If you are looking to buy a home in the UAE, you may want to consider taking advantage of the lowest ever 5 year fixed rate mortgages available in the market. A fixed rate mortgage is a loan where the interest rate remains constant for a specified period, regardless of the changes in the market rates. This gives you the benefit of predictable monthly payments and protection from rising interest costs.
What are the benefits of Fixed Rate Mortgages?
There are several benefits of choosing a fixed rate mortgage over a variable rate mortgage, especially in times of rising costs and inflation. Some of the benefits are:
Stability:- You can plan your budget and finances better with a fixed rate mortgage, as you know exactly how much you will pay every month for the duration of the fixed term. You don’t have to worry about fluctuations in the market rates or changes in the bank’s base rate affecting your monthly payments.
Savings:- You can save money on interest costs with a fixed rate mortgage, as you lock in a low rate for a long period. For example, if you take a 5 years fixed rate mortgage at 4.99%, you will pay less interest than if you take a variable rate mortgage that may increase over time.
Security:- You can enjoy peace of mind with a fixed rate mortgage, as you are protected from any unexpected increases in interest rates that may affect your affordability and cash flow. You can also avoid any penalties or fees that may apply if you want to switch or exit your variable rate mortgage.
What are the best Fixed Rate Mortgage Offers in the UAE?
According to various sources, there are some attractive fixed rate mortgage offers available in the UAE for homebuyers who want to take advantage of the low rates and secure their payments for a longer term. Some of the best offers are:
FGB Advantage Plus Deposits:- This is a flexible deposit scheme that offers an attractive interest rate of 2.75% for up to 5 years. You can choose from multiple currencies, such as AED, USD, or EUR, and enjoy the convenience of claiming the interest on the whole amount upfront and crediting it into your savings account.
ENBD Flexi Deposits:- This is a flexible deposit scheme that offers a competitive interest rate of 2.5% for up to 5 years. You can choose from multiple currencies, such as AED, USD, GBP, or EUR, and enjoy the freedom of making premature or partial withdrawals at any time without any charge.
RAK Bank Fixed Deposit Plus:- This is a fixed deposit scheme that offers an attractive interest rate of 0.86% for up to 5 years. You can choose from AED or USD currencies and enjoy the benefit of getting a life insurance cover against your fixed deposit amount.
How to Apply for a Fixed Rate Mortgage in the UAE?
If you are interested in applying for a fixed rate mortgage in the UAE, you will need to meet some eligibility criteria and provide some documents to the bank. Some of the common requirements are:
Minimum investment:- You will need to have a minimum amount of money to invest in the fixed deposit scheme, which varies depending on the bank and the currency. For example, Mashreq Bank requires AED 10,000 as the minimum investment for its fixed deposit account.
Mashreq Account:- You will need to have an existing Mashreq Current or Savings Account to apply for its fixed deposit account. Other banks may have similar requirements for their customers.
Age:- You must be at least 18 years old to apply for a fixed deposit account. A minor (below the age of 18) can apply along with a guardian.
Documents:- You will need to provide some documents to verify your identity and income, such as your Emirates ID, passport, visa, salary certificate, bank statements, etc.
You can apply for a fixed rate mortgage online or by visiting your nearest branch. You can also compare different offers and rates on websites like Mortgagemarket before making your decision. If you are looking for mortgage brokers in UAE than Mortgagemarket can help you in it.
Conclusion:- A fixed rate mortgage is a great option for homebuyers who want to take advantage and mortgage brokers in Dubai like Mortgagemarket which will assist you with it.