Dubai mortgage quote: 6.73% fixed for 5 years on AED 4,147,000 purchase

[MaraSage]

Getting the comparison period wrong could make this mortgage look cheaper than it is. The offer is 6.73% fixed for five years on a Dubai purchase of about AED 4,147,000, and the final pricing depends on both upfront charges and the loan-to-value bracket.

My first priority is a payment I can still afford if circumstances change. Comparing only the five fixed years is tempting, but it leaves the follow-on rate unresolved; assuming I will refinance creates a different risk rather than removing it.

Would you compare lenders using cash paid over five years, the principal left at the end, and a separate higher-rate reset scenario? I also want the arrangement costs shown individually and the early-repayment charge tested against a possible sale or refinance before year five. What other figure would materially change that comparison?

 

[drawTheField]

I’d compare total cash paid over the period you realistically expect to keep that mortgage. Include monthly payments, arrangement fees and any mandatory upfront costs, then separate principal repayment from the true cost. APR is helpful for an initial comparison, but it may not reflect your plans if you sell or refinance around the end of the five years.

 

[sketchesAndKite]

What loan amount and loan-to-value tier does the quote assume? Without those, the headline percentage is hard to judge. I would also ask for the monthly payment during the fixed period and an illustration of what happens after the reset. A payment that is comfortable at 6.73% may look different under a higher follow-on rate.

 

[slow_porch]

I wouldn’t dismiss APR quite so quickly. It can expose a low advertised rate that is offset by fees, although it still depends on the lender’s assumptions and comparison period. Run at least two scenarios: keeping the loan beyond year five, and exiting at year five. For portability, ask exactly what happens if the next property or loan size differs; the word alone does not guarantee a frictionless transfer.

 

[MaraSage]

That helps. I was mixing a whole-loan comparison with a likely five-year decision point. I’ll request a side-by-side schedule showing payments, fees, principal remaining after five years, the post-fix basis, and the cost of refinancing or repaying at that point. I’ll also get the portability conditions in writing rather than treating it as a simple yes/no feature.