Important Factor to Consider: Mortgage Rates UAE

Mortgage Rates UAE

Important Factor to Consider: Mortgage Rates UAE

Important Factor to Consider: Mortgage Rates UAE

UAE is known as a city that has lots to offer as far as career options and opportunities are concerned. UAE is known for having some of the renowned business centers including Media City, Internet City and many more. In hope of getting better career opportunities and earning more money more and more people migrate to UAE from all over the World. People working on a long-term basis have one more agenda in their mind and that is to have a house of their own.  Mortgage loans play a very important role in the process of buying a house. Prices of the house are generally quite high and hence it becomes difficult for the buyer to make the entire payment on their own. Applying for mortgage loans is the best option in such cases.

Getting a mortgage for a house depends on various factors.  The most important factor which should be considered on the priority basis before applying for a mortgage loan is mortgage rates UAE. There are many lenders all across UAE who are ready to give cheapest mortgage rates UAE. The mortgage industry of UAE is quite small as a comparison to the mortgage industry of other cities which are known for real estate investments. Every buyer aims at getting a loan at the best mortgage rates possible. For this buyer needs to do an extensive study of mortgage rates UAE and should compare mortgage rates charges by different vendors. On basis of the research, the borrower should select a mortgage lender who is offering best mortgage rates in UAE.  Internet plays a very important role as far as research related to mortgage rates UAE is concerned. There are various sites that based on the mortgage rates UAE. These sites besides having mortgage calculators also have details such as ongoing mortgage rates in UAE, which all lenders are known for providing the best mortgage rates in UAE, what all documents are required and information regarding any change in mortgage rates UAE is also available on these sites.

A Borrower should always be very careful before applying for the mortgage loan as it is a long-term commitment. Most of the lasts for 20-25 years and the loan provider lends the money which can be 80 percent or even more of the total valuation of the house. As a result, the amount is quite high, thus it becomes even more important for a buyer to do a thorough research on the mortgage rates UAE as this will decide what amount the borrower has to pay to the lender. Higher the mortgage rates higher will the repay amount; hence borrower should always look for the lender who is offering the best mortgage rates in UAE.

Mortgage rates UAE vary from lender to lender. The mortgage rates UAE generally ranges from 2.5%-5%. The mortgage lenders of UAE have various offers as far as Mortgage rates UAE are concerned. Some lenders have interest only payback scheme. As per this scheme, the borrower has to pay interest based on Mortgage rates UAE for earlier years of taking of the loan. It’s a big benefit for the borrower as it results in the reduction in the repayment installments.  Moreover in some cases lender may charge lower mortgage rates for a particular period (generally a year) and after that, the mortgage rates are revised.

As far as Mortgage rates UAE are concerned, there are two types of mortgage rates:

  1. Fixed Mortgage rates UAE: In this kind of Mortgage rates UAE, the mortgage rates are fixed, as a result, the borrower has to pay the same amount of Mortgage rates UAE up to a pre-decided period. This period may range from 1-5 years, once the term gets over the mortgage rates are revised as per the ongoing Mortgage rates UAE. In some cases, a lender may charge the same mortgage rates throughout the loan repayment period. This becomes beneficial for borrower as the borrower can budget his monthly expenditures on basis of the fixed installments and this also saves borrower from any kind of fluctuation in Mortgage rates UAE. Especially if the Mortgage rates UAE fluctuates towards the higher side. However same can have a negative effect if the Mortgage rates UAE fluctuates towards the lower side.
  2. Variable Mortgage rates UAE: In these kinds of mortgage loans the mortgage rates are not fixed and keep on varying as per the changes in Mortgage rates UAE. As a result, there is a fluctuation in the mortgage rates throughout the loan tenure. It’s a kind of gamble in which a borrower gets benefitted if the Mortgage rates UAE market decreases and a borrower may have to face a loss if the Mortgage rates UAE market increases as compared to the mortgage rates at which buyer has taken the loan. These kinds of mortgage rates are generally taken by borrowers who are financially stable to face the fluctuations in the loan repayments. In case of Variable Mortgage rates UAE, it becomes very difficult for the borrower to plan his monthly budget as well as other finances.

In some cases, lender and borrower may agree for going for fixed Mortgage rates UAE for a particular period of time and after that, the mortgage rates are changed to Variable Mortgage rates UAE. The Variable Mortgage rates UAE are directly connected to LIBOR. Emirates Interbank Offered Rate is set by The UAE Central Bank. The most common deal which is signed between borrower and lender is of 2-5 year of fixed Mortgage rates UAE and the mortgage rate is around 4.99%.

The rules and regulations of offering Mortgage rates UAE are different in case of foreign expats.  The risk is higher in case of expats as a lender always has a fear in the back of mind that the foreign expat may return back to his country without clearing the loan. Hence, the term for which mortgage loan is given is lesser in case of expats. Banks, as well as, lender follow a strict procedure to check the credibility of a foreign expat who has applied for the loan. In case of expats Mortgage rates, UAE is based on factors such as age, income, kind of job etc.

In order to promote real estate industry and to attract investors from all over the World The UAE Central Bank keeps on making amendments to the Mortgage rates UAE. A borrower or an interested borrower should always keep himself up-to-date with the ongoing changes in the policies related to the Mortgage rates UAE.


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