To grab the best mortgage deal, discuss with different lenders and find out how much you qualify for. For an initial assessment, the bank will need the borrower’s income and debt details, down payment, credit report, and other required documents.
In UAE banks have a blend of a fixed rate followed by an adjustable rate, Therefore, take the time to understand the interest rates being quoted before making a conclusion, as these rates could affect your monthly financial planning during the loan repayment cycle.
Fixed Rate Mortgage: When the rate of interest is locked for a specified period or for the whole tenure of the loan is known as Fixed Rate. Here the principal and interest amount could fluctuate every month under reducing balance methodology, but the installment persist the same, which make easy to budget the mortgage reimbursement each month for the mortgagor. One of the main leverage of getting a fixed rate loan is that if the interest rates rise the mortgagor is comfy from abrupt surges in month-to-month mortgage payments.
Key Take:
A fixed interest rate prevents the possibility that a mortgage or loan payment can substantially increase over time.
Variable rates comparable are lower than the Fixed interest rates.
Mortgagors are more likely to opt for fixed-rate loans during the low interest rates period.
In Short:
During the life of the loan, the interest rate on a fixed-rate loan stays the same. Since the mortgagors’ payments remains the same, it’s easier to budget for the future.
Connect with 4C Mortgage Consultancy certified consultant, and let them help you to plan your investment in Dubai. 4C Mortgage Consultants provide best mortgage consultancy for a resale property, new purchase property, mortgage refinance, off plan purchase, construction mortgage, project finance, commercial mortgage, buyout, equity release, Non-UAE Resident mortgage in Dubai. Follow us on Twitter, Facebook, and LinkedIn and keep yourself updated with more home buying tips.
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5 Years Fixed Rate 3.99%
3 years Fixed Rate 3.75%