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UAE residents might find it harder to get a mortgage these days with the Central Bank's introduction of tighter mortgage limits since October 2013.
Before these new regulations were in place, residents could get up to 85% mortgage allowing them a lot more options in buying property.

Expatriates buying a property for under Dh5 million must now produce a minimum deposit of 25 per cent, rising to 35 per cent for properties above Dh5 million. For second properties, the minimum deposit is 40 per cent.
Emiratis have it slightly easier. But they still need a 20 per cent deposit for homes under Dh5 million, rising to 30 per cent for homes over Dh5 million, and 30 per cent for any subsequent properties.

This does indeed make life a little harder for property buyers so how can first timers go about with this new rule?

Mr. Philliskirk, a mortgage expert says: if you have other properties either in the UAE or overseas, you could raise funds by releasing some equity from that although first time buyers won't be in this position.
Raising the deposit from family members is also an option. If all else fails, the buyer might have to consider cheaper options.

Property prices in the city have been forecasted to rise 15 - 20% this year hence making it even more difficult to come up with a deposit fast enough. It might be better to invest in a cheaper property today which will rise in value in line with the wider market making you a profit towards the deposit.


Article source: The National  (http://bit.ly/1fbwJX2)

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