After greetings,

Please be advised of the following:

First: In line with Article (5) of the Regulations Regarding Mortgage Loans (Circular No. 31/2013), the Central Bank has decided, in agreement with the Sheikh Zayed Housing Programme (SZHP), as follows:

1. To increase the debt burden ratio (DBR) to 60% for the beneficiaries of the Home Finance Program of SZHP;
    
2. To grant the UAE nationals, with long-term loans, the flexibility to obtain housing loans of SZHP, after ascertaining their ability to repay within the DBR limit of 60%;
    
3. Banks may increase the DBR for retirees and senior UAE nationals to 50% so that they can benefit from SZHP housing loans, after ascertaining their ability to repay, within the DBR limit of 50%, and obtaining no-objection from them to raise the monthly deduction from 30% to 50% against the housing loan; and
    
4. To cancel the requirement that the borrower contributes to the down payment of 15% for the beneficiaries of the Home Finance Program of SZHP, for the amount of the loan profits/interest of which are explicitly guaranteed and paid by the federal government.
    

Under the following conditions:

1. That the property to be constructed/purchased through financing is the first house for the UAE national and to be used for his personal residence;
    
2. That the UAE national shall, if the loan amount exceeds the amount profits/interest of which are explicitly guaranteed and paid by the federal government, pay the difference in the down payment to cover the required 15% from his own resources and not from other sources of borrowing; and
    
3. That all other requirements mentioned in the above Regulation and its amendments are complied with.

Second: Since the federal government guarantees and pays the profits/interest on the above home finance, banks may apply 0% risk-weight for the capital adequacy calculation for loan amount profits/interest of which are explicitly guaranteed and paid.

Yours faithfully,