The demand for mortgages in Dubai has increased as more and more people look to invest in the country’s real estate.
The UAE’s residential market, especially that of Dubai, has seen tremendous growth. In H1’23, the Dubai Land Department recorded a 45% increase in property sales compared to the same period in 2022. The property costs in Dubai have also gone up by roughly 47%.
One of the key reasons for the surge in the Dubai’s property demand has been its strong economy, supported by a stable political environment. Another factor is its attractive tax regime, which has attracted several businesses and individuals.
If you are thinking about buying a property in Dubai, then you will most likely need a mortgage advisor. Read this blog to learn more about the types of mortgages available in Dubai and the things you should keep in mind when selecting a mortgage advisor.
What are the different types of mortgages in Dubai?
A mortgage is a loan taken to purchase a property, with the property serving as collateral for the loan. Here are the different types of mortgages available in Dubai:
Fixed-rate mortgages
Most homebuyers often opt for fixed-rate mortgages, as the interest rate generally remains the same throughout the duration of the loan. This can be particularly advantageous for long-term financial planning.
Variable-rate mortgages
The interest rate of variable-rate mortgages changes depending on market conditions. While it presents a potential for savings if interest rates decrease, it also carries the risk of higher payments if rates rise.
Islamic home finance
Compliant with Sharia principles, Islamic mortgages function on a co-ownership basis, where the lender and the buyer share ownership of the property. Instead of traditional interest, the bank charges a profit rate.
Equity release mortgages
An equity release mortgage enables homeowners to borrow against the equity of their home, either through a lump-sum payment or a line of credit. This is useful for people who wish to access cash but do not want to sell their property.
What are the key things to consider when choosing a mortgage advisor in Dubai?
Taking a mortgage is a huge decision, and therefore, it is important that you take several factors into consideration.
Pre-approval
To obtain a mortgage in Dubai, getting pre-approved is the first step. It provides a clear understanding of your budget range and enhances your position when negotiating with sellers. PRYPCO can help you get a pre-approval in 48 hours and that too for free.
Interest rate and fees
The interest rate significantly impacts the overall cost of your mortgage. You would want to prefer the provider that offers the lowest interest rate so that your cost of borrowing is lower. Mortgage advisors also charge fees for their services. It can be tiring to go through several providers to compare their rates and fees.
With PRYPCO, you don’t need to worry about that. Our platform gives you the best deals from 11 mortgage providers. An important thing to note is that PRYPCO does not charge any fees for its services.
Loan terms and options
Different mortgage providers offer varying loan terms and options. Many people in the UAE often opt for Islamic home finance due to their beliefs. However, not all mortgage providers offer Islamic home finance.
When selecting a mortgage provider, you may also want to evaluate the flexibility of repayment schedules, the potential for refinancing, and any penalties for prepayment.
Eligibility criteria and documentation
Each mortgage provider has a different set of eligibility criteria, like minimum income, credit score, and work history. You would also need a different set of documents depending on your mortgage provider’s requirements.
Customer service and reputation
A mortgage provider’s customer service quality can significantly impact your experience. Research online reviews and seek recommendations from peers to gauge the provider’s reputation for responsiveness, transparency, and professionalism.
Additional services
Some mortgage providers offer value-added services, such as insurance packages, financial planning advice, or property-related services. Assess the potential benefits of these offerings to enhance the overall value of your mortgage package.
How can PRYPCO help you get a mortgage?
The task of comparing numerous mortgage providers can be daunting. This is where PRYPCO steps in to streamline the process and enhance your experience. Here’s how we can help you:
- Get a pre-approval in 48 hours
- Best and personalised deals from 17+ leading mortgage providers in the UAE
- Can handle tricky and exceptional cases
- Dedicated point of contact that will help you throughout the process
PRYPCO has helped disburse over AED 1.5 billion in mortgages. Check out our free mortgage calculator here!
Choosing the right mortgage advisor in Dubai can be difficult, as you have to take a lot of factors into consideration. But with PRYPCO, you don’t need to take any stress!
