(MENAFN- Khaleej Times) Chief executive officers of lenders in the UAE plan to hold a meeting with the Central Bank next week to discuss the regulator's plan to cap mortgage loans, a person familiar with the matter said.
Heads of retail from members of the Emirates Banks Association, which includes lenders such as Emirates NBD and HSBC Holdings, will meet on January 6, three people familiar with the matter said, declining to be identified because the details are private. The CEOs meeting with the regulator will follow, one of the people said.
The UAE issued guidelines on December 30 to restrict mortgages for expatriates to 50 per cent of the value of a first home, according to Central Bank guidelines obtained by Bloomberg News. Home loans to UAE citizens can be as much 70 per cent of the value, according to the circular. There were no loan-to- value limits earlier.
Banks will request the Central Bank to raise mortgage limits for expatriates to 75 per cent of the value of a first home and the UAE nationals to 85 per cent, Al Khaleej reported on Thursday, without saying where it got the information. Lenders will agree to Central Bank limits on mortgages for second homes, the newspaper reported.
According to the Central Bank circular, foreigners could obtain mortgages of as much as 40 per cent of the value of a second property, while UAE citizens could get 60 per cent.
The restrictions follow a recovery in home prices in Dubai and government plans for projects including a district boasting the world's biggest shopping mall and five theme parks.
The Central Bank's public relations department declined to comment when contacted by Bloomberg News on Thursday. A spokesman for HSBC declined to comment, while a spokesman for Emirates NBD was not immediately available. The Emirates Banks Association did not immediately respond to an e-mail.
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