Amlak restarts home finance

Amlak Finance, which suspending mortgage lending in 2008, has started accepting new loan applications, Emirates24|7 can reveal.
“We have started lending and we are accepting new applications from the past one week,” a call centre executive for Amlak said.
The Shariah-compliant mortgage provider has launched a “buy-to-let” product with two options offered to the applicants.
Under the first option, Amlak will rent the property on behalf of the mortgagor and adjust the rent received against his/her equated monthly installment.
“The difference if any has to be paid by the mortgagor. The excess will be refunded,” the call centre employee said.
Under the second option, the mortgagor will have to make a 25 per cent down payment with Amlak providing 75 per cent for completed properties based on applicant’s eligibility.
“The current profit rate is7.25 per cent, with the maximum tenure being 25 years,” the call centre executive said.
Amlak, however, is not giving any finance for off plan properties.
Last month, UAE Minister of Economy Sultan bin Saeed Al Mansouri said shares of Amlak will resume trading on the Dubai Financial Market in the second half of the year.
“Our target is to list the company in the second half of this year,” Al Mansouri told reporters on the sidelines of an event in Abu Dhabi.
Although Amlak was planned to be merged with Tamweel to form a government bank in 2008, but that initiative did not materialise. Tamweel was delisted in 2013 after Dubai Islamic Bank acquired the entire mortgage affiliate.
Emaar Properties, Dubai’s largest developer, still has a 45 per cent stake in Amlak and a six-member creditor committee is currently working to address the debts of the mortgage lender.

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