Fixed or variable? Conventional or Islamic? What are liabilities? Getting a mortgage can make us feel like a fish out of water. But that's why we're here to help.
We've scoured the internet and found some of the most frequently asked questions about mortgages and tried to put answers to those questions.
When to get a mortgage?
Buying a home should only be done when you feel financially ready. And if you choose to do so, the mortgage journey tends to begin in parallel with searching for a property. The first step is getting a mortgage pre-approval, which shows sellers and real estate agents know you’re serious about buying.
What mortgage can I afford?
Using an Eligibility Calculator can help you understand what you can afford i.e the maximum you could spend on a property with its associated upfront cost and monthly payments.
What mortgage can I qualify for?
There are multiple factors that determine your qualification for certain bank offers – they include residency and nationality, income and employment type, and liabilities, to name a few. That’s why mortgage experts like Huspy can help you be aware of what you’re eligible for and find the right mortgage rate for you.
When to refinance your mortgage?
There are lots of reasons homeowners choose to refinance their mortgages. Possibly to get a lower interest rate and monthly payments, pay off the loan faster, claim equity - commonly known as a cash-out, and switch loan type from a variable rate to a fixed rate.
When are mortgage rates going down?
Interesting question! This can partially depend on what type of rate you go for.
Fixed rates have minimal fluctuations because you pay the same interest rate for a specific period of time during the mortgage repayment period. In Dubai, that’s usually between one and five years.
Variable rates, on the other hand, can fluctuate based on the benchmark interest rate (EIBOR) fluctuations. So with a variable-rate mortgage, your interest rates can go up or down over time, meaning your monthly payments can vary.
What causes mortgage or interest rate fluctuations?
Interest rates are decided by a combination of factors, including economic factors, market conditions, and bank rates. While mortgage rates don’t directly impact home prices, they do influence housing supply - which does play a role in house prices.