Some UAE lenders allow an interest-only window (typically 3–5 years) before reverting to standard amortization. See your two-stage EMI and the extra interest you'll pay.
AED 2,000,000
4.50%
5 yrs
25 yrs
Interest-Only EMI
AED 7,500
Then AED 12,653 per month for 20 years.
Standard EMI (no IO)AED 11,117
Total Interest (IO loan)AED 1,486,717
Total Interest (Standard)AED 1,334,995
Extra Interest CostAED 151,722
Things to weigh in the UAE
Interest-only mortgages free up cash early but cost more in total interest.
Typically offered by private banks for high-net-worth or investment buyers.
After the IO window, your EMI jumps significantly — stress-test affordability now.
DBR rules still apply: lenders may assess you on the post-IO EMI, not the lower IO payment.