Banks will no longer be able to charge 3% early settlement fee from the borrowers who wants to exit from the current Mortgage. This is under the new directive from the Central Bank, UAE.
Instead the fees has been reduced to just 1% on the outstanding mortgage amount or they can pay AED 10,000 – whichever is less.
And those who have already paid the exit charge of 3% will be refund to them within 30 days from their corresponding bank.
Circular has been sent out from the authority of UAE Central bank said, “Early settlement or partial settlement fee for applying to home loans has been reverted to maximum one per cent of the outstanding balance or AED10, 000, whichever is less. Banks and finance companies that arbitrarily changed the stated terms of the fees in existing customer agreements are required to respect the original terms of the agreement and refund all overcharges for all customers based on their original fee within 30 days of this notice.” This will be a great boost for borrowers, particularly in the current economic climate. Mortgage Consultants in Abu Dhabi is believing that, this will encourage borrowers to switch their current Mortgages to new lenders those who are offering less interest rate. This will results in an increase in remortgages activity and also buyout.
The great news from Central bank, UAE is positive and as it now open new offers to the borrowers those who are paying high interest rate to find a better mortgage and save money.
The recent interest rates will push the banks to be more competitive with their products in UAE Market. We have seen a decrease on the Mortgage rates since the beginning of the year. All of these will be a great news for the people who were stuck on the Mortgage products.
In 2018, the Central Bank of UAE announced that, the lenders could charge up to 3% of the outstanding home loans amount on clients those are exit the mortgages early.
So, don’t be late. This is the best time to invest in UAE & time to switch to refinance. If you are looking for best Mortgage advices, Contact theMortgage brokers in Abu Dhabi. The team of specialist will guide you to get the best Mortgages in UAE and also the best Mortgage products that are available in the market.