Tuesday 2 March 2010

Abu Dhabi steps in to cut cost of home loans



The Government has stepped in to reduce the cost of home loans in the capital. Buyers can now obtain mortgages at 5.75 per cent interest, compared with current rates of more than 8 per cent, a saving of Dh2,450 (US$667) a month on a typical Dh2 million loan.

Abu Dhabi Finance, a mortgage provider part-owned by the Government, revealed yesterday that it had received funds from the Department of Finance with which it will cut the cost of borrowing to 1 per cent below the best available.

“Abu Dhabi Finance is one of the tools that the Government is using to stimulate the real estate market,” said Ali Eid al Mehairi, the company’s chairman.

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