The mortgage you need will depend on what you plan to do with your property - live in it, or rent it out.
But it also depends on what type of interest rate you want, how you intend to pay back your loan, and how much of a deposit you have to put down.
The first thing to consider when applying for a mortgage is how you intend to use your property.
If you'll be living in it, a residential mortgage will be suitable for you. If you're intending to rent out your property for an income source, this could require putting down a higher deposit.
There are two main types of interest rates you'll see when comparing mortgages:
A fixed-rate mortgage gives you a guaranteed rate of interest for a fixed term, typically ranging from 1 to 5 years.
This means your monthly repayments will stay the same each month, as the interest you pay is fixed for the duration of your term.
If the EIBOR (Emirates Interbank Offered Rate) increases during the term of your mortgages, a fixed rate could prove to be a lower cost option than a variable rate.
On the other hand, if the EIBOR goes down, you could end up paying more interest on a fixed rate than you would with a variable rate.
Explore: Our fixed-rate home loans
A variable-rate mortgage has an interest rate that rises and falls in line with the EIBOR.
If the EIBOR rises, the interest rate on your home loan will go up, and your monthly repayments will increase. If the EIBOR falls, your interest rate will go down, and your monthly payments will decrease.
Explore: Our variable-rate home loans
Most mortgages are capital repayment, which means you pay back a chunk of your home loan every month as well as the interest accrued.
If you're buying your first home, you could be eligible for a mortgage at a higher LTV (loan to value) ratio than if you're buying a second property.
Your LTV ratio is your loan amount as a percentage of your property's value.
You could get up to an 80% LTV mortgage as a first-time buyer, which means you'll only need to provide a 20% down payment.
Explore: Our first-time buyer home loans
Learn about how to buy a property and how the process works with our guide.
