{"id":612,"date":"2017-08-24T08:09:29","date_gmt":"2017-08-24T08:09:29","guid":{"rendered":"https:\/\/www.mortgagefinder.ae\/blog\/?p=612"},"modified":"2025-09-23T11:55:02","modified_gmt":"2025-09-23T11:55:02","slug":"revert-rates-consider","status":"publish","type":"post","link":"https:\/\/www.mortgagefinder.ae\/blog\/revert-rates-consider\/","title":{"rendered":"Revert rates and what to consider"},"content":{"rendered":"\n

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When taking a mortgage in the UAE, understanding the revert rate mortgage<\/strong> is crucial. Many homebuyers focus on introductory or promotional rates offered by banks, but what happens once the offer period ends? This is where the revert rate comes into play, and it can significantly affect your monthly repayments.<\/p>\n\n\n\n

In this guide, we\u2019ll explain what a revert rate mortgage is, how it works in the UAE, compare rates across banks, provide examples of repayments, and share tips to manage the transition from the introductory rate.<\/p>\n\n\n\n

What is a Revert Rate Mortgage?<\/h2>\n\n\n\n

A revert rate mortgage<\/strong> is the interest rate that applies to your home loan after the expiry of an initial discounted or fixed-rate period. Essentially, it\u2019s the standard rate your bank charges once the promotional period ends.<\/p>\n\n\n\n

For example, a bank may offer an introductory rate of 2.5% for the first 2 years on a 25-year mortgage. After two years, the rate automatically reverts<\/strong> to the bank\u2019s standard rate\u2014commonly higher\u2014unless you renegotiate or refinance.<\/p>\n\n\n\n

How Revert Rates Work in the UAE<\/h2>\n\n\n\n

Banks in the UAE typically structure mortgage products with two phases:<\/p>\n\n\n\n

  1. Introductory or discounted rate period<\/strong> \u2013 Usually between 1\u20133 years. This period offers lower interest to attract borrowers.<\/p>

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  2. Revert rate phase<\/strong> \u2013 The interest rate after the promotional period. This is often tied to the Emirates Interbank Offered Rate (EIBOR) plus a margin.<\/p> <\/li><\/ol>\n\n\n\n

    The difference between the introductory rate and the revert rate can be substantial. If borrowers are not prepared, they may see a sharp increase in monthly repayments.

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    Typical Revert Rates for UAE Mortgages<\/h2>\n\n\n\n

    Here\u2019s a table comparing some typical introductory and revert rates for leading UAE banks:<\/p>\n\n\n\n

    \n
    \n\n\n\n\n\n\n\n
    Bank<\/strong><\/td>\nIntroductory Rate<\/strong><\/td>\nDuration<\/strong><\/td>\nRevert Rate<\/strong><\/td>\nNotes<\/strong><\/td>\n<\/tr>\n
    Bank A<\/td>\n2.5%<\/td>\n2 years<\/td>\n4.25%<\/td>\nEIBOR + 2% margin<\/td>\n<\/tr>\n
    Bank B<\/td>\n2.75%<\/td>\n3 years<\/td>\n4.50%<\/td>\nFixed for first 36 months<\/td>\n<\/tr>\n
    Bank C<\/td>\n3%<\/td>\n1 year<\/td>\n4.75%<\/td>\nReverts to variable rate post 1 year<\/td>\n<\/tr>\n
    Bank D<\/td>\n2.6%<\/td>\n2 years<\/td>\n4.3%<\/td>\nIncludes processing fees in first 2 years<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n\n\n\n

    Tip:<\/strong> Always check both the promotional and revert rates when comparing mortgages to avoid surprises later.<\/p><\/blockquote>\n\n\n\n

    Examples: Monthly Repayments Before and After Revert Rate<\/h3>\n\n\n\n

    Let\u2019s consider a 2,000,000 AED mortgage over 25 years: <\/p>\n\n\n\n


    \u2022Introductory rate 2.5%<\/strong> \u2192 Monthly repayment \u2248 AED 8,970<\/span> <\/p>\n\n\n\n

    <\/p>\n\n\n\n

    \u2022Revert rate 4.25%<\/strong> \u2192 Monthly repayment \u2248 AED 10,850<\/span>

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    That\u2019s almost a 21% increase<\/strong> in monthly payments after the introductory period.
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    Planning ahead for this increase is crucial to maintain financial stability.<\/p><\/blockquote>\n\n\n\n

    Pros and Cons of a Revert Rate Mortgage
    <\/h3>\n\n\n\n

    Pros:<\/strong><\/p>\n\n\n\n