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Flexi-Home Loan Tariff Sheet

Interest rates

Home Purchase - variable rate
Base Rate for Completed Properties Premier Discount (Up to 60% of LTV) Status Discount (Up to 60% of LTV) (Maximum financing up to 75%) Base Rate for Under Construction Properties Premier Discount (Up to 50% of LTV) Status Discount (Up to 50% of LTV) (Maximum financing up to 50%)	6.75% 0.5% 0.25% 7.75% 0.5% 0.25%	The interest rates quoted are variable/ floating, charged on outstanding value of loan and subject to change in line with the mortgage agreement.
3-Month EIBOR Based Rate
Dependant on Loan to Value (LTV) ratio: Up to 55% 55.01% to 65% 65.01% to 75%	3 month EIBOR + 5.00% p.a. 3 month EIBOR + 5.50% p.a. 3 month EIBOR + 6.00% p.a.	The interest rates quoted are based on the 3 month EIBOR, charged on outstanding value of loan and subject to change in line with the mortgage agreement.
Equity Release loan	Additional 1.00% over and above the applicable Home Purchase rate.	Equity Release loans are applicable to completed properties only. Please ask your mortgage advisor for details.

Insurance

Life insurance is mandatory and it must be assigned to the Bank.	To be arranged by the customer	Life insurance must be assigned to the Bank
Property Insurance fee	0.075% p.a.	Property insurance fee is charged on the rebuild cost of the property. This can be arranged by HSBC in the first year of cover, to be reviewed annually by the borrower.
Assignment of Property Insurance fee	AED 500	Payable if HSBC Buildings Insurance is not used.

Account set-up fees

Arrangement fee:	1% of loan amount, Min. AED 5,000	Charged on the amount of the approved loan. To be paid at the time of approval.
Commitment fee: (applicable to under-construction properties only and payable at the time of loan application)	1%	A commitment fee, paid at the time of approval, is applicable to under-construction properties with delivery date being in excess of one year from the date of loan. The fee will be based on the property completion date at the time of application as listed in the developer's confirmation/documentation in the original sales/purchase agreement.

Account management fees

Early redemption fee:	No charge	No charge at any stage during the lifetime of the loan. Subject to a minimum amount of AED 25,000. Such additional payments can only be made on the monthly installment date.
Loan Closure fee - transfer to another Lender	2% on loan o/s Min.AED 10,000 Max.AED 50,000	If your existing loan is being transferred to another bank / finance company, fee is to be paid on outstanding loan amount.
Loan Closure fee - through own funds or upon maturity	AED 2,500	Administrative charge for the closure of the account, and the release/return of relevant documentation.

Other fees

Rate Conversion fee	AED 10,000	Charged when converting from a Variable rate to a three month EIBOR based rate or vice versa
Approval In Principle	AED 2,500	Non-refundable fee charged at the time of Approval In Principle issuance, to be adjusted in the arrangement fee charged at the time of final approval
Further Advance (arrangement) Fee - Equity Release	1% flat	Charged on the additional amount of the advance
Non-standard statement production/ Copy of documentation	AED 500
Home Loan Liability Letter	AED 500
Late Payment fee	AED 1,000	To be paid if a payment is more than 15 days past due date.
Change of Parties on Mortgage Offer Letter	AED 500	Charged on re-issuance of offer due to change of names.
Loan Rescheduling Fee	AED 1,000	Charged when loan is rescheduled (increase/decrease in term)

Property Valuation fee

Type of purchase / Financing	Under construction		Completed	To be paid at the application stage for completed properties. This is charged by the independent valuation companies on HSBC's panel and is non-refundable if the application does not progress. For under construction properties, valuation is done in two stages i.e. in under construction stage and upon completion. Valuation is mandatory at both these stages.
	Pre. comp-stage	Upon completion
From developer at O.P	AED 1,500	AED 2,500	AED 2,500
Re-sale	AED 1,500	AED 2,500	AED 2,500
Equity Release	n/a		AED 1,250

Consolidation fee

Consolidation via property swaps offered by developer	AED 2,500.00
NOC Issuance for consolidation of loans with the same developer	AED 1,000.00

Special notes:
(1) Your home will be at risk if you do not make payments on a home loan, or any other finance that may be secured against it.
(2) Effective from: 1st March 2010
(3) All fees are subject to change and will be applied to all customers from the date of change.
(4) Charges/fees pertaining to Lands Department or any other entity pertaining to registration/perfection of Mortgage are to be borne by the customer on actual basis and are not listed in this tariff sheet.