Media drew attention to the fact that clients with mortgage contracts with banks containing the condition "minimum profit" do not benefit from the reduction in the key interest rate set by the Central Bank after each Federal Reserve decision, due to the dirham's peg to the dollar. Experts in mortgage financing explained that part of the mortgage financing, especially older contracts, contains this condition established by banks to prevent the profit level from falling below a certain level, added to the "Eibor" rate (the interest rate for transactions between banks in the emirates), when the key interest rate was low, about 0.5%. On the other hand, financing that does not contain this condition in contracts leads to a reduction in the monthly payment with each decrease in interest rates on the same amount, and the updating will take place automatically by the bank in accordance with the adopted policy monthly, quarterly or semi-annually, without client interference. Mortgage financing expert Akhmed Arafat pointed out that mortgage financing is linked to the "Eibor" rate going up and down, which is determined in accordance with the key interest rate set by the central bank, depending on the decisions of the Federal Reserve, due to the dirham's peg to the dollar. Sheikha Ali, a financial expert, noted that most banks set a minimum profit level for mortgage financing that cannot be lower than a specified percentage, added to the "Eibor" rate to cover operational expenses and ensure reasonable profit. At the time, the key interest rate remained close to 1%, while the interest rate on mortgage financing did not drop below 3.5%. With the return to reduction, it is expected that the cost of the monthly payment will decrease to the same amount, for which the "Eibor" will decrease, and this will be reflected on the client's statement at the first update of "Eibor" in the bank systems with the adopted policy. According to Sheikha Ali, clients do not need to contact the banks with which they interact, as the reduction occurs automatically, as long as the contract does not contain the "minimum profit" condition, which does not allow the client to take advantage of the reduction in the key interest rate, even if it decreases below the specified rate in the agreement.
