Abu Dhabi, United Arab Emirates: The Central Bank of the UAE (CBUAE) has taken proactive steps to ease mortgage loan requirements for customers of banks and finance companies, after taking feedback from the public into careful consideration.
The amendments to the regulations will lift the current 70 year old maximum age requirement at the time of the last mortgage repayment. As part of the modification, the age requirement will now be determined by lenders as per their risk management and lending policies, offering customers greater choice and flexibility.
The amendments will also reduce the early, or partial settlements fee of home loans from 3% of the outstanding balance to 1% of the outstanding balance, or AED 10,000, whichever is less. The reduction in the rate will be a welcome benefit for customers, offering them increased affordability and accessibility.
H.E. Mubarak Rashed Al Mansoori, the Governor of CBUAE, said: “We have carefully considered the feedback that we have received from bank customers across the UAE, and have acted swiftly to address and resolve their concerns. These amendments are designed to ease requirements of mortgage loans and will be applied with immediate effect. We will remain committed towards protecting consumers, as well as enhancing monetary stability in the UAE through policy-making and compliance monitoring.”
In an effort to improve customer experiences and understand consumer sentiment, CBUAE has launched a survey to gauge the level of satisfaction with banks, finance companies and exchange houses across the nation. The results will be used to generate broader consumer trends and key insights that will feed into CBUAE’s review of its consumer protection regulatory framework designed to protect consumers.
CBUAE invites customers to complete the survey by visiting https://www.centralbank.ae.
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