RAK Properties hails new mortgage rules
Ras Al Khaimah, December 22, 2013
RAK Properties, Ras Al Khaimah-based biggest property developer, has lauded UAE Central Bank’s new mortgage rules as ‘a major step in the real estate sector’s journey towards greater maturity.’
By virtue of the new rules, UAE nationals can get maximum loan amount equivalent to 80 per cent of property value - for a property with a value of less than Dh5 million($1.4 million).
For property worth more than Dh5 million, the loan amount will be capped at 70 per cent. For second and subsequent properties, the maximum loan amount will be capped at 65 per cent.
As per the new rules, expatriates can get a loan of up to 75 per cent of the property value for their first property (of less than Dh5 million), while for property worth over Dh5 million, it will be capped at 65 per cent and for second and subsequent property at 60 per cent.
These rules would streamline the relationships between banks, financing companies, real estate developers and end users, and make the processes more seamless, said RAK Properties in a statement.
It would further help end users by offering them ready-made financial planning tools by default, as they comply with the stipulated rules that are more relevant and in sync with the demands of the real estate market and take into account the rights of all stakeholders, it added.
Mohammad Sultan Al Qadi, managing director and CEO, said: “We anticipate that the new mortgage rules would go a long way in supporting the development of the real estate industry, fuelled by the current positive sentiment of the UAE real estate and in line with Ras Al Khaimah’s vision for growth.”
The UAE property sector has reached a stage of maturity that qualifies it not only to meet current challenges but also introduce innovations that will ensure solid foundations, he stated. - TradeArabia News Service