Sunday 27 January 2013

Banks eye loan ratios in UAE mortgage cap debate - The National

Commercial lenders will attempt to head off a sharp tightening of borrowing limits for home buyers this week by providing the UAE Central Bank with the sector's view on its controversial mortgage cap proposals.

Reassurances from the Central Bank last week that it had not yet imposed new limits on home lending brought "relief" to the industry, according to one banker who asked not to be identified.

Last month, a circular was sent to banks that restricted borrowing for expatriates to 50 per cent for the first property and 40 per cent for subsequent properties. Emiratis will be able to fund up to 70 per cent of their first home via mortgage loans and 60 per cent for any further purchases.
Banks eye loan ratios in UAE mortgage cap debate - The National

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