UAE banks group considers asking for ease in mortgage rules

UAE banks group considers asking for ease in mortgage rules:

The United Arab Emirates’ banking group is considering whether to ask the central bank to relax mortgage lending rules to stimulate a fragile real estate market, sources familiar with the matter said.

At the moment, first-time buyers of a home worth up to 5 million dirhams can only borrow up to 80 percent of the property value if they are UAE citizens, while the cap is 75 percent for foreigners.

The UAE Banks Federation’s retail banking committee has proposed that the limit be raised to 85 percent for UAE nationals and 80 percent for foreigners, the sources said. They added that the CEO Advisory Council, made up of bank chief executives, is considering the proposal and, if approved, will suggest it to the central bank.