The CBUAE issues new instructions regarding the Sheikh Zayed Housing Programme

The CBUAE issues new instructions regarding the Sheikh Zayed Housing Programme

Abu Dhabi: The Central Bank of the UAE (CBUAE) has issued a notice to all banks and finance companies operating in the UAE on housing loans granted to beneficiaries of the Home Finance of the Sheikh Zayed Housing Programme (SZHP).

The notice included details of the CBUAE decision, in agreement with SZHP and in line with Article (5) of the Regulations Regarding Mortgage Loans, issued in 2013. According to the said decision, the debt burden ratio of the beneficiaries of the Home Finance Program of SZHP in monthly installments out of their total salary or any income from a known specific source has been increased from 50% to a maximum 60%. The decision also stated that UAE nationals, with long-term loans, shall be provided the flexibility to obtain housing loans of SZHP, after ascertaining their ability to pay within the DBR limit of 60%.

Banks are allowed to increase the DBR for retirees and senior UAE nationals from 30% to 50%, so that they can benefit from SZHP housing loans, after ascertaining their ability to repay, within the DBR limit of 50%, and after obtaining from them a no-objection statement to increase the monthly deductions against the housing loan.

Moreover, the SZHP housing