Mortgage rates stabilise at 7-8%

Mortgage rates in UAE have stabilised at 7-8% which were the same levels in 2007 and 2008. The first quarter of previous year 2009 saw rates of 9-10%. The current rates are highly unlikely to go down further because the cost of funding remains high.

Many banks are offering various offers but the rate remains between 7.25 to 7.75%. Interest rates could go up to 8.5% depending upon loan-to-value ratio, but the average rate remains less than 8%.  Many Analysts say that interest rates in UAE are still higher compared to those in US. Rates in US are about 5.2% for a 15 year loan and 5.6% for a 30 year loan.