Abu Dhabi: Representatives of the UAE Bankers Association are negotiating with the UAE Central Bank various options for loans to deposit ratio on mortgages.
The Bankers Association members have proposed different criteria for completed buildings and projects in progress.
In addition, the bankers are proposing higher loan to value ratios for UAE national investors and expatriate investors.
“Because of this we had revised the ratio to be 80 per cent for Emiratis which is now almost approved by all concerned parties while the rift is on the expatriates with two suggestions — either 70 or 75 per cent for the first property — provided the house is already built,” said a banker.
Another banker said that the banks discussed the funding of the second property and any subsequent units whether built or still under construction.
“We have proposed also a ratio of 65 per cent for Emiratis and 60 per cent for expatriates for the second and subsequent properties provided that they are already constructed,” he pointed out.
Both the bankers said that there is also a third proposal with regard to the units under construction. It is expected that the central bank will reply to the proposals of the association before end of January.