Dubai’s Mortgage Market Heats Up

Posted on: March 30, 2005

Written by Select Property

HSBC has quietly added Jumeirah Beach Residence to its list of approved developments on which you can get a mortgage. The full list now includes The Palm, Jumeirah; The Palm, Jebel Ali; Jumeirah Islands; Jumeirah Village; Jumeirah Beach Residence; Garden View Villa”s; Marina Heights Towers; Falcon Tower; Flamingo Tower; The World; Lost City and Al Hamra Village in Ras Al Khaimah. The bank still doesn’t do any mortgages for Emaar developments.

Other banks which previously watched from the sidelines are entering the fray. National Bank of Dubai has just introduced Home Loans at an introductory rate of 5.99 percent. Watch this space for news of another joining their ranks in the coming months.

Meanwhile, Tamweel announced that they have loaned Dhs1.7 billion-worth of home finance in its first year of operation – a staggering amount, if you think about it. The Shari’a compliant lenders say they achieved a positive net profit in under 10 months of operation. As a matter of interest, 17 per cent of their clients are UAE nationals; 24 percent ‘other Arab’, 22 per cent European and 29 per cent ‘Asian’.

Amlak Finance says it has a new Dhs275.6 million financing fund for its customers. Amlak offers both variable rate and fixed rate mortgages.

Meanwhile, UAE mortgage house Tamweel is adding Tier B developers in Dubai to the list of projects for which it will provide mortgages. CEO Adel Al Shirawi said this will be done in a structured way so as to minimise any risk that comes with it.

Source: http://www.buydubaiproperty.com