UAE: Is it wise to re-finance your home close to retirement?

SourceGulf News
SectorReal Estate

Dubai: Let’s say you are approaching retirement with minimal savings in hand, due to which you hope to refinance your house to make ends meet post retirement. This has been the trend in recent years, as indicated by global studies, so there is a need to weigh whether this is a smart money move. Lower mortgage rates can save you hundreds of dirhams on your monthly payments.

Refinancing your mortgage to a new one with a lower rate would then seem to make sense. But what if you’re approaching retirement? Is refinancing a smart move when you’re planning to leave the workforce in five years or less? The answer depends on your unique financial situation and your goal from a refinance. If your main goal is to reduce your monthly costs, refinancing might make sense. But if you plan on moving from your home shortly — in, say, less than five years — then a refinance might not be more...