Just like every other country, the COVID-19 pandemic hit jobs and incomes of people in the UAE. Estimates by Oxford economists suggest the UAE could lose 900,000 jobs due to the COVID-19 pandemic. According to an October 2019 survey by recruitment firm Robert Half,[MK1], more than 50% of the UAE’s population was earning less than their regular income.

Let’s face it – with the rising inflation and cost of living, it’s not unusual to find oneself in a debt trap. Unforeseen circumstances like a salary cuts, job loss, delayed receivables, can make it even more challenging for borrowers to manage their big-ticket debts such as a Home Loan. According to a survey, three out of every five UAE residents are debt laden.

The unforeseen circumstance like the pandemic has made a treacherous impact on the financial planning. The drop-in income due to delayed receivables, reduced salaries, job losses, rental yield has created a cash crunch situation.

The Covid-19 pandemic has had a devastating impact on the economy, derailing many of our financial plans as well as the ability to pay home loans. The situation has become even more challenging due to drop in property values, rental yield, the salary cuts, loss of jobs, as well as income losses for the businesses. The long-term effect related to Mortgage Debt is beginning to be damaging.

When it comes to necessity, Mortgage Loans are an attractive option to purchase a dream home. But It’s not uncommon for a borrower to hit a roadblock in paying off the Mortgage Debt.

According to a survey, 47% of the UAE’s population is laden by Debt. One of the biggest contributors to individual debt is Home Loan. Most people equate rental expenses with the monthly loan payment and end up falling into a Mortgage Debt trap. But mortgaging comes with its own set of costs.

Unpaid Mortgages can be daunting. They will haunt you until you work out a solution. And in most cases, they may still follow you around in the form of damaged credit scores that creditors will use against you to deny you a new line of credit.

The economic activity has been stalled globally due to the unforeseen circumstances caused by the COVID-19 pandemic. The magnitude of such a devastating impact can easily derail the financial plans as well as the ability to pay-off mortgages. The situation has become grim due to the salary cuts, loss of jobs, as well as income losses for the businesses. The long-term effect related to Mortgage Debt is beginning to manifest on many people.

The COVID-19 pandemic has thrown us into another global financial crisis. Many people in the UAE have lost their jobs, have had pay cuts, or suffered immeasurable losses. Those who had taken out a mortgage were pushed into a highly precarious situation.