2026 @ All copyrights reserved. | llms.txt
See how linking your savings account to your mortgage can cut your interest payments, shorten your loan, and save you thousands.
Enter your mortgage details and savings balance to see how much interest you can save
⚠ Calculations are illustrative estimates only. Offset mortgage products and terms vary by lender. Time saved assumes the savings balance remains constant throughout the tenure. This tool does not constitute financial advice. Speak to a Neon Mortgage advisor for a personalised assessment.
Our advisors will check current offset mortgage availability from UAE banks and compare it against standard products.
Get Expert AdviceWhy is the default rate 4.00%? Offset mortgage products may carry a slightly higher headline rate than standard mortgages. The calculator therefore uses 4.00% as its default offset rate, compared with 3.89% on our standard mortgage calculator. You can adjust the rate above to match the offer available to you.
An offset mortgage uses the same reducing-balance EMI formula as a standard mortgage, but calculates interest on your loan balance minus your offset savings balance:
Where:
Note: This calculates your EMI on the reduced balance. A simplified way to estimate the interest saved on the offset amount alone is (S × R), though this does not account for full amortization effects over the loan term — see the calculator above for a precise, tenure-adjusted estimate.
Here is a worked example based on a typical Dubai mortgage. Interest rates are illustrative.
An offset mortgage links your UAE transaction or savings account to your home loan. Rather than earning savings interest, each dirham in the account offsets your loan balance, so interest is charged on the difference. For an illustrative AED 1,000,000 mortgage at 4.5%, maintaining AED 200,000 in savings reduces the interest-bearing balance to AED 800,000. Depending on the loan term, repayment structure, and how long you maintain that balance, this could save over AED 130,000 in lifetime interest and shorten the loan while keeping your savings accessible.
A standard fixed or variable mortgage charges interest on the full loan balance, so extra cash reduces your principal only if you make a prepayment. If you keep substantial liquid reserves or receive variable commission or bonuses in Dubai, an offset mortgage may offer more value than a standard deposit account. Compare repayments with our standard mortgage calculator.
Not sure if an offset mortgage is right for you? Compare your options with our standard mortgage calculator or see how refinancing could reduce your existing mortgage costs.
1. What is an offset mortgage in the UAE?
An offset mortgage links your savings account to your mortgage. The bank calculates interest only on the difference between your outstanding loan and your savings balance. If your mortgage is AED 1.5 million and you have AED 200,000 in savings, you only pay interest on AED 1.3 million — reducing your monthly payment and total interest significantly.
2. Are offset mortgages available in the UAE?
Yes, though availability is limited compared to standard mortgages. A small number of banks in the UAE — particularly international banks — offer offset mortgage products, often to premium or high-income customers. Speak to a Neon Mortgage advisor to check current availability and whether your profile qualifies.
3. Can I still access my savings with an offset mortgage?
Yes. Your savings remain fully accessible in an offset arrangement. You do not earn interest on them, but instead benefit from paying less interest on your mortgage — which is typically more financially advantageous, particularly in a high-rate environment.
4. Who benefits most from an offset mortgage?
Offset mortgages work best for people who maintain a consistently high savings balance relative to their mortgage. If your savings are AED 300,000 or more against a AED 1.5 million mortgage, the interest reduction is substantial. They are also ideal for business owners or freelancers who hold large cash reserves between income cycles.
Our advisors will check if an offset mortgage is available for your profile and compare it to the best standard rates in the market.
Speak to a Mortgage Advisor
