The United Arab Emirates central bank issued new guidelines today that restrict mortgages to expatriates at 50 percent of the value of the property, according to three bankers who have seen the circular.
Home loans to U.A.E. citizens that banks may provide can be as much 70 percent of the value of the property for the first house and 60 percent for a second house, two of the bankers said, declining to be identified because the information isn’t public yet. Expatriates can get mortgages of as much as 40 percent of the value of a second property, the bankers said. Nobody was available at the Abu Dhabi-based central bank to comment when Bloomberg News called outside office hours.
“We will be in discussions with the central bank on the implications of the circular for mortgage lending and the real- estate industry and how the new rules will be implemented,” Suvo Sarkar, the head of retail banking at Emirates NBD PJSC (EMIRATES), the U.A.E.’s biggest bank by assets, said by telephone today.
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