Mashreqbank and Damac sign mortgage MoU

Under this agreement, Mashreqbank will provide a Home Loan for Damac projects including Marina Terrace, The Waves Towers (A & B), Ocean Heights (Dubai Marina), and Lake Terrace (Jumeirah Lake Towers).

The MoU was signed by Steven Pinto, Senior Vice President and Head of Retail Banking Group, Mashreqbank and Peter Riddoch, CEO of Damac Properties.

"We are delighted with Mashreqbank's expression of confidence in the quality of Damac's projects and the underlying strength of the Dubai property market. This MoU extends the long standing association between our two organizations and will enable Damac to continue to offer high quality value-added service to our customers," said Peter Riddoch at the agreement signing ceremony yesterday (05/02/05).

"Mashreqbank is pleased to tie up with a dynamic developer such as Damac Properties, with a vast portfolio of off-plan properties appealing to a wide spectrum of investors and home purchasers. For our part, Mashreqbank provides the widest array of mortgage products in the market, offering unrivalled options and customer choices to help people realize their dreams of owning their own homes in Dubai," said Steven Pinto.

Under the arrangement, Mashreqbank will undertake credit assessment and approval for both residents and non-residents of Dubai on mortgage terms of up to 15 years. Existing Damac customers will be able to obtain finance for all remaining instalments due on their apartments. Mashreqbank will also provide an equity release facility, enabling customers, who already own Damac apartments - with full payments, to borrow on the original purchase price.

Damac customers will also have the facility to obtain a pre-approval from Mashreqbank for financing a property they wish to buy in principle, enabling them to quickly reach a purchase agreement once they have identified the specific apartment.

Mashreqbank offers an attractive loan and repayment structure which will enable purchasers to be relieved of paying both rent and loan repayments prior to delivery of the purchased apartments, collecting only the interest during the construction period.

Damac customers can obtain mortgage advice and assistance at all Damac offices through the dedicated Mashreqbank officers at Damac sales centres. Mashreqbank has also set up mortgage advice centres in many of its main branches in the UAE to service all mortgage customers.

Unique to the UAE, Mashreqbank is the only bank to offer personalised service for Home Loan customers whereby a representative visits the customer in their office or home with all the necessary documents, and more importantly, the knowledge and expertise on the mortgage purchase process.

"This agreement will give our customers greater convenience and also the peace of mind that their purchase is fully funded and backed by the financial strength of Mashreqbank, the largest private bank in the UAE," Peter Riddoch added.

Steven Pinto said "Since being the first bank to launch a mortgage product in the UAE, there has been a resounding success both for us and our customers. We have since expanded the range of products we offer to give customers unrivalled flexibility. Mashreqbank provides property owners with the greatest range of choice over the location, style and price-range of property they want to own."

Commenting on the property market as a whole, Pinto observed that since expatriates have been able to purchase freehold property in Dubai the construction and real estate markets have been booming at an accelerating rate. "Dubai's intrinsic economic and population growth can in itself sustain this rapid development for several more years. However we are finding an increasing number of non-residents and also looking to the Dubai property market as an extremely attractive investment, whether for re-letting or use as a holiday home or retirement. This demand will continue to fuel the market for many more years into the future."