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  • 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.

      1. a. Value of Property less or equal to AED 5 million - maximum 85% of the value of the property.

      2. 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.

      1. a. Value of Property less or equal to AED 5 million - maximum 80% of the value of the property.

      2. 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.