Two major international banks have decided to boost the property market in UAE by opening the liquidity tap.
HSBC declared that it will now offer 75 percent financing on completed villas, 70 percent on completed apartments and 50 percent on off-plan units. The applicants must earn a minimum of AED20,000 per month, irrespective of their nationality. The maximum loan term is five to 25 years, or until the borrower reaches the age of 65, which ever occurs first, and interest will start from 8.5 percent, on a variable rate.
Just 24 hours post the announcement of HSBC's ease in lending, rival Barclays announced that it would lend aggressively in UAE property market. Currently Barclays is lending 60 percent on villas and apartments in UAE and is not financing off-plan properties
Hopefully most of the banks will adopt similar policies by offering loans but at lower interest rates. This will certainly pull out Dubai from the current Credit Crises.
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