A mortgage conversation with a bank naturally revolves around the headline rate — the number they advertise and the number you shop. But the offer's true cost lives in the answers to questions most borrowers never ask. Here are fifteen, with what a good answer sounds like.
The rate — beyond the headline
1. What exactly is the rate after the fixed period ends? The reversion margin over EIBOR is the price you'll pay for decades. Good answer: a specific margin, in writing, competitive with what new customers get. (Why this number dominates.)
2. Which EIBOR tenor does my variable rate track, and how often does it reset? Good answer: named tenor (1-month, 3-month…), stated reset frequency, shown in the offer letter — not "it adjusts with the market."
3. Is this rate conditional on anything? Salary transfer, insurance purchase, a card or account bundle. Good answer: every condition listed, with the rate that applies if a condition later breaks. (Salary transfer strings, explained.)
The money — fees now and later
4. What is the arrangement fee, and is any waiver clawed back if I leave early? Good answer: the fee (typically about 1% of the loan, commonly capped near AED 15,000), plus a clear yes/no on clawbacks and their window.
5. What will settling early actually cost? The regulatory cap is 1% of the outstanding balance or AED 10,000, whichever is lower — the question is what sits on top: clawbacks, deferred fees. Good answer: an itemised exit scenario. (The cap in detail.)
6. What are my partial prepayment rights? Annual free allowance? Fee per prepayment? Term reduction or instalment reduction — my choice? Good answer: generous allowance, your choice of recalculation. (Why this clause is worth real money.)
7. What is the total upfront cost, itemised? Valuation (AED 2,500–3,000 plus VAT), processing, registration (0.25%), insurance first-year. Good answer: a line-item list you can compare across banks — never "about one percent, roughly."
The insurance
8. Can I use my own life insurance policy instead of yours? Good answer: yes, assigned to the bank, with the acceptance criteria stated. (Why this saves five figures.)
9. How is the insurance premium charged — added to the instalment, or financed into the loan? Good answer: charged as you go, not capitalised and accruing interest for 25 years.
The approval — how they'll size you
10. How do you treat my allowances, bonus and commission? Banks differ enormously here. Good answer: a specific counting rule — averaged over X months at Y% — not a shrug. (Why the denominator matters.)
11. What tenure will you actually give me? Age caps (generally repayment by 65 salaried / 70 self-employed) can quietly shorten the term and raise the payment. Good answer: stated end age and the exact tenure in the offer.
12. How long is this offer valid, and what conditions must be met before disbursement? Good answer: validity in writing, condition list up front — so your transfer timeline can't be ambushed. (The full offer-letter checklist.)
The relationship — years three through twenty-five
13. What happens if I miss a payment? Fees, rate consequences, reporting. Good answer: a defined process with early contact — every lender charges for missed payments; you're listening for transparency, not leniency.
14. If your rates improve for new customers, can I ask for repricing? Good answer: a retention/repricing process exists and has a named channel. Banks that say "you can always refinance elsewhere" are telling you something.
15. What does the mortgage cost in total over the full term? The single number that collapses rate, fees and insurance into one comparison. Good answer: they'll compute it. Or you can — our calculator does the total-cost math per offer in minutes.
The honest meta-point
You will notice that asking fifteen questions of four banks is sixty answers to collect and reconcile — and the banks' own staff are measured on selling their product, not comparing it with rivals. That reconciliation is, literally, what a broker is for: we hold current answers to all of these for every active lender, and we're paid by the banks, not by you. Put us to work — or take this list in alone; either way, get the answers in writing.