Learn about property mortgage in Dubai

Apartments for rent in Dubai
Are you planning to buy a real estate in UAE particularly, in Dubai? If yes, then chances are that like most people you would like to take a loan or mortgage against the property you are planning to purchase.
 In this article, you will learn how property mortgage works, the different types of mortgage interest rates, and the conditions that affect your mortgage.

What is a property mortgage? 

A property mortgage is an agreement between a borrower and a lender. If you plan to buy Dubai properties and you don’t plan to invest the full amount, then one option would be getting a property loan.

In Dubai, usually, you would need a 20% deposit of the contract price of the property. The bank lends you the remaining 80% of the contract price. You will then pay the borrowed amount with interest on a monthly basis. The term of the loan may last from 5 to 30 years, depending on your agreement with the lender.

Types of mortgage interest rate 

One of the most important factors you need to consider when getting a loan is the interest rate. The two most common types of interest rate in home loans are fixed rate and variable rate.

Fixed rate, as its name suggests, allows you to have the same interest rate for the whole duration of your loan term. Its main advantage is that you don’t have to worry about the market’s behavior. Not only that, but budgeting and forecasting your expenses would be much easier with a fixed interest rate.

On the other hand, variable interest rate means that the interest rate of your home loan may change regularly, typically, on a yearly or half-yearly basis. Variable interest rates increase or decrease depending on how the real estate market behaves. Variable interest rate can be advantageous when the average interest rate decreases. However, if market prices rise, then your interest rate will also increase.

[...continue reading]

Interested in Real Estate in Dubai?

Check out some informative articles below:
For inquiries contact or visit us today!

Location: Dubai - United Arab Emirates

Comments

Post a Comment

Popular posts from this blog

Freehold Vs Leasehold Property In Dubai – All You Need To Know

Image
  If you’re planning to invest in   real estate Dubai , it’s best to know and understand the different types of properties that you can acquire. Knowing the difference, no matter how simple can help you decide on which type of property is more suitable for your intended purpose. What types of property can foreigners acquire? Foreigners and ex-pats may acquire properties in designated areas in Dubai. They may opt to buy a leasehold property or a  freehold property Dubai . Leasehold properties Buying a property on a leasehold basis will allow you to obtain property rights for a fixed term, a maximum of 99 years. However, if you do not buy the property’s land, the ownership will remain with the freeholder What are the pros and cons of buying a leasehold property? Advantages Since ex-pats and foreigners in Dubai are not permitted to own properties on freehold in non-designated areas, buying properties on leasehold provides more options regarding the price and area selection. ...
Read more

Dubai Metro Celebrates 10 Years

Image
It seems like it was just yesterday when the Dubai Metro first opened its doors to the public. Now, this year marks its tenth anniversary. Looking back, as one of the most ambitious projects in UAE’s transport system, it has boosted the country’s economy, increased the value of  Dubai properties , and supported sustainable growth throughout the past decade. Dubai Metro was launched on the memorable day of September 9, 2009 (9/9/9), Wednesday, at exactly 09:09:09 PM. It was headed by Dubai Roads and Transport Authority (RTA). As a special government project, The Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, graced and inaugurated the Dubai Metro, which signals a new era of the UAE’s unstoppable economic prosperity. Initially, Dubai Metro started with the Red Line , which runs from Jebel Ali to Rashidiya. It spans over 52km with 29 stations. Four of them are located underground, 24 are elevated, and one is o...
Read more

Are Apartments Still A Good Investment?

Image
Do you want to buy an apartment in Dubai? Do you wonder whether this will be a good investment or not? Are you worried that you might end up losing more rather gaining something? If yes, then make a sure investment by considering the properties featured on this post. Get to see a list of apartments for sale below and in the process, you will learn why these apartments are a good investment. Fully Furnished Studio in Liberty House DIFC Located in Dubai International Financial Centre, this apartment is strategically located in the heart of the city. Liberty House has 42 floors and it consists of high-end offices and luxury residential units. It’s a great investment because it is already fully furnished. It comes with king-size beds, love-seat-sofa, coffee table, side table, full-length mirror, reading desk, and a lot more. A balcony is available for you to enjoy the city’s skyline. More importantly it is one of the most sought after areas in Dubai and will hardly lose any ...
Read more