Dubai’s ruler Sheikh Mohammed Bin Rashid Al Maktoum
Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, has passed a decree waiving up to AED300,000 in mortgage repayments for borrowers that repay home loans ahead of their maturity date.
To avail of the waiver, homeowners with mortgages from the Mohammed bin Rashid Housing Establishment must repay the borrowed sum in one installment – minus the discounted amount - before its maturity, state news agency WAM reported.
The borrower must be able to prove the house has been completed and that they own it. The maximum discount is fixed at AED300,000.
The board of directors will revise the percentages in every three years or whenever there arises the need to amend them, the news agency said.
The decree annuls any provisions in existing laws that contradict with it.
The Mohammed bin Rashid Housing Establishment offers housing grants and loans and donates residential plots and buildings to Emiratis residing in Dubai
Oil-rich Abu Dhabi said last month it would allocate AED7bn ($$1.9bn) from its 2011 budget to be distributed to citizens in the form of housing loans.
The UAE has ringfenced budget funds for housing projects, home loans and infrastructure spend.