Unlock Your Property Value with Best Equity Release Deals
Have you been searching for an easy and effective way to raise a lump sum for personal or business purpose? Equity release mortgage with low, fixed interest rates would be a perfect choice. Equity release also known as a loan against property. An equity release mortgage enables customers to borrow money by securing their property as collateral. Property equity release mortgage offers a safe way to access some of the equity tied up in your home or property in the form of a cash lump sum or a series of flexible payments whilst retaining full home or property ownership.
Understanding of Equity and Equity Release
Equity refers to the ownership or value of an asset such as house or a company. It represents one’s share of the asset’s value. For instance, if your home is worth one million AED and you owe 400,000 AED on it, your equity is 600,000 AED (1,000,000 AED – 400,000 AED). It’s like the piece of the pie you get once all your bills are paid off.
When someone borrows a loan based on the value an existing property is referred as an equity release. These funds can be used for anything, and the interest is calculated at mortgage rates.
Equity release is a financial product that enables homeowners, usually those who are retired or approaching retirement age, to access the equity tied up in their property. Equity refers to the difference between the market value of a property and any outstanding mortgage or loans secured against it.
The main purpose of property equity release is to provide homeowners with a way to convert a portion of their property’s value into a tax-free cash lump sum or regular income stream while still being able to live in their home. It can be a useful option for individuals who have significant wealth tied up in their property but may have limited income or savings.
How Does Equity Release Work?
- The lender will usually provide you with a lump sum of money based on the value of the property and your financial circumstances. You then make monthly payments plus interest to repay the loan over a specified time period.
- If you do not make the payments, the lender has the right to seize your property. It’s effectively the same as getting a personal loan that you use to finance almost anything. A home equity release loan may be a better way to convert the equity you’ve built in your home into cash, especially if you spend that money on home renovations that boost the value of your home.
- Two types of equity release is available such as lifetime mortgage and home reversion. With dozens of banks and financial institutions offering various types of equity release packages, finding a suitable equity release mortgage on your own is tricky and challenging. Let Cozmo Mortgages make this process as hassle-free and painless as possible. Finding the best equity release deals in Dubai and refinancing loans for people and businesses is what we do every day. We assess people’s needs, evaluate their financial condition, scour the market for the right financing option and negotiate the best possible deal. If you are looking for expert and honest advice on equity release deals or mortgages available in Dubai, our team will be your touch-point through the entire borrowing process.
Do You Need an Equity Release?
Are you wondering is equity release right for you? Releasing equity is a cost-effective approach to raise funds for any purpose, be it to clear outstanding loans, finance property renovations, maintain business cash flows, invest in another property, or pay for your child’s education. If your business has an expansion plan or project that traditional lenders, such as banks, are unwilling to support, or if you wish to benefit from a tax-free option, equity financing is your ideal choice.
We recognize that most of our clients have unique demands, objectives, and varied financial complexities that must be considered when selecting a property equity release. At Cozmo Mortgages. we prioritise a comprehensive analysis of your financial circumstances, as it helps us to make the optimum recommendations for you. Having a solid understanding of your needs and financial condition is the first stage of an important process, and it serves as the basis for being actively involved in your financial journey.
Why Choose Cozmo Mortgages As Your Property Equity Release Advisor?
Cozmo Mortgages is one of the most trusted mortgage advisor in Dubai that offer personalized services and solutions to its clients across the UAE. Licensed by the Dubai Economic Department (DED) and the Dubai Real Estate Regulatory Authority (RERA), we have a team of highly qualified and experienced professionals with a friendly approach to handle all the paperwork and negotiation for you.
If you are looking for best equity release deals, At Cozmo Mortgages, we strive to deliver excellent service standards for both new and existing clients. We are dedicated and enthusiastic about providing you with the best property equity release deals. Our team follows an open and transparent communication strategy that keeps you updated at every stage of the loan process, including after settlement. Once we’ve determined precisely what you want to accomplish, we develop a tailored strategy, from gauging the strategy’s suitability and practicality to identifying the best lending partners. Based on your repayment capacity and creditworthiness, we fully assess the list of qualified lenders, their rates, and any current offers. We gather the required information for the loan application and submit it to the selected lenders who meet the strategic parameters.
Thinking about taking an equity release mortgage? Our independent financial experts can provide valuable advice and help you examine your circumstances to determine if this is the best option for you or if there are better alternatives available. Give us a call at+971 569616109 for a free consultation.
Frequently Asked Questions
Who is eligible for an equity release mortgage in Dubai?
In order to qualify for an equity release mortgage in Dubai, applicants must be at least 60 years old, possess a property with no outstanding mortgages, and have permanent residency or citizenship in the UAE. Lenders’ eligibility requirements may differ.
Why would I release equity in my home?
Releasing equity in your house might provide access to a large sum of money for a variety of objectives, such as home upgrades or boosting retirement income, but it may decrease the value of your estate and limit the inheritance of your heirs.
What are the advantages of equity release mortgage?
Equity release mortgages allow homeowners to liberate the value locked up in their property, providing a tax-free source of cash for retirement or other financial needs. These mortgages allow people to stay in their houses while receiving funding, without having to make monthly payments, giving them financial freedom in the future.
Is equity release safe?
Equity release can be a safe financial alternative for some people, but it’s crucial to weigh the risks and advantages carefully. Equity release programs, such as lifetime mortgages or home reversion plans, enable homeowners to gain access to the value of their property. While they can provide much-needed funds for retirement or other financial requirements, it is critical to thoroughly understand the terms and circumstances, including interest rates and potential inheritance implications. Seek financial counsel and examine alternatives before making a commitment, as making an informed decision is critical to ensuring safety and suitability for your unique circumstances.
How much amount can I borrow with an equity release loan?
You can normally borrow up to 85% of your property’s current value as a loan. When it comes to equity release loans, different institutions have varied terms and conditions. Resident expats, for example, may be limited to a maximum loan amount of 60-80% of the property value. Non-residents, on the other hand, may be subject to even tougher terms, such as a borrowing cap of only 50% of the property’s value.
Is equity release tax free in UAE?
In the UAE, you don’t need to set the amount of your loan for taxes. As the equity you release is tax-free, once you get funds into your bank account, you can use that amount for any purpose you want. You won’t lose any money in tax payments. As tax laws and regulations can change over time, it is advisable to consult a tax professional regarding the latest equity release in the UAE.