Understanding the immense worth that Equity release brings to the table is absolutely crucial when it comes to making informed choices. some of the advantages are :
- Competitive interest rates: When obtaining a loan secured against your property, you can often enjoy lower interest rates compared to unsecured personal loans. However, it is important to be aware of the lending restrictions imposed by banks in the UAE. Before proceeding with your loan application, it is advisable to confirm whether the purpose for which you require the loan is permitted.
- Enhanced liquidity: If you are seeking financial support for purchasing your next home, equity release loans can be an excellent choice. These loans provide you with a substantial lump sum of money, making it easier to cover the down payment. Keep in mind that the down payment for a second property is typically higher than that of your initial property, usually ranging from 35% to 50% of the second property’s value.
- Tax exemption: In the UAE, you are not obligated to allocate a portion of your loan towards taxes. Your equity release loan will be completely tax-free.
