Built to inform

Sign up for the daily newsletters

No, Thank you

Mortgage Finder lauds UAE Central Bank's 3% exit fee change

Property Finder-backed firm says cancellation of fee on early mortgage exits will benefit buyers

The UAE's Central Bank has amended mortgage legislation.
Pixabay
The UAE's Central Bank has amended mortgage legislation.

Mortgage Finder has commended the UAE Central Bank's announcement stating that banks can no longer charge a 3% early settlement fee for borrowers who want to exit their mortgage early.

Going forward, banks can only charge borrowers a 1% early settlement fee on an outstanding mortgage amount, Mortgage Finder said in a statement. 

The Central Bank said that in the future, banks may only charge borrowers a 1% early settlement fee on the outstanding mortgage amount or $2,722 (AED10,000), whichever is less.

The update from the Central Bank is also said to have indicated that anyone who has been made to pay the 3% settlement fee is eligible for a refund from their bank within 30 days.

Managing director of the Property Finder-backed firm, Chris Schutrups, said: “The news from the Central Bank is positive as it now opens up opportunities for those borrowers who were paying a higher rate of interest on their mortgage to find a better deal and save money.

“The recent interest rate cuts that we have seen are pushing banks to be more competitive with their products. We have seen a decrease in mortgage rates since the beginning of the year.

"All of this is great news for those borrowers who were stuck with mortgage products that did not reflect the changing market.”

Most popular

Awards

Construction industry conversations around digitisation must evolve
The Middle East construction industry’s approach to tech must evolve and focus on how can

Conferences

HKA on the underlying causes of Middle East construction disputes
EXCLUSIVE: Legal consultancy’s Jeffrey Badman discusses the changes required from stakeholders to reduce disputes
HKA: Volume of construction disputes to stay consistent in 2019
EXCLUSIVE: Consultancy’s Michael McSorley talks about methods to avoid and ‘speedily resolve’ construction disputes

Latest Issue

Construction Week - Issue 751
Oct 13, 2019