To have your own home that you can call your personal property and do whatever you want to do is a dream by almost everyone. But it is very much difficult to get your own place in big cities like Dubai and Abu Dhabi. As these are becoming more and more popular as business hubs in the UAE, home finance in UAE is getting more and more competent in Dubai due to increasing number of industries but on the other hand it is also very much suitable to get home finance in UAE form the top banks of Dubai. The clear cut method and steps we will share in later part of the article. People from all over the world have started moving towards Dubai due to vast opportunities and one of the main things that some of them have on their mind is to be able to buy a house through home finance in UAE offers being provided by different financial institutions as well as by top banks of Dubai. To buy a house is something that is easier than doing anything if you have knowledge about the banking sector of Dubai.
The amounts required are high by the expatriates and the loans are easily available by the banks which are consider as lenders and the borrowers needs to meet the requirements last for a fixed time and that is why you need to be careful when it comes to taking a home loan. The mortgage rates on the home finance in UAE vary according to their rates being offered by different banks and these are available on the credibility of the customers. There are many factors that need to be taken into consideration when taking a home loan in the UAE so beware about the exact terms and conditions. The major factor however is the interest rate and it caters carefully otherwise one can get into an unlimited debt. Home finance in UAE are easily available from various banks across the UAE as we have mentioned above. The common terms are that the banks are willing to fund up to 80% or more of the cost of the property and after the agreement within fixed time period the borrower has to pay all the installments of the loan with interest rate. The loan can be taken for as long as 20 to 25 years but for locals this time period is more and vary from bank to bank. The interest rate that is applicable on these loans depends on the bank that offers that loan. It can range from 2.5% per annum to 5% per annum. Banks like Mashreq Bank through Mashreq mortgage system offer interest rates of around 4.25% per annum while ADCB offers an interest rate of 3.99% per annum. Home finance in UAE – Mashreq bank of Dubai The conventional home finance in UAE done in two interest rate systems. The first is the fixed rate of interest and the other is the variable rate. With the fixed rate the interest charged on the loan remains fixed for the entire duration of the loan but with the variable rate changes according to the amount of the installment. The variable rate can be increases and decreases as per the market conditions and it is mostly used by for the commercial services. This means that customers can finished higher interest rates instead of paying low interest rate. Some banks offer interest rates that are a combination of the two. And one of the best example of such a bank is Mashreq bank. It is one of the oldest bank in the town and it provides services for home finance in UAE through variable mortgage rate system and fixed mortgage system. Most of the time the first few years of the loan come with a fixed rate of interest while the remained carry a variable rate of interest. There are many advantages of this system and one of the major contribution is that once the rates change over to the variable interest rate, the monthly payments can reduce easily. For further details one can get all information from the official website of the bank.
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