Interest rate increase in the UAE: property owners should fix mortgage rates for 3-5 years

Interest rates in the UAE are rising by 0.50%. The only thing buyers of real estate in the UAE can do is try to fix their financing rates for a long period. This is the best option to compensate for the higher cost of housing financing. It is expected that it will continue to grow throughout the year.

The increase in rates by half a percent, which occurred on Wednesday, May 3, 2022, will affect the increase in mortgage rates by 1-1.5 basis points for different lenders. Fixing a long-term rate of 3 to 5 years at a lower interest rate can reduce the risk of fluctuations in expenses, and also probably wait out a period of high interest rates.

Mortgage borrowers may also consider switching to another bank, provided they receive a more favorable loan rate. The mortgage rate will be fixed only after the lender issues the loan. Therefore, if you are considering changing the lender, act now to have time to take advantage of the existing benefits.

According to official data, in the first three months of 2022, the number of home purchases with mortgage coverage in Dubai decreased compared to the same period in 2021.