Amendments of Mortgage Loans Regulations (Circular No. 31/2013)
Amendments to Circular No. 31/2013 on Regulations regarding Mortgage Loans
After greetings,
Please be informed that the Board of Directors of the Central Bank has issued Decision No. 96/By Circulation/2019 amending Circular No. 31/2013 on Regulations regarding Mortgage Loans.
By this Decision, the age requirement at the time of the last repayment has been abolished, regardless of the nationality. The age should be determined by the lender in accordance with its risk management and lending practices.
We attach herewith a copy of the above Decision and please circulate it internally.
The attached Decision comes into force with immediate effect.
Yours faithfully,
Central Bank Board of Directors’ Resolution No. 96/By Circulation/2019 Amending Circular No. 31/2013 on Regulations regarding Mortgage Loans
Governor,
Having perused the provisions of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organization of Financial Institutions and Activities; and
Circular No. 31/2013 on Regulations regarding Mortgage Loans.
The Central Bank's Board of Directors has issued the following resolution:
Article One:
The text of the second paragraph of item (3) of Article (3) of Circular No. 31/2013 on Regulations regarding Mortgage Loans shall be replaced with the following text:(The maximum age at the time of the last repayment should be determined by the mortgage loan providers in accordance with their risk management and lending policies).
Article Two:
This Resolution shall be communicated to whomsoever is concerned for implementation, and shall be published in the Official Gazette in both Arabic and English.Amendments to Circular No. 31/2013 on Regulations regarding Mortgage Loans
After greetings,
Please be informed that pursuant to the Board of Directors of the Central Bank’s Decision No. 31/2/2020, Circular No. 31/2013 on Regulations regarding Mortgage Loans has been amended.
By these amendments, the Loan to Value (LTV) ratio for real estate was increased for the first time buyers by 5%, in order to enhance the affordability of home purchases.
We attach herewith a copy of the above amendments and please circulate these internally.
The attached amendments come into force with immediate effect.
Yours faithfully,
Central Bank Board of Directors’ Resolution No. 31/2/2020 Amending Circular No. 31/2013 on Regulations regarding Mortgage Loans
Governor,
Having perused the provisions of the Decretal Federal Law No. (14) of 2018 Regarding the Central Bank & Organization of Financial Institutions and Activities; and
Circular No. 31/2013 on Regulations regarding Mortgage Loans.
The Central Bank's Board of Directors has issued the following resolution:
Article One:
The texts of paragraphs (A.a), (A.b), (B.a) and (B.b) of Item (2) of Article (3) of Circular No. 31/2013 on Regulations regarding Mortgage Loans shall be replaced with the following texts:A. UAE Nationals
• First House/Owner Occupier
Each borrower can only claim one property under this category.a. Value of Property less or equal to AED 5 million - maximum 85% of the value of the property.
b. Value of Property more than AED 5 million - maximum 75% of the value of the property.
B. Expatriates
• First House/ Owner Occupier
Each borrower can only claim one property under this category.a. Value of Property less or equal to AED 5 million - maximum 80% of the value of the property.
b. Value of Property more than AED 5 million - maximum 70% of the value of the property.
Article Two:
This Resolution shall be communicated to whomsoever is concerned for implementation, and shall be published in the Official Gazette in both Arabic and English.