(MENAFN) The UAE Central Bank said that mortgages to expatriates will be restricted to 50 percent of the property value, reported Gulf News.
According to a memo issued by the central bank to the country's banks, mortgages to nationals will be restricted to 70 percent of the property value, and extra mortgages will need additional payment.
The bank clarified that any extra mortgages to either will require larger first payment.
However, according to Khalid Howladar, a senior credit officer at Moody's, the move to restrain mortgage loan-to-value by the central bank may not affect the speculation in the property market since much of it is driven by cash buyers.
Howladar said that as a result of the measure, demand for real estate from non-cash buyers is likely to decelerate.
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