By Andy Sambidge
Abu Dhabi Finance aims new product at overseas investors in UAE real estate.
Abu Dhabi Finance on Sunday announced the launch of a new mortgage product aimed specifically at overseas investors in the UAE's struggling real estate market.
‘Compass’ offers salaried non-residents wishing to invest in residential property in the capital up to 75 percent mortgage finance. Self employed investors are eligible for a maximum of 70 percent finance.
The ‘Compass’ mortgage offers a minimum loan amount of AED250,000, with the maximum amount depending on the individual applicant’s circumstances.
Other features of the new product include maximum mortgage tenure of 30 years, an upper age limit of 70 at loan maturity, and the option to repay up to 10 percent of the outstanding loan amount once per year without incurring any early repayment charges.
The mortgage is expected to appeal to buy-to-let investors, as well as those seeking equity release and remortgaging.
Philip Ward, CEO of Abu Dhabi Finance, said: “We know that there is a strong demand for mortgages for non-residents which we are now in a position to help to satisfy. Our non-resident product, Compass, will also provide an option for those expats who are here on a fixed term contract and expect to be transferred to other destinations. With our Compass mortgage, they can still invest in property in Abu Dhabi with confidence.”
Abu Dhabi Finance was launched in 2008 and has since grown to cover more than two-thirds of the property market in Abu Dhabi.
Developers currently covered include
, The Tourism Development and Investment Company, Capitala, Green Emirates Properties and Profile Group Properties.
I wonder... why anybody is not discussing about Mortgage Re-financing for existing borrowers. In most other parts the world... this type of financing has major share in Lending business.. This type of financing kicks-in when Interest rate comes down... or when it is quite clear that in the short and medium term the interest rate may be lowered. In fact such moves automatically puts some kind of downward pressure on interest rates thru competition and efficiency. It is win-win situation for Consumers and Economy in general.