Guide to Accessing Best Mortgage Rates in Dubai
Getting access to
a pocket friendly mortgage rate in Dubai can be a not so easy task, however
with the gumption and drive towards achieving that, you can.
determination to find a pocket friendly mortgage rate in Dubai, other considerations
must be given due attention to prevent running into a high overall cost in the
end. The underlining factor behind this article is to dish out important guidelines
towards attaining the best, affordable, mortgage rates Dubai can offer.
Best Mortgage Rates in Dubai! How to Find It?
With the aim of grabbing
the lowest and best mortgage rates there can be in Dubai, it is advisable to
start off with going in search of a “good enough “mortgage. This is that step
that includes applying to different financial houses and making your pick, and
gives you a firmer negotiating stance when a property is found thereafter. As mortgage
lenders such as credit unions, banks, private lenders and finance professionals
are after granting mortgage to reliable, credit worthy individuals with a clean
slate, it is advisable that you do an in-depth review of your credit report,
budget, comparing and contrasting mortgage interest rates and rate quotes
before presenting it to interested finance houses or lenders. Also, prospective buyers are
advised to first obtain mortgage pre-approval to confirm their budget before
doing any serious property hunting.
The borrower’s credit score can
often play a role in the rate charged on a mortgage and the size of mortgage
loan he is able to obtain. A higher score indicates the borrower has a
good financial history and is more likely to repay his debts. This allows the
lender to lower the mortgage rate because the risk of default is lower. The
rate charged ultimately determines the overall cost of the mortgage and the
amount of the monthly payment. Therefore, borrowers should always seek the
lowest rate possible.
rates in Dubai can be Sourced online
After meeting one
on one with lenders and speaking with professionals, do not rush into signing
an agreement with either of them. The need to engage in yet another mortgage
research cannot be overemphasised, however, this time the search should be done
The best mortgage
rate deals in Dubai and every other information one intends to find out can
also be found online as quotes can easily be gotten from diverse lenders
without the restriction of proximity, energy and time constraint. Again, after acquiring
the different quotes from the different lenders, compare all and see which is suits
you best enough and go ahead with contacting the lenders offering the best of
As many lenders
will have their best mortgage rates they are offering listed on their websites,
visiting the websites is not a bad way to start. In other cases, you some
lenders have a section for online interaction with clients and for credit profile
review, use this medium to get as much information as you can get. The need to
get properly informed before committing to a mortgage plan cannot be over-stressed.
Thereafter, What Next?
seen the best mortgage rate, what follows next is the signing into place of a
Memorandum of Understanding (MOU) that makes the agreement official and demands
that the purchaser puts down a percentage of the purchase price. It also has in
detail the terms and conditions as well as every detail regarding the payments.
These terms and conditions are binding and must be strictly adhered to.
Once an acceptable
valuation has been received and all other requirements have been met, the final
mortgage rate offer is issued. The bank will ask for undated security cheques
which are held by them until the loan is repaid and these are use in the event
of missing any repayments.
If there is an
existing mortgage on the property, this must be cleared in full and the vendor
will ned to provide a liability letter from their bank. Purchasers must also go
to the developer’s office, along with the seller, the agent and often the bank
to obtain a formal “letter of no objection” to confirm that all service and
maintenance fees have been paid to date by the seller. This can cause a slight
prolonging of the process before full acquisition is made.
The size of your down
payment can also affect the mortgage rate that you pay. The best mortgage rates
are given to borrowers who make a substantial down payment of 30 percent or
more, or if they refinance with at least 30 percent equity of more.
Mortgage Interest Rate, How Does this affect you?
Mortgage rates in
Dubai are undecided as they have a high chance of changing in the slightest stock
market circumstance, either the next day or even within a few hours. The lowest
mortgage interest rates gotten today can automatically change into the highest
the next day and vice versa.
rates are often times than not set bey the lender, and can be either fixed,
stay the same for the term of the mortgage, or vary, fluctuate with the
mortgage interest rate. Mortgage rates rise and fall with ratees and can
drastically affect the purchaser. To prevent the uncertainty and shock that
comes with change, you can lock in today’s mortgage rates when you apply for a
loan and if rates rise over the weeks before you close, you still get the rate
you locked in. Economic indicators such as inflation, a country’s reserve and
the general well being of that economy. If the wellbeing of the economy is not
favourable, investors turn to bonds to secure their money, and once the bond yield
drops, investors turn to mortgage to secure their money. In those cases, mortgage
rates can drop. And on the other hand, if an economy is on the right path,
investors seek other investment opportunities, and the bond yield rises,
increasing mortgage rates.
mortgage rates fall, some lenders in Dubai have a provision that allows you to
relock your rate if it drops by a certain amount before you close, often a
quarter of a percent. So, you’re protected in case the market moves lower. But
not all lenders do this, so be sure to ask in advance.