Home loan insurance should be a priority

18/05/2009 – National – The introduction of mortgage insurance might serve to boost home lending and reinvigorate the construction sector throughout the UAE.
The global financial crisis is having a significant impact on the property sector in the UAE and the rest of the GCC. Even with proactive measures by the region’s policymakers, widespread uncertainty globally has made local lenders more risk averse, leading to a tightening of credit for housing finance and stricter requirements for home loan approvals.
Without a return to normal lending practices for home buyers, the strains in the property market and related sectors such as construction are destined to worsen. In this situation, one way to boost home lending could be the introduction of mortgage insurance.