The Mortgage Market The Rates are on the Rise

  • 19FEB
    The Mortgage Market – The Rates are on the Rise

The Mortgage Market – The Rates are on the Rise!

When getting a mortgage, the Rate is important and it can be quite daunting when the News starts to talk about the rates rising. Below is a breakdown of what is currently happening in the UAE mortgage market and what you can do secure the best mortgage rates.

Firstly, let us start with the background information. At the beginning of January 2017, the UAE EIBOR Rate (Emirates Interbank Offered Rate) increased. This is the interest rate charged by banks in the UAE for interbank transactions and is often used as a reference point for mortgage interest rates. This recent rate increase is due to the US Federal Reserve increasing their profit rates by 0.25% in December. As the UAE Dirham is pegged with the Dollar this has an impact on the market here in the sense that the rates are increasing also.

Now we’ve got the why covered off let us go into the effects this has had. Due to the recent EIBOR increase many banks here in the UAE have started to react by increasing their variable rates and pulling their lower fixed rate products. This means that most fixed rate products have been increased by roughly 0.25%. With 1 year fixed now starting at around 3.50%.

Lastly let us cover off what you can do about the rate increases. If you are thinking about taking a mortgage here in the UAE, the best time to act is now before the rates increase further. Here in the UAE there is a wide range of products that you can choose from. With fixed mortgage rates from 1 to 5 years and even products where you can fix the payment for the full term of the mortgage. With all these options to look at why not get in touch with one of our Qualified Mortgage Advisors who can help you secure the best mortgage rate for your individual needs.

You can read our previous blog about The Mortgage Market,  click here   

MENA Mortgage Services – Your Personal Advisors
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19th February 2017