Mortgage Updates 2021 UAE

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Mortgage Updates 2021 Compare4Benefit
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Mortgage Updates 2020

• When you are facing financial issues in your life
  or want to make a big purchase and you are facing
  difficulties  so that you can easily sort out big
  things so for the same mortgage will help you.
• Even now also due to COVID-19 there are huge
  losses in financial status of countries. People
  are facing many challenges in personal and
  business life.
• At this point in March 2020 ,Central bank of the
  UAE has made new initiatives to help those facing
  financial difficulties at this time.

• 
  Compare Best Mortgages in UAE

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New Initiatives Introduced in Mortgage Market

• Real estate fee in Abu Dhabi removed
•  Postpone Mortgage payment
• Fall in interest rates
• Reduction or zero Processing fee 
• Increase in loan-to-values

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Real Estate fee in Abu Dhabi removed
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Real Estate Fee in Abudhabi Removed

• Now buying in Abu Dhabi has become even more
  cheap.
•  There is reduction in the processing fee and
  waivers from the banks.
• The administration has announced that there will
  be no registration fees for 2020 when purchasing
  in capital.

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Postpone Mortgage payment
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Postpone Mortgage Payment

• All of us are facing difficulties in the present
  time, as such one of the key initiatives
  introduced by the CBUAE relates to mortgage
  payment holidays.
• In UAE there is temporary relief up to 6 months
  to the customers who are not able to make
  repayments of mortgage due to disease and it is
  requested by Central bank management.
• These postponed repayments can also be applied to
  new first time buyers.
• Persons who have mortgage and they are facing
  problems now a days during COVID-19 they can
  directly contact there banks for the same as the
  CBUAE has appealed to the banks for the same.

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Fall in interest rates
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Fall in interest rates

• Since the end of 2019 we have seen rate
  reductions from the US Federal Reserve (US
  Fed),and as the UAE is pegged to the US dollar,
  we have seen interest rates in the UAE come down
  too.
• Central bank of UAE has lowest interest rates at
  this time due to the reductions from the US Fed
  from last few months. As we know that mortgage
  things and interest rates  are most competitive
  as we always see in the mortgage market. But now
  it is available at a fixed rate of 2.07. These
  decrease in percentage or fixed percentage is
  really helpful and good opportunity for the
  people who really want to take mortgage.
• There is no commitment that these rates will
  remain constant for longer period.
• The persons who already have variable rates
  mortgage check out with your banks or loan
  issuers so that they can also give to this good
  fixed rate for the coming months so that you can
  get reductions in your repayments.

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Zero or reductions in Processing Fee
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Zero or reductions in Processing Fee

• As informed above that some initiative has been
  taken by Central bank of UAE, so it is the other
  initiative of rejecting the processing fee while
  applying for any mortgage. Some banks have made
  reduction or put fee waivers to cover upfront
  costs when purchasing a property.
• This initiative combined with the reduced down
  payment requirements help to make buying more
  affordable .
• If you are considering remortgage , it is worth
  noting that most banks will also allow fee
  rejections and reductions for remortgage as well
  as new mortgage.

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Increase in loan- to-values
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Increase in loan- to-values

• The CBUAE has allows banks in the UAE to increase
  the loan-to -values for the first time buyers by
  5 for both UAE nationals and foreigners which
  means now the foreigners are able to borrow up to
  80 of their property purchase price and UAE
  nationals up to 85. It has increase from 75 and
  80.
• By increase in LTV for buyers reduces the down
  payment required which is very biggest challenge
  but dont worry for the same now because the down
  payment required by foreigners is now 20 and 15
  for the UAE nationals.
• The difference of 5 is not the large amount but
  when we think of large amount it make huge
  difference.

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References

• https//www.compare4benefit.com/blog/best-mortgage
  -rates-in-uae-2018-money-clinic/
• https//www.compare4benefit.com/blog/mortgages-dub
  ai-complete-guide/