Casa Capital

Did you take out a mortgage a number of years ago with the bank, do you have the time to run around comparing lots of rates to find the best deal on the market? Like most of us here in the UAE we are very busy and the mortgage has been ticking along nice for the past few years and perhaps you are unaware the rate you are currently on, perhaps the deal you took at the time was good for the first 2 to 3 years, but the chap at the bank didn't really go into too much detail about what may happen after that "good period".

We recently refinanced a client was was blissfully unaware that his mortgage rate was nearly 7%. We secured him a rate at nearly half that percentage and we negotiated a full reduction of fees from the bank due to the size of the mortgage and our relationship with that specific bank.

It only takes a quick call to us to compare your current mortgage against something available on the market today. We have extensive ways to calculate the potential saving over the first couple of years and the full term of the mortgage to ascertain if refinancing is worth doing, sometimes it isn't, and if that is the case, we will tell you.

A mortgage is often the biggest financial commitment of a person's life. Normally we seek advice from doctors, lawyers and accountants without questioning the need for their services, why should you take a risk trying to source a mortgage by yourself without the help of a mortgage adviser. Here at Casa Capital we have access to all the leading banks in the UAE, meaning access to hundreds of mortgage products and solutions. Although most clients are very rate driven, there are many other factors that need to be taken into consideration when sourcing a mortgage.

There are three steps to finding the right mortgage for any client:

There are an abundance of products and choices available in the UAE market. Some banks will offer discounted fees if you decide to bank with them instead of your existing bank of choice. This is known as salary transfer.

Some banks and institutions will offer the ability to make overpayments free of charge and some even allow you to exit or pay off the mortgage without cost, however no single bank does it all!

In an ideal world it would be great to have a bank offer the lowest rate, the lowest costs and charges, however where a lender appears great in one aspect it could be less appealing in another. That is why it is very important to understand all of your requirements fully before making a recommendation. There is no point in recommending a low rate that comes with mandatory salary transfer if you are unable to transfer salary due to other loan commitments as an example!

The main types of mortgage when you consider rate are as follows:

FIXED

A fixed rate mortgage is where the bank fixes the interest rate for between 1 and 5 years which protects the rate against fluctuation in the Emirates Interbank Offer Rate (EIBOR).

TRACKER

This type of rate consists of a fixed margin stipulated by the bank plus the prevailing EIBOR rate which changes daily (although most banks use a 3 month rolling average rate). If you believe rates will decline then tracker type products are normally a good option.

VARIABLE

Some banks will offer a variable rate, an internal rate which is set by various internal departments within the institution. Although variable rates are no overly transparent, they can sometimes be cheaper than fixed rates.

Why not call us for a no obligation consultation to find out more