{"id":900,"date":"2016-01-06T21:05:00","date_gmt":"2016-01-06T14:05:00","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-homeowners-feel-the-pinch-as-mortgages-rise-on-back-of-fed-rate-increase\/"},"modified":"2016-01-06T22:30:24","modified_gmt":"2016-01-06T15:30:24","slug":"uae-homeowners-feel-the-pinch-as-mortgages-rise-on-back-of-fed-rate-increase","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-homeowners-feel-the-pinch-as-mortgages-rise-on-back-of-fed-rate-increase\/","title":{"rendered":"UAE homeowners feel the pinch as mortgages rise on back of Fed rate increase"},"content":{"rendered":"


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\nUAE homeowners have been hit by new year mortgage rate increases as banks pass on rising interbank-borrowing costs. HSBC Middle East raised its mortgage rate based on its Emirates Interbank Offered Rate (Eibor) by just under a quarter per cent from the start of the month. A spokeswoman confirmed that its variable rates had increased at the beginning of January in line with Eibor. It comes hard on the heels of the first rate increase by the US Federal Reserve in almost a decade and an 11 per cent rise in interbank borrowing costs over the past month.
\nOther home lenders including Standard Chartered said they had raised repayments or were expecting to follow suit as rates start to tick up again for the first time in more than five years. That will be unwelcome to residents who are already feeling the pinch from higher consumer prices in the past two years. \u201cIt will be big for someone who has literally taken a mortgage that\u2019s just right for his income level and can\u2019t afford any more, not so big for someone who has millions in the bank,\u201d said Ambareen Musa, the chief executive and founder of Souqalmal.ae, a price comparison website.
\n\u201cThe mortgage market is not massive but it will have an effect on property owners, typically who have taken a variable mortgage quite a few years ago where the initial fixed rate period has finished. It will affect them 100 per cent.\u201d Tightening liquidity in the banking sector has also placed upwards pressure on interest rates. Most mortgages in the country are benchmarked to Eibor and homeowners have benefited from years of declining mortgages costs.
\nA bank will typically add 3 to 5 percentage points to Eibor to come up with the rate it offers customers. As result, most mortgages range between 4 and 7 per cent. The rise in home loan rates will come as a blow to the property sector, which has been hit hard by the strong US dollar that has deterred investment from the euro zone and elsewhere. The number of property sales in some parts of Dubai has fallen by more than 45 per cent since the most recent peak in 2013, the real estate information service Reidin said. The company said that it had also noted an increase in the number of properties purchased with mortgages \u2013 a method of buying usually associated with owner-occupiers rather than landlords.
\nmkassem@thenational.aescronin@thenational.aeFollow The National\u2019s Business section on Twitter
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\nSource : thenational.ae
\nRead more…UAE homeowners feel the pinch as mortgages rise on back of Fed rate increase<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

UAE homeowners have been hit by new year mortgage rate increases as banks pass...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-900","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-ew","jetpack-related-posts":[{"id":868,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uae-homeowners-hit-by-mortgage-rate-hikes\/","url_meta":{"origin":900,"position":0},"title":"UAE homeowners hit by mortgage rate hikes","date":"January 6, 2016","format":false,"excerpt":"\r \r UAE homeowners have been hit by new year mortgage rate hikes as banks pass on rising interbank borrowing costs.HSBC Middle East raised its mortgage rate based on its Emirates Interbank Offered Rate (Eibor) by just under a quarter per cent from the start of the month.It comes hard\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":426,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/further-pain-for-uae-homeowners-with-mortgage-rate-rises-in-store\/","url_meta":{"origin":900,"position":1},"title":"Further pain for UAE homeowners with mortgage rate rises in store","date":"December 21, 2015","format":false,"excerpt":"\r \r Home financers are set to come under pressure to raise mortgage costs for the first time since the financial crisis as interbank borrowing rates spike.It follows the first rate rise by the US Federal Reserve in almost a decade, and a 17 per cent jump in UAE interbank\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":39637,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dip-in-uae-interbank-rate-could-ease-mortgage-payments\/","url_meta":{"origin":900,"position":2},"title":"Dip in UAE interbank rate could ease mortgage payments","date":"January 5, 2017","format":false,"excerpt":"\r Homeowners in the UAE may see some relief in their monthly payments if a recent slide in the interbank rate - used as a benchmark for most mortgages in the country - continues.The 4.4 per cent drop in the benchmark three-month Emirates Interbank Offered Rate (Eibor) to 1.38 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":171200,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/potential-rate-cut-pause-geopolitical-tensions-may-cloud-hong-kong-property-recovery\/","url_meta":{"origin":900,"position":3},"title":"Potential rate cut pause, geopolitical tensions may cloud Hong Kong property recovery","date":"March 23, 2026","format":false,"excerpt":"\r Hongkonger Katie Chan was hoping to buy a flat to live in, and although the 37-year-old accountant was in no rush, the potential longer pause in interest rate cuts could delay her decision. 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More than 95\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":63988,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hong-kong-banks-offer-this-years-lowest-mortgage-rates-for-two-projects-in-tsuen-wan\/","url_meta":{"origin":900,"position":5},"title":"Hong Kong banks offer this year\u2019s lowest mortgage rates for two projects in Tsuen Wan","date":"August 17, 2017","format":false,"excerpt":"\r Competition in the mortgage loan business among banks in Hong Kong is heating up, with some partnering with mortgage brokers to offer this year\u2019s lowest mortgage rate to buyers of two new developments in Tsuen Wan. 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