Buyers can now avail of low mortgage rates

 

Buyers can now avail of low mortgage rates- Dubai Real Estate.

The option of buying seems compelling when pitched against the certainty of losing money by renting.

As the post-recession dust settled, the local property scene was classed as a”buyers market’’. It still holds true today, with an increasing number of residents looking to snap up lucrative deal. Many are old-timers in the emirates who are all too familiar with the way rents eat into their pay packages.In such a scenario, the prospect of buying a home makes complete sense.

Money spent on rent can instead go towards financing a mortgage. Even if property prices fluctuate over time, there is still a good chance that homeowners could build some equity. The option of buying seems more compelling when pitched against the certainty of losing money by renting.

Over the past two years banks have become more active and are extending mortgages at better rates than before. Moreover, both the quantity and quality of mortgage products on offer have improved. Products on offer do not impose a penalty on the client while settling the loan or transferring the mortgage to another leader.

The loan component has grown as high as 80% in the case of some lenders such as United Arab Bank, where repayment rates stand at a modest 3.99%. Buyers who previously could not scrap together enough cash to purchase a property outright can now consider owning a property. The majority of residents are looking for properties where the monthly mortgage payment matches the monthly rent they would normally pay.

Exercise caution when negotiating mortgages though, as most lenders will offer a fixed rate for the initial period but lock borrowers into a more expensive rate afterwards for the remaining term. So all the conditions must be laid out clearly at the onset.

Opting for a mortgage broker can be a good idea if you are pressed for time as they can review all available products to arrive at the best one for your requirements. Brokers can also prove advantageous as they are privy to lenders’ internal credit policy information, which is generally not made public.

Mortgage Tips

Banks are now offering better mortgage products with improves rates

People now prefer to buy as rent money can go towards mortgage financing.

Exercise caution when negotiating lending rates or opt for a mortgage broker.