What is a Mortgage Loan?
Mortgage loans help you buy properties conveniently. The process involves borrowing a substantial amount of money from a bank, financial institution, or service provider to cover the property’s price and returning it over a period of time. You need to pay interest for the mortgage loan along with the principal amount. Mortgage financing is a popular model worldwide for buying desired properties, with banks offering lucrative options and services for mortgages. Many top real estate developers, such as DAMAC and Emaar, have introduced their mortgage services to facilitate their valuable customers.
Types of Mortgages in UAE
Mortgage loans have different types, mainly differing in interest rates and their calculations. Each type has its own advantages, suiting different individuals depending on their financial needs and requirements. We will cover all the different types of mortgages in the UAE.
Fixed-Rate Mortgages
Fixed-rate mortgages have a constant interest rate from the time you take the loan till the end. This makes it easy for individuals to repay the loan without any hassles, as the monthly installments remain the same throughout the process.
Variable Rate Mortgage
In variable rate mortgages, the interest rate keeps changing and isn’t constant. The disadvantage is not knowing how much interest you will be paying in your next installment, making it a surprise factor. However, rates can become very low from time to time, helping you save a good chunk of money often.
Discounted Rate Mortgage
The discounted rate mortgage offers attractive mortgage rates, but only for a limited period. Once the discounted period is over, a higher interest rate applies to your principal amount. If you decide to pay off the loan within the discounted time period, you can avail discounted rates throughout the loan term, saving you a lot of money even with a greater loan term.
Capped Mortgage
A capped mortgage is an adjustable rate mortgage that sets the maximum EMI you have to pay on your mortgage loan, making it easier to manage your finances accordingly.
Mortgage Broker Dubai
Mortgage financing is a friendly and attractive way to buy your favorite properties affordably. However, understanding the process, its terms, and the rigorous calculations involved can make it difficult to comprehend. This is where AZCO Real Estate Brokers come into play. We have made the process easier for our valuable customers and investors by designing solutions to simplify mortgage financing and help you understand mortgage loan calculators with unmatched convenience.
AZCO Property Mortgage Calculator
Using the mortgage calculator UAE, you can easily find out the exact amount you need to pay for your favorite real estate project. This enables you to do everything on your own without contacting any agent to discuss financial feasibility. It is easy to use; just add the value of your chosen property, price range, and other numbers based on your preferences to get detailed information about mortgage repayment. If you face any issues, you can contact our customer support, who are always there to help you with the queries and process. Before using the loan calculator, you should always look at some important aspects of the mortgage loan.
Key Terms Used in Mortgage Calculator
Understanding the key terms is essential to gain better insight into the entire process of a mortgage loan.
House Loan Calculator
The Property Mortgage Calculator is often referred to as the House Loan Calculator. This calculator allows you to determine the property price according to the loan period, down payment, and interest.
Price
In the mortgage process, the price refers to the value of the property.
Down payment
The down payment is the upfront amount that the loan applicant has to pay to acquire the property. It is usually 15% of the total property price.
Interest Rate
The interest rate is the percentage of interest charged against the mortgage amount.
Loan Term
The loan term refers to the total number of years in which you can repay the loan.
Age Limit for Mortgage In Dubai
There is currently no age limit for mortgage loan borrowers. In the past, borrowers were required to be less than 65 years of age, and if self-employed, less than 70 years of age. However, in 2019, the Central Bank of the UAE eliminated the maximum age limit, making it more accessible to borrowers of all ages. Enjoy the benefits of a mortgage, regardless of your age, as restrictions have been lifted for a more inclusive approach.
Interest Rate For Mortgage in Dubai 2023
The rates for both fixed mortgages and variable mortgages vary. The average rate that you can expect is 5.2%.
Borrowing Limit For Mortgage Amount
The maximum mortgage amount you can borrow is up to 85% of the property price if you are a native. For non-natives, the maximum mortgage is 80%.
Documents Required For Mortgage Loan
The documents required for a Mortgage are a valid passport, visa, Emirates ID, personal bank statement, salary certificate, and property ownership documents. Gather the necessary documents and set sail on your mortgage journey with confidence, knowing you have everything in order.
Conclusion
Mortgage loans offer a convenient and attractive way to purchase properties, and there are many options that banks provide. With AZCO Real Estate Brokers and their user-friendly mortgage calculator, the process becomes even more accessible, enabling customers to explore property prices and repayment details effortlessly. In this article, we have covered everything you need to know about mortgage in Dubai.
