Dubai mortgate rates go…. up?

The rest of the world is lowering mortgage rates. Dubai based banks are raising theirs.

I’m not very happy with this and nor are various colleagues of mine, but there’s nothing we can do.

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5 Responses to “Dubai mortgate rates go…. up?”

  1. Crispi Says:

    And What Rate would that be?
    Aussie rates (Central bank rate) = 4.25%. Typical mortgage rates = 7%.

  2. Chris S Says:

    Mine’s up from 7% to 8%, but other people have had 2% increases to between 8-9%…

  3. Sam Says:

    Mine is down to 4.0% and sliding (Canada)! but Dubai banks’ policy of increasing mortgage rates, to me, is counterproductive especially at this stage. With the global financial crisis, they should be encouraging mortgage lending unless there is a liquidity issue and/or the risk of defaulting on mortgages is high which I think is the main reason (if property prices drop significantly which I think is what the banks believe will be the case and this is a world wide phenomenon by the way, the result will be a negative equity for property owners and then the defaulting will start). The risk is compounded by the fact that the vast majority of the mortgage borrowers in the UAE are expats!

  4. Sam Says:

    Mine is down to 4.0% and sliding (Canada)! but Dubai banks’ policy of increasing mortgage rates, to me, is counterproductive especially at this stage. With the global financial crisis, they should be encouraging mortgage lending unless there is a liquidity issue and/or the risk of defaulting on mortgages is high which I think is the main reason (if property prices drop significantly which I think is what the banks believe will be the case and this is a world wide phenomenon by the way, the result will be a negative equity for property owners and then the defaulting will start). The risk is compounded by the fact that the vast majority of the mortgage borrowers in the UAE are expats!

  5. Seabee Says:

    All rates are up here, the rates they charge and the interest rates they pay. Various other countries are putting both down. Only a few weeks ago it was the other way round, mortgage rates charged and interest paid was much lower here than elsewhere.
    It’s normal – although the media keeps talking about an interlinked world the reality is that countries always do have different rates from each other.

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