Currently, high prices of real estate properties make it quite difficult for people to purchase their dream house. However, home loan makes it easy for them by funding the maximum of the total cost of property. This loan is available for one who is willing to purchase a house. The property can be mortgaged with the bank or other non-bank lending organizations until loan repayment. The lender will hold title deed of the house till the complete loan amount is repaid along with interest rates within scheduled time. Interestingly, this loan may be taken not only for buying property but also for construction as well as renovation of house.
Benefits of borrowing home loan in Dubai
Still confused? Thinking whether it is at all beneficial to avail home loan in Dubai? Well, check out the following benefits that you can get by borrowing home loan:
- Zero prepayment charges- As compared to other loans where the lenders usually charge prepayment penalties on the payment done towards loan, there are no prepayment penalties on home loan with floating interest rates. Well, as the term suggests, in floating interest rates, EMIs can fluctuate according to market dynamics, i.e. the interest rates decrease or increase. Therefore, whenever you have extra money, you may use it for making payment in parts towards home loan and thus reduce your burden.
- Make improvement in credit score- Considering the fact that you already have good credit score and also have taken other personal loans, a home loan may help to add extra point to credit mix by resulting in small yet significant rise in your credit score.
- Balance transfer ability- In case of home loan in Dubai, you may transfer this loan to different lender if you find that you can get loan at lower interest rate from that lender.
- Pay in easy installments- For one who is unable to purchase house with own fund, then home loan is the best option. This loan may be repaid in simple monthly installments and therefore, you can easily fulfill your dream of buying a house.
- Long repayment tenure- Amongst other loans, a home loan has maximum repayment tenure that can also go up to 30 years. In this way, you can decrease the heavy burden of equated monthly installments thereby extending this tenure.
- Get capital appreciation- You will be benefited from increase in price of property over the time.
Know about Home Loan EMI Calculator
This type of calculator helps in calculating loan installment, that is, EMI towards a home loan. It is quite easy to make use of home loan calculator and it also acts as the best financial planning device for any home buyer. Coming to EMI, it stands for the Equated Monthly Installment and it includes total repayment of principal amount as well as interest rate on outstanding amount of the home loan. A longer tenure of loan can help you to reduce your EMIs.
How does calculation of EMIs help in planning your house purchase?
A good home loan calculator of EMI gives perfect understanding of amount that may be paid towards EMIs as well as helps you make informed decision about outflow towards home loan every month. This helps you to get an estimate of loan amount that may be availed as well as assists you to assess own contribution requirements as well as cost of property. So, knowing EMIs is vital for calculation of loan eligibility as well as planning out your own home buying procedure effectively.
How to use home loan EMI calculator?
- All you have to do is to give the following inputs to arrive at your EMIs
- Loan Amount: The desired amount of loan that you want to avail
- Loan Tenure: The desired loan term for which you want to avail home loan should be given. A longer tenure helps in improving your eligibility for loan
- Interest Rate: Home loan interest rate should be given.
Go to MoneyDila, A leading Private lender for Home Loan in Dubai
MoneyDila is one of the leading financial portals in UAE that is known to provide diverse financial services to the customers. It is the best platform if you wish to avail home loan in Dubai with best interest rates. It ensures complete safety as well as security and offers loans from popular banks such as Dubai Islamic Bank as well as Islamic Bank in UAE. Indeed, getting home loan is made easy with MoneyDila.