Usually not. In the UAE, Islamic home finance profit rates are close to conventional mortgage rates, and the same Central Bank limits apply.
- Structure: rent-to-own (Ijara) or cost-plus (Murabaha) instead of interest
- Rates: fixed and variable profit rates in a similar range
- Limits: the same LTV caps and 50% debt limit
- Early settlement: the same cap of 1% or AED 10,000
- Insurance: Takaful instead of conventional life cover
Compare the total cost, not the label.
Related: Islamic vs conventional guide
