Mortgages for Commercial Property
Commercial mortgages are available through a number of financial institutions in the UAE. Some banks even have the word commercial contained within their name however they do not offer any form of commercial lending!These types of mortgages have not been in existence long and tend to be slightly more expensive than standard residential lending (which seems to be the norm globally). A commercial mortgage through a retail bank can also be used to purchase land. It cannot however be used for construction finance or to buy a completed tower. Only specialist lenders in the UAE have the ability to lend to clients looking to buy a full tower or want to construct a tower in the Emirates.
UAE Refinance Mortgage
Why utilise a broker?
Finding the right commercial mortgage?
The first step in the process is to undertake a call or meeting with you where we will conduct a full fact find to understand your requirements further.
The second step is for us to analyse the information we have gathered in order to start filtering out the banks that are not applicable.
Based on the information we have collected, the research we have undertaken and the analysis of the products available we will then make a recommendation.
Types of commercial mortgage available
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