Showing posts with label Mortgage banks. Show all posts
Showing posts with label Mortgage banks. Show all posts

Friday, June 7, 2019

Amendments to UAE mortgage laws

President of Emirates Banks Union: A close change in the mortgage system

The Chairman of the Union of UAE Banks, Abdul Aziz Al Ghurair, has announced the launch of the "Integrated Mortgage System" initiative in cooperation with the land and property departments in the UAE and to the benefit of all parties from real estate companies, banks and clients.

Al-Ghurair said during the Ramadan session with the media in Dubai on Wednesday that the initiative in its first phase, which includes proposals for amendments in the laws of the mortgage and systems that affect the sector, explaining that the initiative will be put forward with the proposals at the government level at a stage in the future and then develop this system And to define their terms.

Al Ghurair added that the Union is currently studying the best international legislation and practices in the field of mortgage in order to maintain the continuous growth and stability in the real estate sector so it is necessary to amend laws and regulations to serve the growth objectives for a long time.

Al-Ghurair revealed that the mortgage system includes the easy access of the client to the mortgage directly from the bank without the permission of the land and property department in the emirate to register the property. This step started by Mashreqbank in cooperation with the land department in the UAE capital. Shorten the time required to execute a mortgage within days rather than weeks.

The system of "integrated mortgage"

Enhances investor confidence in the real estate investment sector
"The integrated mortgage system will strengthen the confidence of businessmen in the real estate investment sector by providing a number of procedures for investors, such as dealing with late real estate installments and facilitating the holding of real estate bets." Development of integrated service systems for customers, providing services to customers other than banking services such as maintenance services and finding a real estate broker.

Al-Ghadeer pointed to the maturity of the consumer credit system in conjunction with the strengthening of risk management and the provision of more credit data to customers and low rates of stumbling, adding that there are a number of pressure on the margins on profits and revenue expected to perform the level of banks during the current year.

The position of the real estate and banking sector of the new mortgage system

Many real estate and banking professionals praised the UAE Central Bank's integrated mortgage system last Wednesday, which allows financial institutions to lend customers 80% of the value of the initial housing unit if it is worth less than AED 5 million and 75% for customers. Foreigners in accordance with the same conditions and also prevents the opening of the door to lend more than 50% of housing units on the map or before the start of the work of its inception.

The workers explained that this system is balanced because it places points on the letters, where the process is organized between banks and finance companies and workers in the field of real estate investment and at the same time establish correct and clear foundations to protect interests and protect rights and promote the increase in the volume of transactions and attract those interested in buying and owning private property buyers for real estate.

Real estate investors and bank employees added that the integrated mortgage system was issued in time to keep abreast of developments in the real estate investment market in the UAE and is part of the main elements that complement the development equation and the real estate industry. For customers who want to own a residential unit or start a long-term investment

"The integrated mortgage system launched by the Central Bank is an important step towards the right path, especially as the UAE real estate market is undergoing a new boom.