Different Mortgages in Dubai

Dubai mortgage is a bit of a tricky thing. In order to avoid any chance of fraud, you will need to get help from multiple and previously guaranteed firms and persons. The best thing to do is to deal with Dubai banks and big, respected companies that have unquestionable credit on the real estate market. Let us talk about the types and ways of getting mortgage of Dubai.

The types of mortgages in Dubai depend on two things. One is the religion; the second is the way the banks function in Dubai. Of course, these two things are connected with each other. Let us start with the religion. According to the Shariah law and according to the Holy Quran, asking interest for any borrowing is considered as a sin. Therefore, most offices in Dubai they have found the way, to keep this law, but still get their profit from a business. Here are the types of mortgages to show how they solve this problem in Dubai:

There are two mortgages present in Dubai according to the Shariah law:
* The Murahaba mortgage: When the financial institute purchases the real estate to be owned in the name of the owner and the owner buys this real estate from the financial institute for a previously set up amount, which also contains the interest as it is.

* The Ijara mortgage: Here we talk about a company who buys the property first to become its lender later on. Then, a leasing contract will be done between him and the original renter of the property for a fixed price containing the interest as well. Out of the Ijara, there are two types: the first is, when the original owner finally buys the property, in the second it stays a lease. The Ijara is not considered an appropriate Shariah business for many Muslims, so they choose the Murahaba type of mortgage more often.

Of course, there are also different types of mortgages available for non-Muslims in the United Arab Emirates. One choice is the fixed rate mortgage, which is a longer duration mortgage, which might even take up to 30 years with a fixed interest, meaning that the exact amount of profit is, decided when the mortgage contract is made. The future owner pays a monthly amount, which is also set previously. Of course, the longer haul is the mortgage the higher is the interest and the lower is the original sum.

The second type of mortgage is called the Adjustable Mortgage, which is currently one of the most famous loan type used in Dubai because they provide more flexible payments for the clients and that is very important with mortgages. Here they do not fix the exact rate of interest as it goes up and down, according to the exact rate.

The third type of mortgage is called Balloon mortgage. Here, the monthly payments are set a lot lower and the rest is paid when the whole mortgage ends. Therefore, it does not need an explanation why this type of mortgage is liked.

These are the types of mortgages, which you can get in Dubai. As said before, only get Dubai mortgages from highly trusted companies, otherwise, in case of mortgage fraud, you might lose lots of your money, and will not even own the flat or property you paid for. Dubai mortgages, as you see, tend to differ from those, which you got used to, so study these types and get informed from professionals in case you would like to buy a property this way.

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