UAE Banks Cut Mortgage from 7.9% to 6%

Are you having trouble in keeping up with your monthly property mortgage and pay your real estate in UAE? If yes, this news might get you excited: UAE banks are lowering their mortgage interest rate from 7.9% to 6%.

However, there are a few things you need to understand what this really means and how you can truly take advantage of it.

Here’s what is happening in the UAE; more and more banks get more relaxed with their interest rates. This is good news to people who want to buy a property for sale in Dubai. As a way to help their customers, they are offering deals where they reduce their interest rate for usually one whole year. The mortgage interest rate has been reduced from 7.9% to 6%.

Reduced mortgage rates means current and prospective investors will be able to save up on the intial year of the mortgage by a considerable margin.

This is a huge help especially to those customers who’s whose situations have changed. Bottom line is that the whole one-year period of mortgage interest cuts allows clients to re-adjust their financial situation.

One of the reasons banks are lowering their interest rate is because of competition. Some property developers in the UAE are now playing selective roles of a bank. Developers offer their own in-house financing deals and in most cases, they provide a more attractive rate than the traditional banks. Not only that, but in-house financers require a lower down payment as opposed to what banks are asking for.

If  you are planning to switch to a new lender to take advantage of a reduced interest rate, you would need to pay an exit and early contract termination fees from your current bank. Because of the slow growth in loans and in Dubai properties as a whole, bank competition grew more intense and it is through adding a stiff exit fee that will keep their existing customers to stay.

Aside from exit fees, customers would also need to pay joining fees with the new lender and new mortgage registration fee at Dubai Land Department.

With this in mind, it would be a good idea to weigh your options and make sure that you come up saving more money rather than losing them.

Everyone wants to make the best investment possible. You can do this by getting in touch with Rocky Real Estate. If you need professional advice on whether you want to buy apartment in Dubai or a home, Rocky Real Estate is here for you. They have decades of experience and the much-needed expertise to guide you through the real estate market of Dubai. Give them a call today!