UAE banks seek talks over expat mortgage cap

Posted by: abusidra Sunday, 6 January 2013 11:44 AM[UAE] - UAE

UAE Central Bank took a good decision which was al though late but better than never. Central Bank should stand by their decision and not bow to the Banks or internal pressure from lobbyists which made a mess of Dubai and of people's life by irresponsible banking and one sided rules. The Central Bank rules are like you keep an eye on your children when they are out for school, shopping or playing, this is not curtailing their independence or decision but it is caution /setting limits which is required of parents.

Posted by: Ayoola R Akanni Thursday, 10 January 2013 3:48 PM[UAE] - Nigeria

Banks will reportedly request that the UAE Central Bank raise mortgage limits for expats to 75 percent of the value of a first home and 85 percent for Emiratis.

Posted by: Prudent Management Partners JLT Saturday, 5 January 2013 10:34 AM[UAE] - UAE

Debt equity ratio of 2:1 for expats and 3:1 for nationals can be considered very healthy.

More balance can be attained by reducing tenure of the loan to 15 years max for expats and 20 years max for nationals.

The mortagae holders will reach the desired ratios by Central bank in 5-6 years time, which is very healthy.

Posted by: Navin Sunday, 6 January 2013 11:43 AM[UAE] - UAE

Debt Equity ratio for a house purchase!!! what next buy back of house equity, capitalization of rent and depreciation of brooms and bins! how about setting KPI's for house buyers.

Posted by: Awi Sunday, 6 January 2013 11:41 AM[UAE] - UAE

Dear Prudent Management Partners JLT,
You seem not very qualified for such a statement.
If this 50% rule were in place 2 years ago, I would not have been able to afford and buy the house I am currently living in. It's the only property I have in the UAE. By buying a house I am able to save part of my housing allowance. It shows also how attached and loyal I am to the country that provides me with a stable income.
But if I would not have been able to do so, I am not sure if I would still be around. I would have left the UAE. Not only does my own property save money, but it gives me a feeling of belonging and stability. I also don't have to deal with greedy landlords any more.
A 50% cap won't help anybody!! There are better ways to stop another real estate bubble, e.g. higher transfer fees if a property is sold within a certain timeframe.
My 2 cents worth....