THIS ARTICLE WAS ORIGINALLY PUBLISHED DURING THE SUMMER OF 2020
Minimizing interest rates
Since the end of 2019, we have seen rate decreases from the US Federal Reserve, and as the UAE is pegged to the US dollar, we have seen interest rates in the UAE drop to their lowest-ever levels.
Additional rate reductions in the past few months from the United States Fed, and in line with these, more reductions from the Central Bank of the UAE, leave us in a situation where mortgage prices in the UAE are now at their lowest ever.
Rates of interest and mortgage products are the most competitive that we have ever seen in the market, with fixed rate mortgages currently readily available for as little as 2.75%. Prices like these present an excellent opportunity for those looking to buy a home now and take out a fixed-rate mortgage.
Holo suggests taking advantage of these rates as they will not be around forever.
For those who already have a mortgage with a variable bank rate, we hope that your loan provider will pass on these rate cuts to you in the coming months. So you can see a decrease in your month-to-month EMI.
If you have a home mortgage that is currently at a high fixed rate, you can consider a buyout (remortgage). If you have an interest in investigating buyouts, please apply on our site under "Refinance."
Processing fee waivers
- Another initiative we are seeing from lenders is the reduction or elimination of processing fees when applying for a home loan. Some banks have put reductions in place to minimize the upfront costs incurred when buying a property.
- This fee reduction, combined with lower deposits, helps to make purchasing more affordable and accessible.
- If you are considering a buyout (remortgage), it is worth keeping in mind that the majority of banks will waive the processing fees as well as reductions for buyouts along with brand-new home loans.
Holo is here to assist with your money-saving questions.
This blog is for educational purposes, but everyone's case is unique, and local guidelines and regulations may change. Our mortgage advisors can help you with any question you may have and have the latest advice. Get in touch.