The governor of the UAE Central Bank has said that there have been no rulings issued about mortgage lending limits.
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The UAE central bank has stated that it will not impose limits on mortgage lending without consulting commercial banks, the Central Bank governor said on Monday.
Furthermore, new rules are not imminent, Sultan Nasser al-Suweidi added.
Suweidi was quoted as saying by Al Ittihad that there was a misunderstanding in the media, and no central bank ruling had been issued, only a warning to banks to be prepared for rule changes in the future.
The central bank is working on new rules for the property mortgage industry but they will take at least six to nine months to emerge, Monday’s Al Ittihad newspaper quoted Suweidi as saying in an interview.
Reuters reported that a circular sent to commercial banks by the central bank last month advised that mortgage loans for expatriates should not exceed 50% of the property value for a first purchase of a home, and 40% for second and subsequent homes. Caps for UAE citizens were set at 70% for a first home and 60% for subsequent ones.
It is thought that any such mortgage cap could affect Dubai’s recovering property market and possibly stall growth.