information & services guide
Real estate in Dubai often sport panoramic landscape view and
great amenities but at the same time, they are quite expensive and
not accessible for all. Though the situation is changing with the
passage of time, it is still tough for a mediocre person to
purchase a lavish property. This is the reason why the buyers are
looking forward to mortgages that allow them to make hefty down
payment for the properties. You can take the mortgage from various
financial institutions or from private banks.
Laws for Dubai mortgages
The newly introduced rules and property laws have facilitated the
mortgage market in Dubai. Before this, the foreign people planning
to reside in Dubai were only entitled to a 99-year lease. Now they
are free to take the mortgages from the international as well as
local banks. The number of mortgage lenders has increased in leaps
and bounds in the past 4 years, which is definitely a good gesture
for the foreign nationals who plan to buy ownership properties in
Dubai. This increase has taken place after the introduction of
“Freehold Property market” by the Dubai government. The confidence
level of the lenders and the construction groups received a boost
after the introduction of this law. This is a common preference of
property builder and developers from all over the world that they
like to work in the countries where the rules are simple and
uncomplicated.
Growth of the Dubai mortgage market
The changed mortgage situation with a rapid upsurge in the market
is the result of the new law simplifying the conditions. The banks
who were scared to enter the Dubai market are taking huge interest
in the same. In fact, many of the international banks and finance
institutions are flocking together creating a tough competition in
the market. This is indeed beneficial for the borrowers. With
numerous schemes and offers, they can easily find the best deal
available in the mortgage market. The banks are providing
excellent interest rates to outperform their contenders. As a
borrower, you should keep watching the introductory offers, which
often prove to be extremely profitable.
Interest rates for Dubai mortgages
Mortgages are provided for big purchases like cars and houses. You
can take the required amount of money from a lender for a certain
time span and keep paying interest until the entire amount is paid
off. Hence this is sort of secured loan where the safety of the
lender’s money is ensured by the collateral. The lender holds the
property documents during the mortgage period. There are two types
of interest rates payable on the Dubai mortgages. You can either
go for the floating interest, which means the rate will change
with the fluctuation of the market values and conditions. However,
the other type is fixed rate that remains same all through out the
period. Quite obviously, the floating rate is lower than the fixed
rates. The borrowers are free to select the rate according to
their preferences.
How to select the right mortgage scheme in Dubai?
This is not easy to select the right mortgage scheme from the
offers made available by the various lenders. Often the borrowers
get confused because they have too many options in front of them.
Now many skilled and proficient mortgage brokers can assist you
while selecting the mortgages. They know each and everything about
the interests, schemes and additional benefits of the mortgages
and suggest schemes that will fit in your requirement.
Hence, the conclusion is that the mortgage market in Dubai is
prospering and this is a good time for people interested in real
estate purchase.