With the Coronavirus outbreak, it’s not just the physical impact of the disease that people are worried about. There’s the massive financial and economic impact to worry about as well.
With social distancing having become the norm, we have already seen malls, retail stores, cinemas, dine-in restaurants and a bunch of other places being temporarily closed. That’s obviously going to affect the revenues of various businesses and the income of their employees.
Given this grim scenario, the UAE government and banks in the country are stepping up to ease the financial burden on residents. And among the long list of financial relief measures announced just a few days back, there’s a provision to make home finance more accessible for those looking to buy their first home in the UAE.
Down payment requirement slashed
Applicable only for first-time home buyers, the new measure lowers the mortgage down payment requirement for residents by 5 per cent. This effectively increases the Loan-To-Value (LTV) ratio for expat borrowers to 80 per cent, and that for UAE Nationals to 85 per cent.
Additionally, some banks like Emirates NBD, Mashreq and Commercial Bank of Dubai (CBD) are also waiving 100 per cent of their mortgage processing fees for first-time home buyers.
Which banks are included?
Following is the list of banks who have been confirmed to offer finance of up to 80 per cent of the property value.
- First Abu Dhabi Bank (FAB)
- Abu Dhabi Islamic Bank (ADIB)
- Abu Dhabi Commercial Bank (ADCB)
- Emirates NBD
- Commercial Bank of Dubai (CBD)
- Emirates Islamic
- Dubai Islamic Bank (DIB)
Note – This list may miss other banks who are yet to announce the relief measures they are taking. And although we will try our best to continuously update the list, it is best to check with your bank to confirm your eligibility for the offer.