Often living abroad comes with a lot of hardship. Many expatriates prefer to have a leased property either to use for residency or investment. Thus, they prefer buying a mortgage instead of a loan for both business and personal use. Even I choose the mortgages over personal loans, considering the advantages and benefits of mortgage and personal loans.
Frequently borrowers consider themselves secure after buying a mortgage, but certain uncertainty and sudden incident cause an effective and foolproof plane to nose dive. Therefore, many mortgages and financial advisor repeatedly recommend buying mortgage insurance or home protection plan while purchasing a mortgage. For expatriates and residents of UAE, there are diverse ranges of mortgage loans for expats in Dubai offered by various lenders.
The mortgage market is very advanced, everything is available online for you to review. Apart from this many mortgage lenders also provide mortgage and loan information on their website to educate the lender about the choices they can have and how these options will benefit their long-term plans.
After purchasing a mortgage or loan, most of the lifetime the borrowers spent repaying the depth. If such a process many things are prone to happen, such as:
- Borrower might get fired or lose a job
- Unable to pay installment due to injury
- Encounter sudden problem e.g. accident or loss in investment, results is a late payment.
All these reasons and many more can result in mortgage loss. Hence, the lender can repossess the claim on property or product. To avoid this repossession, it is wise to get a mortgage or loan insurance. This serves many benefits to both the lender and buyer but it particularly more beneficial to the borrowers. At the same time, it also safeguards the lenders’ interest by ensuring the full payment of the mortgage on behalf of the borrowers. Simultaneously, many banks now offer custom home finance in Dubai. Thus, it had made it easy for borrowers to select the loan option that is more suitable to their needs and financial requirements.
Usually, there are two types of insurances available for borrowers:
- Mortgage lifespan insurance: this is particularly intended for the borrower’s family. It covers all the loan expenses in case the mortgage holder dies during the mortgage lifespan. Thus, the family does not have to evacuate the house, and the entire mortgage will be paid through the insurance coverage.
- Insurance of mortgage installment: this is borrower oriented and it helps the borrower to pay the mortgage installments, due to injury, job loss, or accident.
Mortgages and loans are a very sensitive issue, at the same time it requires careful consideration and comprehensive planning. To avoid any uncertainty while paying back the mortgage it is recommended to purchase mortgage insurance. At the same time, it is advised to check and compare the mortgage fee, consultation fee, notary, and documentation translation fee while purchasing any insurance. At any point in time, you encounter any problem or confusion; you should consult an expert for guidance. This will further help you to modify your choices and customize your mortgage option.