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.