United Arab Emirates lenders should be allowed to offer expatriates mortgages for as much as 75 percent of the value of their first home purchase, the chairman of the country’s bank association said.
The limit should be reduced to 60 percent for a second home loan and 50 percent for properties under construction, Emirates Banks Association Chairman Abdul Aziz Abdulla Al-Ghurair said. The association has submitted its proposals to the central bank, he said.
The recommendations follow the regulator’s move last month to inform banks of its intention to restrict mortgages to foreigners and nationals in the second-biggest Arab economy. The central bank proposed a 50 percent loan-to-value limit for expatriates compared with no cap previously. Property prices in Dubai, which suffered one of the world’s worst real-estate crashes after the 2008 global credit crisis, started to recover last year.
Emirates Banks Association Proposes 75% Mortgage Cap - Bloomberg
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