Mortgage in UAE – Introduction
Posted: Nov 11, 2017
Mortgage or mortgage loan in simple words a type of loan that someone takes from a bank or a financial loaner by keeping some property in their possessions for a time period till installments paid. This is the shortest way to start a small business for future purposes. Mortgagee in UAE can easily get through a private bank in easy installments. The interest rates for a mortgage in UAE in due installments are comparatively very low with respect to other financial banks providing mortgage loans in USA, UK, and Europe.
Mortgage in UAE – Types of Mortgage loans in UAE
Mortgage in UAE is providing mortgage loan for small businesses or establish a home or for other purposes also. As the fast-growing economy of UAE is playing an important role in almost every area of business along with mortgage in UAE. Now it has become very easy for an expat to get the mortgage in UAE to establish their businesses and to earn a better future in Dubai. There is two major type of mortgage in UAE.
1 – Mortgage in UAE – Fixed Rate Mortgage
In this type of mortgage interest rate remains the same throughout the time period of the loan. The installments gradually decrease with a time period and it is best for a home loan because the majority in Dubai work as an employ and monthly income remains the same so fixed mortgage in UAE is suitable rather avail other policy.
2 – Mortgage in UAE – Adjustable Rate Mortgage
In this category rate of interest on mortgage loan remain fixed a limited time period and after that, the interest rate gradually increases or decrease according to the market index. This type of mortgage in UAE is basically used for commercial purposes as an individual is not able to bear the ups and downs of the market index.
Mortgage in UAE – Islamic Mortgage
In most of the Islamic countries, Islamic sharia prohibits the concept of interest. So many Islamic countries like Dubai has a system of Islamic mortgage. This Islamic way of mortgage in UAE is actually buying a property from a borrower and then act as a landlord. Now the borrower of loan pay installments of the loan in terms of rent to get back his/her property. After the last installment, the bank changes the ownership that is written in an agreement between two parties one the borrower and the other is the lender that is actually a financial bank. This Islamic phenomenon of mortgage in UAE is very popular as the majority is related to the local community but this formula is completely in favor of other communities because the terms and conditions are same for everyone.
Mortgage in UAE – Top Banks of Dubai
Different private banks of Dubai are offering best packages for a mortgage in UAE and their services are the best and recognized at world forums. There is no mathematical formula to get a mortgage in UAE, just simply go to the website of the best bank from the list providing a mortgage for home building or establishing a business and choose the required policy that is suitable according to your affordability. Keep in your mind that before going to avail the mortgage in UAE one must be an employee with a reasonable salary package or have a property that you can show towards your lender as a guarantee. Along with this, you have a valid passport to show your nationality. This is a commitment and one must be regular in paying the installments. For best services, in this regard, one should check the website of Mashreq bank as this is best bank providing mortgage in UAE in comparison to other lenders. There are different services and policy options with different links provide on the website of Mashreq bank. One can pick the best policy and easily calculate the payment package through a financial calculator for exact details on a mortgage in UAE.
Mortgage in UAE – From Other CountriesRates of Mortgage in UAE is comparatively different from other countries. The highest mortgage rates are in the USA while in Germany and other parts of Europe the interest rate on a mortgage loan is low. The system of mortgage in UAE is relatively best and the interest rate is very low because of two reasons first there is no tax on monthly income and the second Islamic mortgage system.
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