End users drive Dubai property market in 2021 as mortgage lending hits record Dh127.82 billion

Developers also played their part in enticing buyers to take out mortgages last year. “Reduced down payment requirements for first-time buyers – coupled with the general low rate environment – ​​have made buying much more feasible,” said Mohamed Kaswani, managing director of Mortgage Finder. “With fixed rates available from as low as 1.99% and a key rate at just 2.39% – compared to 2019 when the main product rate was 3.75% – buyers were able to take advantage excellent mortgage offers to access the housing ladder.

In 2020, the UAE Central Bank reduced the down payment requirement for first-time buyers in the UAE by 5%, increasing it to 20% for non-UAE nationals and 15% for non-UAE nationals. nationals. The change in loan-to-value ratios “has made a real difference for some first-time buyers”, with 83% of its mortgage transactions between the first and third quarters going to first-time buyers.

Additionally, December provided trends that showed homeowners making strategic decisions ahead of the expected rise in mortgage rates from March (if the US Federal Reserve decides to raise rates and the UAE regulator follows suit). not).

December was generally a “quieter” month in the mortgage industry. Still, there were 1,178 mortgage loan registrations last month, worth 10.08 billion dirhams.

Penny D. Jackson