% | AED 15,823 monthly |
| 20 years at 5% | AED 13,200 monthly |
| 25 years at 5% | AED 11,684 monthly |
| 25 years at 6% | AED 12,886 monthly |
| Affordability Guideline | Recommendation |
| Maximum payment | 30-35% of gross income |
| Comfortable payment | 25-28% of gross income |
| Including all debt | 40-45% maximum DBR |
Related Terms
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