Al Zad Real

Mortgage Advisory

There are many reasons why people are attracted to Mortgage Advisory financing in the United Arab Emirates. First, the UAE is tax-free, with a stable economy and strong currency. Additionally, the UAE offers a wide variety of mortgage products and services, which makes it an attractive option for those looking to finance their home. Thank you for reading this post, don't forget to subscribe! Mortgage financing in the UAE can be used to purchase a primary residence, a second home, or an investment property. Various mortgage products are available, including fixed-rate mortgages, adjustable-rate mortgages, and interest-only mortgages. Mortgage financing in the UAE is also available for multiple terms, including short-term, medium-term, and long-term loans.

What is a Mortgage Loan?

A mortgage loan is a loan secured by a property – typically, a residential property – that the borrower is obliged to pay back, usually for years. The interest rate on a mortgage loan is generally lower than the interest rate on other types of loans, such as personal loans or credit cards, because the lender knows that if the borrower defaults, they can sell the property to recoup their money.

Types of Mortgages

Many different types of mortgage products are available in the UAE, each with its own benefits. The most popular types of mortgages in the UAE are:

Fixed-rate mortgages

offer stability and certainty, as the interest rate is fixed for the entire loan term. However, borrowers may pay more interest if rates fall during the loan term. Variable rate mortgages: These products offer more

Variable rate mortgages

These products offer more flexibility, as the interest rate can fluctuate over the loan term. This means that borrowers could end up paying less in interest if rates fall, but they could also pay more if rates rise.

Tracker Mortgages

These products track the movements of the UAE Central Bank’s benchmark interest rate. This means that borrowers will always know how much their monthly repayments will be, as they will fluctuate in line with changes in the benchmark rate.

Islamic mortgages

These products comply with Sharia law and are therefore popular with Muslim borrowers. Islamic mortgages typically involve the concept of “murabahah”, where the lender buys the property on behalf of the borrower and then sells it to the borrower at an agreed-upon price, plus a profit margin.

Offset mortgages

These products allow borrowers to offset their savings against their mortgage balance, which can help to reduce the amount of interest paid over the life of the loan. However, offset mortgages typically have higher interest rates than other types of mortgages.

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