UAE property buyers can still tap ‘affordable’ mortgages even after latest interest rate hike

UAE property buyers can still tap ‘affordable’ mortgages even after latest interest rate hike

Dubai: Planning to buy a home in the UAE? And worried that the latest interest rate hike - and chances of more to come - will be an extra burden if you take out a mortgage?

You needn’t be, according to a top official with the mortgage-focussed fintech Huspy.

“We must remember that the UAE not only has some of the most competitive property prices among global cities, but the interest rates are very attractive,” said Fouad Chemlati, General Manager for Mortgages at the Dubai-based company.

“In the US, for example, the average interest rate for a 30-year mortgage is over 7 per cent right now.

“The UAE market had already priced in the interest rate increases. That’s why with the last two rounds of (by US Federal Reserve and repeated here) hikes, we actually saw interest rates being reduced, benefiting homebuyers.

“Right now, the lowest 3-year fixed mortgage available is 4.24 per cent. On average, interest rates are at approximately 4.7 per cent for residents and 5.14 per cent for non-residents.”

UAE banks in mortgage over-drive

Local lenders are spreading the word among prospective property buyers, especially end-users and who need mortgage support to get the deals done.

Their messaging is straight-forward enough - lock in the