Mortgage loans have various types, mainly differing on interest rates and their calculations.
A fixed interest rate from the beginning to the end of the loan term. This solution is easier for you to plan and make your payments.
a Variable interest rate and is always changing. It follows the interest rate as regulated by Emirates Interbank Offered Rate (EIBOR). Here, you don’t know how much interest you will have to pay in your next Equated Monthly Installment (EMI), But it can be useful also as sometimes rates can become very low from time to time.
This provide you with highly attractive mortgage rates, but they are offered on limited time. After that period, a higher interest rate is applicable to the principal amount. If you choose to pay off the loan within the discounted period, you will save a lot of money in terms of total interest to be paid.
An adjustable-rate mortgage. This follows the Emirates Interbank Offered Rate (EIBOR) rate as the basis for interest calculations, but there is an upper limit set for the interest rate. As a benefit, You can always be aware of the maximum Equated Monthly Installment (EMI) you will pay and manage accordingly.
You can benefit of changing the principal amounts, which impacts the interest rates and Equated Monthly Installment (EMI), if you deposit a certain amount of money to the lender bank, the outstanding principal amount will reduce accordingly. There are also no barriers to draw that amount, allowing a lot of freedom and control.