{"id":536,"date":"2020-06-19T21:15:57","date_gmt":"2020-06-19T17:15:57","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=536"},"modified":"2020-06-19T21:18:50","modified_gmt":"2020-06-19T17:18:50","slug":"types-of-mortgages-available-in-uae","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/types-of-mortgages-available-in-uae\/","title":{"rendered":"What Are The Types Of Mortgages Available in UAE?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The first and the initial step for finding the right bank for a mortgage loan is knowing what type of mortgage you want and how many <strong><a href=\"https:\/\/moneymall.ae\/credit-blog\/a-beginners-guide-to-mortgages-in-uae\/\">types of mortgages<\/a> <\/strong>are available in UAE, that suits your need. Financial institutions provide various types of mortgages, out of which the borrowers choose one based on their preference as well as eligibility. If you are struggling with the different types of mortgages, too, and trying to figure out which one of them might be the best for you, we have got you covered. Given below are the standard types of <strong><a href=\"https:\/\/moneymall.ae\/mortgages-home-loan\/\">mortgages available in the UAE<\/a><\/strong>. Read below&#8230;<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23373ba2601\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23373ba2601\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/types-of-mortgages-available-in-uae\/#Fixed-Rate_Mortgage\" >Fixed-Rate Mortgage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/types-of-mortgages-available-in-uae\/#Variable-Rate_Mortgage\" >Variable-Rate Mortgage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/types-of-mortgages-available-in-uae\/#Discounted_Rate_Mortgage\" >Discounted Rate Mortgage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/types-of-mortgages-available-in-uae\/#Capped_Mortgage\" >Capped Mortgage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/types-of-mortgages-available-in-uae\/#Remortgage\" >Remortgage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/types-of-mortgages-available-in-uae\/#Offset_Mortgage\" >Offset Mortgage<\/a><\/li><\/ul><\/nav><\/div>\n\n<p style=\"text-align: center;\"><strong><em>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/a-beginners-guide-to-mortgages-in-uae\/\">A Beginner&#8217;s Guide to Mortgages in UAE<\/a><\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fixed-Rate_Mortgage\"><\/span><b>Fixed-Rate Mortgage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In fixed-rate mortgages, the rate of interest is determined well in advance before the onset of the term of the loan. It remains the same throughout the period for which the rate is set. This particular type of mortgage is usually offered for two, three, or four years, but if you are lucky, you might as well grab the offer of a fixed rate for the entire term of the loan. Fixed-rate mortgages have a whole lot of advantages, some of which are as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">In fixed-rate mortgages, borrowers are able to find a clear budget since they know that the rate of interest will remain the same throughout the term of the loan.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Even if mortgage rates rise in the future, it will not be a problem for the borrowers since a fixed rate of interest has been locked.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The borrowers know in advance how much they will be paying each month.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><strong><em>Read More:- <a href=\"https:\/\/moneymall.ae\/credit-blog\/20-myths-about-credit-scores-in-uae\/\">20 Myths About Credit Scores in UAE, Busted.<\/a><\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Variable-Rate_Mortgage\"><\/span><b>Variable-Rate Mortgage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Unlike fixed-rate mortgages, the rate of interest in visible-rate mortgages is susceptive to change throughout the course of the term of the loan. In this type of mortgage, the rate of interest is dependent on market factors. Before you opt for a variable-rate mortgage, make sure you keep the following factors in mind:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It can be of advantage to the borrowers if the interest rates in the market stabilize or decrease at some point in time.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Borrowers should make sure that they have the financial stability to handle any change in mortgage rates before they opt for variable-rate mortgages.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Discounted_Rate_Mortgage\"><\/span><b>Discounted Rate Mortgage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Under a discounted rate mortgage, financial help is provided based on a standard yet the variable rate of interest. This is because a discount is provided on the rate for a given period of time, usually for the first three months of the term. This type of mortgage might seem to be the cheapest option, but can be troublesome in the long term, since the discount is provided for a limited time only.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Capped_Mortgage\"><\/span><b>Capped Mortgage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Capped mortgages are similar to variable-rate mortgages except for the fact that a maximum cap is set before the term begins. If the market rates increase, the monthly installment will not go beyond the predefined cap. Keep in mind that capped mortgages are also only valid for a limited time as an introductory offer.<\/span><\/p>\n<p style=\"text-align: center;\"><strong><em>Read More:-\u00a0<a href=\"https:\/\/moneymall.ae\/credit-blog\/459-2\/\">All About Metal Credit Cards And The Banks That Offer Them<\/a><\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Remortgage\"><\/span><b>Remortgage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A remortgage is getting a mortgage loan on an existing mortgage or a transfer of the existing mortgage. The loan can be taken from the same lender or a different lender. <\/span><span style=\"font-weight: 400;\">The concept of remortgage is helpful if the new loan is provided on low-interest rates or if the loan holder is in need of additional funds.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Offset_Mortgage\"><\/span><b>Offset Mortgage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An offset mortgage is a rather new concept in the UAE, under which, loan holders can link their savings account, current account, credit card account, and the loan account. Whenever some funds are credited on any of the accounts the loan amount gets reduced by an offset of the credited amount.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Purchasing a place of residence is sure a pleasant experience, but it only gets better if it is well-planned and given its due time. It is of great importance that you figure out what financial product might be best for you as a <a href=\"https:\/\/moneymall.ae\/mortgages-home-loan\/\"><strong>home mortgage<\/strong><\/a> is something that will have a huge financial impact even long after it is signed. Therefore, \u00a0we hope that this article resulted in you bringing you a step closer to your final decision.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The first and the initial step for finding the right bank for a mortgage loan is knowing what type of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[5],"tags":[110,91,81,92,89,126,125,93],"class_list":["post-536","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgages","tag-getting-a-mortgage-in-dubai","tag-home-mortgage-in-dubai","tag-mortgage-eibor","tag-mortgage-house-uae","tag-mortgage-in-dubai-for-expats","tag-mortgages-available-in-uae","tag-types-of-mortgages","tag-uae-mortgage-calculator"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=536"}],"version-history":[{"count":4,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/536\/revisions"}],"predecessor-version":[{"id":618,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/536\/revisions\/618"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/538"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}