7 Insider Secrets to Finding the Lowest Variable Mortgage Rates In The UAE
Getting the lowest variable mortgage rate saves you thousands of dirhams over the life of your loan. Because of market fluctuations variable mortgages offer an equal amount of risk and reward. However, there are a few insider secrets that guide you in getting the best mortgage rates in the UAE.
So, without further ado let’s begin.
Monitor Economic Trends
Mortgage rates are dependent on the CBUAE’s interest rate policies. Broader economic conditions also have a slight effect on the rates. When the CBUAE signal rate cuts or maintains low rates the variable mortgage rates become lucrative. If you want lower mortgage rates you should keep an eye on economic indicators like inflation, unemployment rates, and GDP growth.
Insider Tip
Sign up for a credible economic newsletter to stay updated on the economic trends. Other than that you can also follow news outlets for potential rate changes. Always its advisable to consult mortgage advisors as they keep an eye on these indicators and give you a heads-up when the right opportunity arises.
Shop Around and Compare Lenders
There are loads of mortgage lenders in the UAE. Because of this the mortgage can vary significantly. Contact different lenders and compare their offers. Some of them even offer promotional rates or discounts for new customers. So, it’s always best to look around when you want the best mortgage rates. Mortgage advisors do this legwork for you, comparing different lenders and finding the best deal based on your financial profile.
Insider Tip
There are online tools available that let you compare different mortgage options and calculate your mortgage rate.You can use them to get a broader view of what’s on the table before you begin the negotiating process. Let advisors assist you with online tools that compare mortgage options and calculate rates, they will ensure you get the most competitive offers available.
Negotiate with Confidence
Lenders do negotiate with potential clients who have a strong financial profile. A positive financial record basically puts you in the driving seat of the whole process. Similarly, when you communicate with a lender always have your prep-work in place. Do prior research about prevailing market rates along with competitor analysis.
Insider Tip
If you want to get an upper hand prepare a pre-approval from another lender. Now, use that pre-approval as a leverage in securing a better deal. Mortgage advisor will help you to present your financial information in the best possible light, giving you leverage during negotiations.
Improve Your Credit Score
When you have a high credit score it signals the lender that you are a low-risk borrower. If they think you are a low-risk borrower you get better interest rates. That’s how the whole thing goes.
So, if you want to secure the lowest variable mortgage rates you should always pay off your outstanding debts. Apart from that also try avoiding late payments along with maintaining error-free credit reports.
Insider Tip
Try to keep your credit score above 700 to qualify for the most competitive rates.
At Crown Capital Finance, we’re not just mortgage brokers or financial advisors; we’re your partners in achieving financial success.
Choose Crown Capital Finance as your financial partner, and experience the difference. Let our experts guide you towards a brighter financial future!
Consider Working with a Mortgage Broker
Mortgage brokers are professionals who know the ins and outs of the system. They have a huge network of lenders who offer rates that aren’t a part of typical public advertisements.
Insider Tip
If you are hiring a broker, always hire a good one. Don’t worry about spending some extra dirhams. When you work with a professional it always pays dividends in the long run.
Time Your Application Strategically
Timing of your applications also has a close association with the mortgage rate you get. During certain times of the year lenders offer favorable terms. Take the last fiscal quarter or year as an example where salespersons just want to meet the targets.
Insider Tip
Time your application when there’s competition in the market. You can also apply during the promotional periods when there are low rates everywhere.
FAQs
Variable mortgage rates in the UAE are primarily influenced by the EIBOR (Emirate Interbank Offered Rate). This fluctuates on the basis of market conditions.
Regularly review financial news outlets. Also consult with your bank, or use Central Bank website to stay updated on EIBOR movements.
Lenders often add a fixed margin to the EIBOR to determine the total interest rate. For example, HSBC UAE offers a 3-month EIBOR-based variable home loan with a fixed margin set for the loan’s duration.
Demonstrating a strong credit history, stable income, and a substantial down payment can shift the negotiating position into your favor.
Variable rates can offer lower initial payments, but they carry the risk of increasing rates over time. Fixed rates provide payment stability but may start higher.
Utilizing mortgage calculators that factor in potential EIBOR fluctuations can help estimate future payments and total costs.
Some banks impose early settlement charges if the loan is repaid within a certain period. For instance, HSBC UAE charges 1% of the outstanding loan amount or AED 10,000, whichever is less, if the loan is repaid within the first 3 years.
Final Thoughts
If you want to get the lowest variable mortgage rates you’ll have to do a lot of homework. This includes everything from in-depth research to strategy. After that you’ll have to monitor the market for finding the right opportunity. However, there’s something you should always remember about variable mortgage rates. They offer flexibility but also face rate fluctuations. So, prepare yourself for that as well.
If you want personal guidance of professionals you can reach out to Crown Capital Finance. We’re not just mortgage brokers or financial advisors; we’re your partners in securing the best mortgage rates.
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