In a salary transfer mortgage, usually your employer transfers your salary directly to the bank that holds your mortgage. This ensures that your payments are timely and automatically deducted from your account. Additionally, your employer gives an undertaking that if you leave your job or exit the UAE, your end-of-service benefits (gratuity) will be paid to the same bank.
Your salary transfer directly impact on your mortgage payment in getting lower interest rates, as many banks offer better mortgage rates if you agree to a salary transfer. It is more secure for banks and results in possibly better approval chances.
In contrast, non-salary transfer, there will be higher interest rates, more flexibility as you are not tied to moving your salary, and it is suitable for self-employed or expats with income outside the UAE.
