UAE Central Bank eases borrowing norms, expands debt-ratio eligibility for Sheikh Zayed Housing Programme

This means UAE nationals availing of the funding will be able to get additional finance provided they are able to repay it.

Debt-burden ratio (DBR) is the ratio of an individual’s total monthly outgoing payments (including installments towards loans and credit cards) to the total income. This number is used by banks to calculate eligibility for loans and credit cards.

Banks are allowed to increase the DBR for retirees and senior UAE nationals from 30 per cent to 50 per cent after ascertaining their ability to repay.

Moreover, the SZHP housing loan borrowers’ contribution of 15 per cent in the down payment for the housing loans that their profit/interest is guaranteed and paid by the federal government, has been cancelled, subject to the following conditions: The property to be constructed/purchased through financing is the first house for the UAE national and to be used for his personal residence.

Should the amount of the loan exceeded the amount of loan profit/interest guaranteed and paid by the federal government, the UAE national shall be required to pay, from his own resources and not from other lending sources, the difference in the payable ratio of the down payment of 15 per cent required by the regulations.

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