Rising interest rates can significantly impact mortgage payments, particularly for those with variable-rate mortgages or those looking to refinance or take out a new mortgage.
Fixed-Rate Mortgages
If you currently have a fixed-rate mortgage, rising interest rates will not affect your existing monthly payments. However, if you’re looking to refinance or take out a new mortgage, you may face higher interest rates than before, leading to higher monthly payments for the same loan amount.
Variable-Rate Mortgages
When your variable interest rate is linked to the Emirates Interbank Offered Rate (EIBOR), plus a fixed margin, your Equated Monthly Instalment (EMI) will change based on the actual EIBOR rate on the review date.
This means you’ll pay more each month for your mortgage.
