Two years after the issuance of the Central Council’s decision

Two bankers: Banks apply the age requirement of "75 years" to repay the mortgage

  • Most of the banks have good home finance offers for the citizen and resident.

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  • Ahmed Arafat: "The banks seek to revive the market, in conjunction with the delivery of projects and housing units by companies, as the Expo approaches."

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Two bankers reported that banks raised the maximum age for a citizen in real estate financing to 75 years, with the last installment being paid instead of 70 years, after the banks made reservations over the past two years in implementing the decision of the Central Bank issued in October 2019, which left the banks the freedom to determine Age, as the application collided with the refusal of insurance companies to provide insurance coverage for real estate loans up to this age.

He explained to "Emirates Today" that with the approaching arrival of delegations participating in "Expo 2020 Dubai", starting from next April, banks are currently providing a range of real estate financing facilities, allowing easy ownership of housing units and lands for both citizens and residents alike, stressing that Residents can now buy and own land, and choose appropriate designs to build housing on.

They pointed out that many of the developing companies are preparing to hand over the units that they have established in preparation for the exhibition, so banks take initiative to provide facilities for the purpose of benefiting and moving the market to a greater degree.

Market revival

In detail, the banker, Ahmed Arafat, said that “banks seek to revive the market, in conjunction with the handover of real estate companies and developers projects and housing units, with the approaching Expo 2020 Dubai, by providing facilities in payment and interest rates,” explaining that “developers are preparing Currently, the units will be delivered, and some of them have already started handing over, as the delegations participating in the exhibition are expected to come from next April.

Arafat added that "most banks have good offers for citizens and residents, especially since the latter is now able to buy and own land and choose the design that suits him, unlike the case in the past when he was not allowed to do so."

And he indicated that banks have also opened the number of years of financing for individual citizens, and those who own companies among them, so that the end of financing is up to the age of 75 years, instead of 70 years, which was applied as a ceiling in the past.

He pointed out that banks finance the purchase of land for citizens and residents at a rate of 65% for the first, 60% for the second, 85% for building the first residence for the citizen, and 80% for the resident for the same purpose.

He pointed out that financing rates are also very good at the present time, and are currently revolving around 2.99% during the first three years, after which they become 3.49% decreasing.

Age cap

For her part, the banking expert, Sheikha Al-Ali, said that “banks have finally implemented the Central Bank’s decision issued in October 2019, which opened the age ceiling for them to be set in accordance with their internal policy, after two years of non-implementation, as a result of the difficulty of insuring real estate loans that extend Up to 25 years ».

She explained that "banks have resorted to their insurance companies to solve this problem, and the citizen borrower can now pay the last installment at the time of reaching 75 years instead of 70 years in the past."

Al-Ali added that banks provide facilities to activate real estate financing now with the approaching Expo 2020 Dubai, as additional units of real estate are expected to enter the market, noting that the current prices for ownership are attractive to investors, so many tenants initiate to buy units and pay their installments instead of the annual rent. .

It is noteworthy that the Central Bank issued a decision on October 10, 2019, in which it stated that it had taken proactive steps to reduce housing loan requirements for bank customers and finance companies, after taking into account the opinions and comments of citizens and residents.

The amendments to the regulations include abolishing the age limit requirement when paying the last installment of the value of the mortgage, regardless of the borrower’s nationality at the time of the last payment. It also includes granting lenders the right to set the maximum age for mortgage repayment according to their risk management and lending policies, allowing customers more Of options and flexibility.

- The application previously collided with the refusal of insurance companies to provide coverage for loans.

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