What is the monthly payment on a AED 2.7M townhouse?

About AED 12,000 a month at 4.5% over 25 years, with a 20% down payment (a loan of AED 2.16M). At 3.75% it is about AED 11,100; at 5% about AED 12,600.

1. The loan, not the price, sets the paymentWith 20% down on AED 2.7M you borrow AED 2.16M. A larger down payment lowers the monthly amount directly.
2. The rate mattersOn the same AED 2.16M over 25 years: about AED 11,105 at 3.75%, AED 12,006 at 4.5%, AED 12,627 at 5% and AED 13,264 at 5.5%.
3. So does the termThe maximum term is 25 years. Over 20 years at 4.5% the payment rises to about AED 13,665, but you pay less interest in total.
4. The income banks expectBanks cap all monthly obligations at 50% of income. A AED 12,006 payment therefore needs about AED 24,000 a month, before any other loans or cards.
5. Fixed or variableCompare the fixed period, what the rate becomes after it, and the early-settlement fee. Ask each bank for these in writing.
6. InsuranceBanks usually require life and property insurance with a mortgage. Include it when you compare offers.

More guides

• How much cash do you need to buy a townhouse in Dubai?
• 6 steps to buy a ready villa in Dubai
• 8 things to check in a villa before you pay
• End-unit or middle-unit townhouse?
• Choose the community before the home
• 5 rules for negotiating a villa price
• Documents banks ask for
• Service charges: 4 questions to ask before buying