With recent interest rate cuts in the UAE and US, many property owners are wondering if refinancing their mortgage is a good idea. This is especially relevant for those with variable rate mortgages who have been paying higher EMIs due to the rate hikes since March 2022.

Refinancing can lock in a lower fixed rate for 2-3 years, lowering monthly payments. Fixed rates are now starting at 3.79% significantly lower than last year. However, some may find that a variable rate is better if further rate cuts are expected.

Those on fixed rates should avoid refinancing for now. For those on variable rates, refinancing could reduce payments but it’s important to weigh the costs of switching against the savings. Banks will push refinancing offers in 2025 but it's not a simple decision. US bond rates remain high which could keep variable mortgage rates elevated.

Experts suggest waiting 6-12 months to see how rate cuts impact the market. Refinancing is worthwhile if the rate difference exceeds 0.75%. If the difference is small, refinancing might not be cost-effective.