Wednesday, February 6, 2013

UAE banks confirm 75% mortgage cap wish


Emirati banks have formally asked the UAE Central Bank to cap mortgages at 75 percent of property value for expats and at 80 percent for UAE nationals.
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The Emirati Banks Association (EBA) also recommended limiting the total loan value to eight years’ salary for UAE nationals and up to seven years’ salary for expats.
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The recommendations are contained in the EBA’s response to a notice issued by the Central Bank on December 30 to cap mortgage loan-to-value (LTV) ratios in a bid to prevent overheating the property market and to reduce loan defaults.
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The Central Bank has suggested capping LTVs at 50 percent for expats and 60 percent for nationals.
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Read more: http://www.arabianbusiness.com/uae-banks-confirm-75-mortgage-cap-wish-488524.html

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