Bankers want more time to save UAE real estate market
UAE bankers have asked for a postponement of 50% cap on mortgages
UAE bankers have asked for a postponement of 50% cap on mortgages.
The Emirates Banks Association met this week to discuss the central bank’s recent tough new limits imposed on mortgage caps for both expatriates and nationals in the UAE. The bankers requested that the UAE Central Bank postpone implementation of the mortgage cap for a month. The bankers would develop guidelines in that month that are the basis for a code of conduct for banks to follow.
Bankers believe such code of conduct would give them an effective hand in managing themselves. It would also buffer against overheated markets based on speculation. The Central Bank surprised markets with amendments that cap mortgages at 50% for expats and 70% for nationals.
“The majority of the banks operating in the country attended the meeting which was held in Dubai and signed on the request to the Central Bank to postpone implementation in order to pave the way for further suggestions and proposals about these ratios to be discussed with the Central Bank later on,” said a source, who declined to be named.
The bankers agreed the Central Bank’s Mortgage ratios will result in negative repercussions for the economy, with the real estate sector majorly impacted.
