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01 March 2024

UAE banks seek amendment of rules on mortgage loans cap

By Staff

The CEOs Advisory Council of the Emirates Banks Association discussed Central Bank notice on Mortgage Loans Cap during this year’s second consultative meeting which was held on Wednesday in Dubai, where the council approved the proposal that has been drafted by the Consumer Banking Sub-Committee recommending to amend some rules listed in the notice concerning the maximum Loan To Value ratios permitted for mortgage loans to UAE nationals and expatriates, and decided to send it to the Central Bank for consideration.

The meeting was headed by AbdulAziz Abdulla Al Ghurair, Chairman of Emirates Banks Association, where key topics and recent updates related to banking industry were reviewed, primarily the Mortgage Loans Cap to UAE nationals and expatriates. Al Ghurair praised the ongoing cooperation between the Emirates Banks Association and the Central Bank in various issues related to the banking sector.

In its first meeting in 2013, CEOs Advisory Council of the Emirates Banks Association asked the Consumer Banking Sub-Committee to prepare a comprehensive proposal approved by all members. The proposal included a number of issues related to Loan To Value Ratio, type of property (completed or under-construction) and the nature of the investor whether resident or non-resident.

Post above CEOs Advisory Council first meeting, the Emirates Banks Association then requested the Central Bank to postpone the implementation of the regulation for 30 days in order to allow banks to assess and put forward relevant suggestions.