Sorouh extends reach of cheap mortgages


  • English
  • Arabic

Sorouh Real Estate

will now begin offering 4.99 per cent mortgages (with loan-to-value financing up to 80 per cent) to all buyers in the Sun Tower on Reem Island. If these buyers can switch their existing mortgages to

Union National Bank

, there's a lot of money to be saved.

In fact, this brings up the possibility that there could be a rash of refinancing moves across Abu Dhabi (and eventually the rest of the UAE), as new lenders scour the market for reliable borrowers. Sorouh

.

In Abu Dhabi, there's a lot of focus on mortgages right now as the Government tries to stimulate the stagnant property sector.

Abu Dhabi Finance

, which is more than half controlled by Mubadala Development (the strategic investment arm of Abu Dhabi),

.

Meanwhile, the prevailing mortgage rate among lenders is about 8 per cent or more...

Here's the release.