What does the UAE mortgage law say about expat borrowing limits?

Sasi wants to know how much he can borrow from the bank to buy a home. What does the UAE mortgage law say?

Sasi:

“I moved to Dubai recently and I would like to buy a studio.

I would like to go for a bank loan and wondering how much would the bank be willing to lend me.

Does it make any difference if the flat is not ready?

Response:

“The UAE Central Bank has issued new mortgage regulations,

for which it will make a difference whether you’re looking at property that is readymade or

property that is off-plan. Let’s say that you’re looking to buy a property

that is below five million Dirhams, and you’re looking at readymade property,

you will only be able to get a loan from the bank up to seventy five percent of the value of the property.

If you’re looking at a property that is off-plan, the bank will only give you a mortgage of fifty percent

of the value of the property.”

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