The governor of the Central Bank Gabriel Makhlouf:"The mortgage measures are essential in our mission to serve the public by maintaining the financial stability of the economy and households as a whole." Photograph: iStockThe Central Bank confirmed on Wednesday that is easing its mortgage rules, which will allow first-time buyers to borrow more based on their income and subsequent buyers to take on a loan with a lower deposit.
The changes will take effect from the start of January next year, following a broad review of lending restrictions that have been in place since 2015. The regulator said first-time buyers will be allowed to borrow up to four times their household income under the tweaks. However, it will continue to enforce a limit on most loans to second and subsequent home buyers at 3.5 times income.While the regulator had previously required most second and subsequent buyers to put down a 20 per cent deposit against a property to secure a loan, it has decided to reduce this to 10 per cent, in line with its current requirement for first-time buyers.