Mortgage Regulations Given New Sting

One thing that is being ensured by the Central Bank of the United Arab Emirates is that it does not want to allow any property bubble created again in the country and it has been taking every necessary step to insure it. The latest decision by the Central Bank also is another move to achieve this very goal. They have decided to regulate the mortgage financing in the state that will be implemented by the mid of this year.

It is in the final stages of development and before implementation all the major banks in the state will be asked to share their opinions and have their say about the meeting. The Emirates Banks Association long with the other individual banks will be listened to by the Central Bank and their suggestions for improving it will be taken as well.

The new regulations are being made because it will certainly draw a line and the regulation will bring uniformity in the decisions of the banks about it. Last year, some regulations were introduced in this regard by the central bank; however, the newer one will have a wider scope than the one given the previous year. Commercial banks have expressed their reservations as they believe that they were not consulted before bringing any such laws into legislation. They are of the view that such a cap will further hit the realty sector in the state and thus Central bank should review it.

However the experts at Bayut have expressed gratitude as they believe that so far the mortgage regulations were like a snake without a sting and new regulations will certainly have a good effect as it is much better to have some regulations as compared to no regulations.