According to an agreement between the Central Bank and the Emirate Housing Authority

Exempting citizens in Abu Dhabi from the down payment for the purchase of the first home

The Central Bank confirmed that it had agreed with the Housing Authority in Abu Dhabi to consider the amount from which citizens are exempted from the housing loan, estimated at 500 thousand dirhams, as an advance payment if the citizen wishes to take additional bank financing to buy his first home.

It is noteworthy that the Housing Authority loan for citizens in Abu Dhabi, for the purchase or construction of the first house, amounts to two million dirhams, according to which the citizen receives an automatic deduction from it of 500 thousand dirhams, that is, he pays only 1.5 million dirhams.

According to the Central Circular No. 4897/2020, of which Emirates Today obtained a copy, “Banks and financing companies must consider the amount of 500 thousand that the citizen is exempt from paying to the Housing Authority is the 15% down payment imposed on citizens. , To take additional bank financing, according to the mortgage system issued by the bank.

According to the new agreement between the Central Bank and the Housing Authority, the latter will pay the 500,000 dirhams to the banks for the borrower, as a down payment, in case he desires to take additional financing over the housing loan for citizens to buy or build his first home.

The Central Bank stated in its circular: “We hope to inform you that according to Article 5 of the mortgage loan system, the Central Bank has agreed with the Abu Dhabi Housing Authority that the amount from which the citizen is exempted from the value of the housing loan granted by the Authority can be considered by mortgage loan providers. It is considered as the required down payment of the required 15% of the property's value (or part of the payment if the exemption amount does not cover the required 15%), when granting loans to buy homes to citizens in accordance with the above system and its amendments, with the following conditions: That the property to be financed is the home The first is for the citizen and is used for his residence, and for the citizen to pay the difference in the down payment to cover the 15% required according to the system if required, from his own sources, and not from other borrowing sources, and the property value does not exceed five million dirhams, in addition to adhering to the other requirements mentioned in Mortgage system.

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