What the new mortgage caps in Dubai mean for property buyers

<div dir="ltr" style="text-align: left;" trbidi="on"> 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.<br /> Before these new regulations were in place, residents could get up to 85% mortgage allowing them a lot more options in buying property.<br /> <br /> 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.<br /> 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.<br /> <br /> This does indeed make life a little harder for property buyers so how can first timers go about with this new rule?<br /> <br /> 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.<br /> Raising the deposit from family members is also an option. If all else fails, the buyer might have to consider cheaper options.<br /> <br /> 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.<br /> <br /> <div class="separator" style="clear: both; text-align: left;"> </div> <br /> <b><span style="font-size: xx-small;">Article source: The National </span></b><span style="font-size: xx-small;"><b> </b>(http://bit.ly/1fbwJX2)</span><br /> <div> <br /></div> </div>

UAE residents might find it harder to get a mortgage these days with the Central Bank's introduction of tighter mortgage limits since O...

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