New UAE mortgage rules "not imminent" : Central Bank Governor

The UAE's Central Bank governor has said new mortgage rules are not "imminent"

[The UAE's] Central Bank Governor Sultan Nasser al-Suweidi has been quoted as saying that there was a "misunderstanding" in the media and that no Central Bank ruling had been issued; only a warning to banks to be prepared for rule changes in the future.

No limits on mortgage lending will be imposed before consulting with commercial banks, and any new rules are not imminent, Dubaid-based newspaper Al Ittihad quotes al-Suweidi as saying.

In December last year, media reports claimed that the UAE Central Bank had issued guidelines limiting expat mortgages to 50 per cent of the property value; under the new guidelines, it was reported that expatriates were limited to borrowing 40 per cent of a property’s value for a second and subsequent homes.

Caps for UAE citizens were reported at 70 per cent for a first home and 60 per cent for subsequent ones.