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 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.