# 3 month or 6 month EIBOR



## jazzzic (Apr 26, 2018)

I am buying a property in Dubai and I am financing it through mortgage.

I have 2 options:

1.
3.74% p.a. Eibor 2.55750%
( 1.1825% is the fix margin fix for full term of mortgage + 3 months EIBOR reprised on 1st day of each quarter)

2.
3.84% p.a. Eibor 2.76727%
(1.07273 is the fixed margin for full term of mortgage + 6 months EIBOR re priced on 1st Jan and 1st July semiannually)

Which one would you choose and why?

Thanx in advance!


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## Stevesolar (Dec 21, 2012)

Hi,
I would be reluctant to take out a mortgage that has any variable element to the payments - just look at the Central bank EIBOR rates for 1,3 and 6 months forward and 1 year forward - the trend is upwards.
This means your mortgage could be much more expensive in the coming years.
I would always be looking at a fixed rate mortgage - with the payment amount fixed for the term.
This could be more expensive initially - but at least you know what you would be paying year after year and this makes it easier to budget.
Cheers
Steve


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