Guide to Mortgage Loans for Non-Resident Investors in Dubai

Are you interested in Dubai for investment? Congratulations Dubai is the right choice for investment.. By investing in Dubai you can make your lifestyle more luxurious and comfortable. You can buy the properties in easy installments at your convenience. The best way to buy a property in this city is by getting Mortgage Loan In Dubai that will be useful for you. If you get any issue in obtaining a mortgage loan you can connect with the specialists for the same. In this blog, we explain the process of getting a loan and the types of getting a loan in this thriving city.

What is a Mortgage loan in Dubai?

The mortgage loan is a secured loan that helps and allows you to invest in property. Owning a home in Dubai is still a dream for many and it may take some time to become commonplace. However, with the continued growth and development of the city, we can expect home ownership to become more common in the coming years. Additionally, many top banks in Dubai offer home loans to eligible applicants. You can customize your loan installment according to your budget, which will help you take the loan. You can also check the list of best banks in Dubai and apply for a loan with a low interest rate. The mortgage loan rate in Dubai is lower than in other loans.

Types of Mortgage loan in Dubai

Homeowners can choose loan types from various types of loans but before taking any type of loan you must know about mortgage loans. You must know the pros and cons of the loan before choosing any suitable loan according to your needs and a good broker also helps with it. So a good broker and a suitable loan type are important before buying property in Dubai.

Fixed-rate home loan

A fixed-rate loan is a type of home loan in which the rate of interest remains the same throughout the tenure and your rate of interest gets set before you take a loan in this loan therefore you pay the same amount of loan every month. Usually, the fixed rate home loan time is under (2 to 5) years if the property owner is not able to pay the mortgage loan in a fixed time their interest rate changes to a higher rate.

Discount rate mortgage loan

The discount rate is one of the best suggestions for a mortgage loan. This property holder offers this first time to the buyer, it is a type of mortgage in Dubai in which the buyer receives a discount on the lender’s standard interest rate. Interest rates are less than EIBOR (EmiratesInterbank offered rates). For example, if your lender's interest is 4% you receive 1%of discount, hence your interest rate is 3% if the lender’s base rate increases to 7% your interest rate also increases but you are lucky if the lender’s rate drops you take benefit from it .you apply discount rate for 2 to 5 years period after this your interest rate depends on lender’s different rate but sometimes “lifetime” discount mortgage is also available.

Variable mortgage loan

In variable mortgage loans, the rate of interest can be changed at any time it all depends upon the market situation. The interest rate of this type of mortgage depends on fluctuation (EIBOR) Borrowers can end their loan with lucrative deals otherwise they return it with a higher interest rate which depends on market position. If you choose this type of loan option you must have financial liquidity to handle any increasing repayment

Capped mortgage loan

The capped mortgage loan is also a type of mortgage loan like other loans In Dubai capped mortgage loan is also included in a mortgage where the borrower has some advantage of this. you will make a payment at a variable interest rate but a maximum cap is set before the Lona term at the beginning often capped period can be limited time. The interest rate also changes according to the market situation This allows you to same financial planning at least initially however you will pay an extra capped mortgage rate more than a discount mortgage rate.

Remortgage

With this loan, you can take a new loan or even transfer this mortgage with a new mortgage the amazing thing is that the same lender can offer this new loan and you can take a new loan when the interest rate is low on the initial loan people choose remortgage as they additional fund for their personal use. Most of the people choose remortgage option to get the lowest rate of interest for longer payment terms.

The Process of Getting a Mortgage Loan in Dubai

To get a Dubai mortgage for non-residents you have to follow a process that is mentioned below -

find an expert broker who finds a suitable property for you and who has knowledge of the local market and market price

Then choose the best mortgage option that doesn’t affect your personal needs and you can easily pay their installment

Get a pre-approval letter from the bank

Find your dream home

Finalize your property

If you get overwhelmed during the making application for a mortgage, then you can get in touch with reliable mortgage brokers in Dubai to make it simple and hassle-free.

Benefits of Getting a Mortgage Loan in Dubai

Is it safe to invest in Dubai? Yes, Dubai is safe for investments you take many advantages while taking a loan

The interest rate on mortgage loans is very low in Dubai compared to another loan

1%of procession fees

Maximum Period for paying loan 25 years

Customise loan installment

Safy and flexible to pay

Reduce interest rate from 0.49%

Source: feedingtrends

Guide to Mortgage Loans for Non-Resident Investors in Dubai