“Central” directs banks not to finance real estate registration fees and brokers

The Central Bank directed banks working in the country by adhering to the percentage of real estate financing specified in the system issued by it, and stopping financing any additional fees or expenses, such as registration fees or brokers commissions.

Officials in the Real Estate Finance Department stated in a number of banks, who preferred not to publish their names, that the senior management in their banks informed them of the application of the “Central” instructions, as of yesterday, while others said that the application in the rest of the banks will start early next February.

They explained to «Emirates Today» that the periodic inspection operations carried out by the Central Bank showed that some banks enter 85% of the fees and commissions that the citizen customer bears within the total real estate financing amount, while 80% of them enter if the customer is a resident who is not a citizen , With regard to the loan granted to the first residence, as it is divided into the payment period, which may reach 25 years.

They added that the decision to stop financing fees and commissions will be applied to all banks and in all emirates of the state, as well as directing to return to the implementation of the permissible proportions of financing in the mortgage system issued by the “Central”, which ranged between 60 and 85% of the value of the property only, away from the fees Or the commissions, according to whether the customer is a resident or a citizen, and whether the funded property is the first or the second, while the borrower must bear the remaining percentage, which ranged between 15 and 40%.

They indicated that the fees and commissions ranged between 4 and 6% of the value of the property, and include registration fees from 2 to 4%, and the estimated brooms of 2%, noting that during the past years, the banks are accustomed to financing 80 or 85% of them, and for financing the real estate itself And the determination of the monthly installment accordingly, including these expenses, which necessitated the intervention of the central bank to restore adherence to what was stated in the text of the mortgage system, which allows a funding rate of 85% for the first housing if the customer is a citizen, and 80% if it is not a citizen, but for the house The second is the financing rate of 65% for the citizen, and 60% for non -citizen.

• 85 %of the fees and commissions borne by the citizen customer, inserted by some banks within the total financing amount.

• The “Central” demanded banks to adhere to the financing ratio established in the mortgage system.