UAE said to limit expat mortgages to 50%

Sources say central bank has decided to cap home loans for foreigners buying property


A cap is a sensible idea in principle but 50% is far too low. What about those of us who have been diligently paying down our previously underwater mortgages to refinance on better terms??? It would be more reasonable to enforce a 70% LTV cap across the market. Let's hope this is only a temporary measure.


May be a 80:20 on 1st mortgage and 50:50 on 2nd onwards will help 1st time buyers and then will stop speculators who will be buying more than 1 property as investment rather than usage.


They cannot be so naive!!! They need to take measures to avoid bubble but not to kill the property market and affect so badly the economy after seeing signs of recovery!! Why after people start to trust again this market the Central Bank wants unwiselly to force a farewell goodbye for any possible trust in the future !!! I m currently buying a house, got my loan, and I feel so disgusted as I feel I did a very bad investment should bank implement such a new Law!!!!


Not sure what ist he logic behind this move may be an 80:20 or 75:25 for expats would have been reasonable. This will basically kill the End User Buyers demand.
Speculators actually play it with Cash and change in mortgage rules dont impact them.
To control speculation Central Bank should make sure Banks lend based on Average LTV for past 2-3 yrs, rather than current market value whcih may be hot due to speculative push.
Govt of Dubai/Land Dept should come up with some control measures that Hot Money & Black Money from conflict zones and developing counries don't get parked in Real Estate in Dubai as safe haven deposits. This actually is pushing the price up without any significant increase in demand from end users.
The mad rush of 2005-2008 seems to be getting back into action.


A brilliant move by the Central Bank. This will curb speculators and bring in genuine investors/home owners.


So, Einstein, how many genuine potential home owners have 50% to put down?


Certainly NOT a good move and will hurt real estate recovery. Bankers are shocked as none of them are consulted prior to implementation/announcement of it.
What happens to those who already have the pre-approvals from the banks and have paid 20% down payment and likely to close the deal in next 30 days?? All of them will loose if banks are forced to implement this rule with immediate effect.
Once again it shows that rules are announced without discussing with the relevant sector and aren't well thought of. It will discourage end users.
Central bank should allow first mortgage at 80-85% and second mortgage at 50-60%...that will make more sense and regulate the market as well.

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