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Fixed-Rate Mortgage
A fixed-rate mortgage is a loan where a specific interest rate is applied for a portion of the loan tenor. In the UAE it is common to see fixed-rate mortgages where interest rates are fixed for 1-7years. After the fixed-rate tenor of the loan expires a variable rate formula will kick in. E.g. 2.5% fixed for 3 years, thereafter 2.1%+3Month EIBOR
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