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Amanah Home Finance - FAQs
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What does HSBC Amanah Home Finance provide?It provides the opportunity for customers, both UAE, GCC nationals and expatriate, to obtain Islamic financing for the purchase of completed or under-construction freehold residential properties in selected developments in the Emirate of Abu Dhabi, Dubai.
Also, it will enable UAE and GCC Nationals to finance their purchase of a constructed house, or obtain financing against the value of their existing residential property in Dubai and Sharjah. HSBC Amanah Home Finance makes it all possible through Shariah compliant Ijarah financing.
If you already have a conventional interest based mortgage, this product also allows you to refinance your property in a Shariah compliant manner. Customer will be offered a discount on the processing fee of the finance and the facility to finance the exit fee of the existing financier/bank.
HSBC Amanah Home Finance is based on the Shariah compliant Ijarah finance facility.
You will identify the property you wish to purchase and agree upon a price with the seller. Following a professional valuation of your property and subject to Bank's agreement, the property will be purchased by the Bank and leased to you for a specified monthly rental payment and lease period as agreed under the Lease Agreement. During this period you will make monthly rental payments which mainly comprise 'Fixed' and 'Variable' rent. When the aggregate of the Fixed Rent payments made by you over time match the original purchase price, the Bank will transfer the title of the property to you. You will, however, be responsible for the cost incurred in the transfer of title from the bank to your name.
HSBC Amanah is the Islamic financial services division of the HSBC Group that comprises a team of Islamic finance professionals dedicated to meeting customer needs in accordance with guidelines of the Islamic Shariah. HSBC Amanah Home Finance has been developed in consultation with, and is approved by the HSBC Amanah Shariah Committee (ASC). A continuous review of operations through regular Shariah audits by the Shariah Committee ensures that all HSBC Amanah products, including Amanah Home Finance, are within the guidelines prescribed by the ASC.
HSBC Amanah Home Finance is based on the concept of 'Ijarah' whereby "one person transfers the right to use of a particular property to another person in exchange for a rent from the tenant". Under this concept you pay rent for the use of the property, instead of paying loan installment toward borrowed money from the Bank (mortgage). The Bank will purchase the property either from the seller, or yourself in the case of equity release, and then lease it to you over an agreed term.
Yes you can! However you will be responsible for any currency exchange rate fluctuations.
Yes, however you can apply without being a current HSBC customer and we will arrange an appropriate account for you once your application for the financing is approved You will have the option of a Shariah compliant bank account to meet your banking needs with minimum balance waiver.
UAE/GCC Nationals purchasing FREEHOLD properties in Abu Dhabi, Dubai and Sharjah from the developer directly or by way of resale, or purchasing completed Villas in Onshore areas in Dubai and Sharjah such as Umm Suqeim, Mamzer, El Yash or Darrari.
Expatriates purchasing FREEHOLD properties in Abu Dhabi, Dubai and Sharjah from the developer directly or by way of resale.
You can apply from anywhere in the world.
The principal features are:
Shariah approved financing based on Ijarah contract.
Rent under the Ijarah Agreement for HSBC Amanah Home Finance is calculated using a rate based on the six months EBOR (Emirates Inter bank Offer Rate) as a benchmark. This rent calculation rate, once agreed, will remain valid for a period for a six months and will be reviewed on the first working day of January and July each year.
Maximum lease period: A maximum term of up to 25 years. (Subject to repayment before 65th birthday).
You can apply on a single or joint basis.
Property age should be less than 10 years old.
Finance to Value Ratio (FTV) will depend on age, income, property etc., subject to the standard financing criteria.
Initial rentals (down payment) needs to be paid to the Bank before the Bank purchase the property from the Developer/Seller.
We will arrange for Building Takaful Cover (through a Shariah compliant Takaful)
Every customer avails Home Finance should obtain Life Takaful Cover for the full financed amount. HSBC Amanah can arrange for Life Takaful cover which is offered by leading providers of Shariah compliant insurance solutions. Also, the customer can obtain his/her own Life Takaful Cover and assign it to HSBC.
Shariah compliant home financing solution.
Competitive Ijarah rental calculation rate.
Pre-approved HSBC Amanah Credit Card.
HSBC STATUS or Premier priority banking services based on the value of your Home Finance.
Special package on HSBC Amanah Vehicle Finance from HSBC Middle East Finance Company.
As a major international bank we are also able to offer our clients other Shariah compliant financial services and products - i.e. accounts, money remittance services, Personal Finance, Vehicle finance, Financial Planning services, Telephone and Internet Banking etc.
To take advantage of a host of benefits from HSBC Amanah Home Finance, please call us today on 800-HOUSE (46873) to make an appointment with one of our Home Finance specialists or email us at mpc.dic@hsbc.com.
You can purchase the property (for yourself or to sell it to a third party) from us at anytime during the lease period by paying us the balance of the purchase price. This will be the original purchase price less aggregate of fixed rental paid till that time. You will also be required to pay to the Bank any additional costs that will allow the property to be transferred to you or in case you are selling the property to a third party or a nominee of your choice.
The property should be used only for residential purposes. For self occupation, second/holiday home. You may sublet/sublease the property after obtaining a written approval from the bank.
The HSBC Amanah Home Finance rent comprises three elements i.e. Fixed, Variable and Supplemental Rent.
The monthly HSBC Amanah Home Finance rental is calculated as an equal monthly installment that would allow the aggregate of the Fixed Rent paid by you to equal the purchase price of the property by the end of the lease period. This will allow the Bank to transfer the title of the property to you.
The Variable rent based on the Ijarah profit rate will be based on the 6 months EBOR rate and a margin, on a variable basis. Rates will be reviewed and re-set on the 1st working day of January and July each year and will remain unchanged for a 6 months period, until the next review date. The profit rate however cannot exceed 15%.
Supplemental rent comprises any costs anticipated by the Bank that are required for taking out buildings Takaful Cover (insurance) and maintaining the property or to recover any cost incurred by the Service Agent on the following rental payment date.
Yes you can. There will be minimal fee of AED 2,500 as stated in the applicable Tariff Sheet
Also, partial payments can be done provided your payments are over AED 25,000 and there will be no fee charged. Payments can be made on your installment due date each month. Your instructions must be received by us at least 5 working days before each installment date. There is no limit to the maximum payment value you can make. You may choose to reduce your monthly Rental payment or reduce the tenure.
