Header
Blog HomeBetterInformedFeatured PropertiesBecoming An AgentFeatured CommunitiesCompany NewsSellingBuyingLeasingRentingLife in DubaiCommercial real estateInvestingProperty ManagementShort term rentalThe expat diariesAbu Dhabi Guide
82 Views

After consideration and submissions from members of Emirates Banking Association, the Central Bank of UAE has agreed to implement a reasonable mortgage cap, with the aim to stabilize real estate market. Set at a mortgage lending limit of 70 to 75% for expats and 75 to 80% for Emiratis, the new limits would be ideal to sustain the market, according to a study by Geopolicity. According the Geopolicity report, the government should also adopt the following measures for controlled growth of real estate market.

 

New Mortgage Cap

  • Reselling duties/penalties on properties within 24 months of initial purchase
  • Strict income assessments to avoid mortgage defaults
  • Prefer fixed rate mortgages over adjustable rate mortgages
  • Secondary market expansion to increase liquidity
  • Adding more transparency in mortgage regulation and lending
  • Improve literacy and awareness among lenders and buyers about financial issues
  • Amplify competition for mortgage lenders and better regulate market

 




0 Comments

Leave Comment

Your email address will not be published. Required fields are marked *

Whatsapp
+971 600 52 2233
Enquire Now.