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A guide to types of mortgages in Dubai

One of the most interesting things you can do in existence is to buy your dream home. When you plan tobuy villa in Dubai, you might find it a little difficult to finance it.

In Dubai, getting the ideal property means browsing the web, trying to meet agents and designers, talking to friends and family, visiting properties physically, and then trying to make your final decision about the right house for you.

If that’s all sorted, it’s time to sort out the various kinds of mortgages open to you in Dubai for something less glamorous but of tremendous value. Most people purchase homes with a mortgage, but certain individuals can afford to buy a house in cash. Here’s our guide on the types of mortgage options available in Dubai.

Types of mortgages in Dubai

Potential homeowners can find various kinds of mortgages on sale in Dubai. Considering that it is a long-term investment, you must consider the pros and cons before making a selection.

Are you planning to acquire a Dubai home? Here are the various forms of mortgages available in the region.

Fixed-rate mortgage

As the name depicts, the interest rate is set in a fixed-rate mortgage before the loan term’s onset. Even, within the pre-agreed duration, which is normally under five years, this rate does not change. You may be fortunate enough, though, to find a provider promising a complete loan maturity term at a fixed-rate.

In this scheme, there are obvious incentives for the creditor. For a couple of years at least, it’s simpler to schedule and prepare the financial outlay. Nevertheless, you would be left with the initial rate if the business condition shifts and prices go downwards. Conversely, if the prices go higher, the fixed-lower-rate would be an asset.

As a borrower, to consider all the available mortgage forms in Dubai, you must research the market or seek professional assistance. A fixed-rate mortgage is not the safest choice if prices are going to go down quickly.

Variable interest rate

For variable interest rate mortgages, the interest rate can vary based on market circumstances over the repayment period. When market dynamics determine, investors can end up with a lucrative offer or even end up paying a higher return rate. Ensure you have the financial liquidity to manage any rise in repayments if you apply for this form of a loan.

Discount rate mortgage

It could be the best choice among the various forms of a mortgage in Dubai to get a discounted rate mortgage in certain situations. The creditor spends a smaller sum since the borrower’s variable interest rate offers financial aid. This cut is for a limited time, though. You will be paying a flexible rate in the long run.

Capped mortgage

Mortgage firms in Dubai also have capped mortgages where there is some gain to the borrower. You’ll make loans at a variable rate, but an overall limit is set before the loan period starts. The capped duration will also be for a short amount of time. Dependent on the financial conditions, interest rates rise, but a cap is applied above which the rate does not rise.


This is one of the valuable mortgages in Dubai to help you reset if you make an expensive error with your original mortgage scheme. You may get a new loan on an existing mortgage or even a swap of the existing mortgage with a remortgage choice. Amusingly, the same provider will still sell this new loan, or you can find a new one. Many times, even though the interest rate on the original loan is low, individuals apply for a remortgage because they require extra funds.

Offset mortgage

A borrower can connect their existing, investing, credit card and lending account with an offset mortgage. Whenever any funds are credited to each of the accounts listed above, they refund the loan’s balance. Therefore, you end up paying a lower interest rate in the long term by periodically offsetting the amount.

Here are some expert recommendations about getting a mortgage in Dubai for some useful tips on mortgages. Before signing a contract, take your time to consider the various types of mortgages in Dubai. Eventually, it is about finding the right deal for yourself. Home loans are an option in Dubai, too. Bulgari Residences Dubai is a great option to get your new home!