If you’re thinking about getting a mortgage in Dubai, you’re probably wondering: Should I go for a fixed or variable interest rate? And with rate cuts expected in 2025 or 2026, is it worth waiting? Let’s break it down!

Why Are Mortgage Rates Still High?

Over the past few years, interest rates have skyrocketed as central banks, including the UAE Central Bank, followed the US Federal Reserve in raising rates to fight inflation. While experts predicted four rate cuts in 2025, that number has now been reduced to just two—meaning mortgage rates may stay high for longer.

But don’t worry—there’s still hope! By 2026, rates could start dropping, making home financing more affordable.

Fixed vs. Variable Mortgage: Which One is Better?

Fixed Rate Mortgage

• Your interest rate stays the same for the entire loan period.
• Best for those who want stability and don’t want to worry about market changes.
• Ideal if rates stay high or increase further before any major cuts.

Variable Rate Mortgage

• Your interest rate changes based on the market.
• If rates drop in 2026, you could pay less without needing to refinance.
• Best for buyers who are comfortable with some risk and believe rates will fall.

Should You Wait to Get a Mortgage?

With only minor rate cuts expected in 2025, waiting until 2026 might get you a better deal. But waiting isn’t always the best option! Here’s what you should consider:

Affordability: A variable rate might mean lower initial payments—but could increase before rates drop.
Stability: A fixed rate ensures predictable payments, no matter what happens in the market.
Property Prices: Waiting too long could mean paying more for the same home later!
Refinancing: Already have a mortgage? You might want to refinance in 2026 when rates go lower.

Final Thoughts

If you’re buying now, a fixed rate is the safe choice.
If you’re comfortable with some risk, a variable rate could save you money in the long run.
If you can wait until 2026, you may get the best mortgage rates.

Whatever you decide, always check the latest market trends and talk to a mortgage expert before making your move!