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EIBOR reflects the cost of borrowing money in the interbank market. It’s seen as an important indicator of the overall health of the UAE’s banking system and economy.
The EIBOR rate is the daily reference rate or benchmark interest rate, meaning it's used as a general reference by borrowers and lenders for transactions and setting interest rates. The EIBOR can be used for loans such as mortgages, personal and car loans.
If you’re wanting to apply for a mortgage or another type of loan, the EIBOR can affect how interest rates are calculated.
Many variable-rate mortgage products, such as the Variable 3-month EIBOR home loan, are linked to the rate. When the EIBOR rises or falls, the interest rate on these mortgages also fluctuates, which can impact your monthly repayments.
Some lenders use it to add a spread (also known as a fixed margin percentage) to the EIBOR to work out the total interest rate for mortgage payments.
Understanding how EIBOR rates work and how they could affect you can help you make a better decision when looking into mortgage or other loan options.
We'll guide you through the application process, from getting an Approval in Principle to applying for your mortgage.
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