How To Get Mortgage Loan For A House in UAE

A house is a symbol of protection and satisfaction for owners. People spend their entire lives gathering money to buy houses for themselves and their families. With the mortgage loan, people buy their houses first and pay later. These loans are available at different interest rates. In this article I am going to share some interesting information about the mortgage loan for a house in UAE. I have tried to share every piece of information related to mortgage loans, that will help you for sure.

What Is A Mortgage Loan?

A mortgage is a loan that a borrower gets from the bank or other financial institutions to buy their houses. In any case, if the borrower fails to pay the installments the lender has the right to sell the property. Many people think that loans and mortgages are the same which is a misconception.

The loan is an amount borrowed by the borrower, and anything can be used as collateral, but a mortgage is a loan that the lender gives to purchase the property. Now let’s take a look on the different types of mortgage loans and it will help you to determine which type of mortgage will be more beneficial for you. 

Conventional Mortgage

A conventional mortgage is not secured by the federal government. It is provided by private lenders or government-sponsored financial institutions. The conventional mortgage loan is only for the home buyers. 

Adjustable-Rate Mortgage

The rate varies over the life of a loan as regards the remaining balance. Following this initial period, the rate resets routinely at intervals, annually, or even weekly.

Fixed-Rate Mortgage

In this type of mortgage, the interest rate is mutually set by the borrower and the lender. The interest rate remains the same.

Government Insured Mortgage

A government-insured mortgage is a secured loan by the government.  These loans give protection to the lender in case of any loss. You can also get this loan by apply in the bank i.e. Mashreq Bank.

Jumbo Mortgage

A loan that exceeds the limit set by the federal government. This mortgage is not secured like the government-insured mortgage.

Mortgage Loans In UAE

In particular, in business-friendly areas such as Dubai and Abu Dhabi, the United Arab Emirates has been becoming an increasingly popular destination. Recognizing the trend, the UAE hypothetical sector is now well developed and expatriates are being offered domestic and foreign lenders.

International nationals living in the UAÉ are given both residential and buy-to-let mortgages, but their conditions differ. For the best mortgage loan on the low interest rate you can concern Mashreq bank. Mashreq bank is considered the best bank islamic bank in UAE that offer mortgage loan on very low interest rate. Below I will guide you how you can apply for mortgage loans in UAE with very low interest rate.

How to Apply Mortgage Loans In UAE?

Many people want to know how to apply for mortgage loans in UAE. In this section, we are going to discuss a few major points to assist you.

Clients may either call banks directly to seek a home loan or get advice from a hypothecary broker. Customers can also find comparative websites in the same places as Dubai and Abu Dhabi, where different lenders will resolve your dealings.

Mashreq Bank Mortgage Loans for Permanent Residents 

Mashreq bank offers fast and processed home loans for permanent residents. With the rate of 2.21% Mashreq bank provides mortgage loans fixed for 2 years.

There is no processing fee and cashback up to  AED4000. Long term rate of 2.75% with 5 years ensures easy installments for the borrowers. 

A team of professionals is always ready to help and assist the customers. They help them choose the right plan for them in accordance with their needs and financial conditions. 

Smooth paperwork enables the customers to get the loan as soon as possible.

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