Mortgage Calculator

To extract real value, the calculator should be used as part of a broader process.

STEP 1: ESTABLISH A BASELINE

Use the calculator to understand:

• Approximate monthly repayment
• General affordability range

STEP 2: STRESS-TEST YOUR NUMBERS

Adjust inputs to test:

• Higher interest rates
• Different deposit levels
• Shorter loan terms

This provides a more realistic view of risk.

STEP 3: ALIGN WITH YOUR OBJECTIVE

For end-users:

• Focus on affordability and stability

For investors:

• Focus on yield vs cost of financing

STEP 4: VALIDATE WITH REAL LENDER TERMS

Calculator outputs should always be validated against actual bank offers.

WHAT STRESS-TESTING ACTUALLY SHOWS

The single most useful thing this page can do is show how fragile a monthly payment is. Hold everything else at the defaults above and move one slider at a time.

Term. The same AED 1,200,000 loan at 4.5% costs about AED 7,592 a month over 20 years, AED 6,670 over 25 and AED 6,080 over 30. The thirty-year schedule is roughly AED 1,500 a month cheaper than the twenty-year one — and costs approximately AED 989,000 in interest against AED 622,000. Longer terms reduce the monthly payment and increase the total cost; shorter terms do the reverse.

Rate. Hold the term at 25 years and the same loan costs about AED 6,670 a month at 4.5%, AED 7,369 at 5.5% and AED 8,102 at 6.5%. Two points of rate is roughly AED 1,430 a month, and around AED 430,000 more interest across the term.

Deposit. A larger deposit reduces the loan and therefore both the payment and the loan-to-value. The slider runs from 15% to 60% so you can find the point at which the monthly commitment becomes comfortable rather than merely possible.

Every figure above is this calculator’s own formula run on its own default inputs — AED 1,500,000 at a 20% deposit — not market data.

PROPERTY PRICE

This is the total purchase price of the property.

It is important to note that banks will lend based on either the purchase price or the valuation — whichever is lower. A valuation that comes in under the agreed price does not reduce what you pay; it increases the cash you have to find.

DEPOSIT (DOWN PAYMENT)

The deposit is the portion of the property price paid upfront.

A higher deposit reduces loan size and monthly repayments.

Deposit requirements differ between residents and non-residents, with non-resident buyers generally asked for materially more, and they also vary by price and by whether this is a first mortgage. Confirm your own maximum loan-to-value with your bank or broker rather than planning around a slider position.

INTEREST RATE

Interest rates are usually entered as a fixed percentage.

However, in reality:

• Fixed rates are temporary (1–5 years)
• Loans typically revert to variable rates

This means calculator outputs may not reflect long-term costs accurately. A calculation that holds one rate for twenty-five years will understate the long-term cost whenever rates rise.

LOAN TERM

Loan terms in Dubai commonly extend up to 25 years.

Longer terms reduce monthly payments but increase total interest paid. Shorter terms increase monthly payments but reduce overall cost.

The slider on this page runs from 5 to 30 years so you can see the whole shape of the curve — but check the maximum term a lender will actually write for you, and remember that term is usually capped by age at maturity as well as by policy.

It is for the buyer working out what a purchase price translates to as a monthly commitment; for the investor comparing the cost of debt against the yield on an asset; for anyone about to speak to a lender who wants to arrive with a stress-tested position rather than a hopeful one; and for owners weighing whether a shorter term or a larger deposit is worth the cash it consumes.

It is a starting point for planning, not a substitute for advice from a qualified mortgage adviser or for a formal offer from a bank.