Home buyers on credit in Dubai are looking for ways to ease the financial burden

Home loan rates could rise up to 7%, and buyers need alternative options for financing.

To avoid unbearable mortgage obligations, buyers of real estate in the UAE today can turn to developers offering rental schemes with subsequent redemption. And for those who still want to get a mortgage in a bank, it is worth considering those that offer so-called «credit» savings accounts. These are ordinary deposit accounts linked to a loan for housing, which can be freely managed, and thus significantly save on interest.

Potential buyers of real estate in the UAE who want to get a mortgage loan can no longer waste time, experts say. If they delay until the end of the year, they will most likely be able to get a loan at only 7% or higher compared to about 5% now.

Mortgage real estate transactions in Dubai have significantly decreased compared to the level of last year, and this was facilitated by three increases in interest rates in the United States and the UAE combined by 1.50% since March.

Since May, when interest rates increased by 0.50%, the number of requests to lenders for housing finance packages has increased markedly. These homeowners were trying to get a «better» deal before another increase was announced on June 15, this time by 0.75%.