Paying off your mortgage is a dream that many people share. Conversely, the thought of making decades of payments can be devastating. Fortunately, you can reduce the length of your mortgage and save money on interest by making one extra payment each year.

If you’re a homeowner in Dubai, you may be pondering how this strategy can benefit you. On average mortgage term in Dubai is 20 years. That means homeowners in Dubai have an opportunity to pay off their mortgages much faster by making one extra payment each year.

Let’s take a closer look at the numbers. Consider you have a mortgage of AED 1,000,000 with an interest rate of 4% and a term of 20 years. By making one extra payment of AED 10,000 each year, you could pay off your mortgage in just over 16 years. That’s a savings of 4 years and over AED 100,000 in interest charges.

But the advantages don’t stop there. By paying off your mortgage faster, you can free up your cash flow for other expenses and investments. You’ll also have peace of mind knowing that you own your home outright and are not burdened by long-term debt.

Of course, it’s important to note that this strategy may not be feasible for everyone. Before committing to making extra mortgage payments, it’s important to consider your overall financial situation and ensure that you have enough savings and emergency funds. If you are unsure about something, it’s always wise to seek advice from an expert before making any decisions.

In conclusion, making one extra mortgage payment each year can have a significant impact on your finances. As a homeowner in Dubai, you have a great opportunity to pay off your mortgage faster and save money on interest charges. So why not consider this smart financial move and work towards achieving your dream of being mortgage-free?

Connect with 4C Mortgage Consultancy certified mortgage brokers in Dubai and Abu Dhabi and let them help you plan your investment in Dubai. 4C Mortgage Consultants provides the best mortgage consultancy for a resale property, new purchase property, mortgage refinance, off-plan purchase, construction mortgage, project finance, commercial mortgage, buyout, equity release, and non-UAE resident mortgage in Dubai.

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