U.A.E Central Bank Seeks Banks’ Opinion on Mortgage Ceiling

The United Arab Emirates’ central bank has asked the nation’s lenders for opinion on a planned mortgage ceiling, the state-run news agency WAM reported.

The central bank sent a questionnaire to the lenders requesting their opinion on loan-to-value ratios for individuals buying their first and subsequent houses, WAM said citing the document. It requested the banks to respond by end of January, according to WAM.

The country plans to issue regulations governing the mortgage market in six to nine months, central bank governor Sultan Bin Nasser Al-Suwaidi said in comments published yesterday in state-owned newspaper al-Ittihad.

The central bank last month notified the banks of a decision to cap mortgages for foreigners and nationals at 50 percent and 70 percent of the property values respectively.

The directives were meant to “draw their attention to certain standards that are expected to be adopted under the new system,” Suwaidi said.

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To contact the reporter on this story: Maher Chmaytelli in Dubai at mchmaytelli@bloomberg.net

To contact the editor responsible for this story: Riad Hamade at rhamade@bloomberg.net

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