Home Loans - Frequently Asked Questions

It provides the opportunity for customers, both national and expatriate, to borrow money for the purchase of selected residential developments in the Emirates of Abu Dhabi, Dubai and Ras Al Khaimah.

Yes, however you can apply without being a current HSBC customer and we will arrange an appropriate account for you if you are approved for a Home Loan.

Customers earning a salary of AED 20,000 and above (or equivalent in other currencies), who wish to purchase a property from one of the selected development site's for which HSBC is providing finance, subject to meeting HSBC's lending criteria. You can apply from anywhere in the world.

Please click here to view the Loan to Value Matrix (List of developments financed by HSBC)

The principle features are:

Variable rate of interest. This rate is subject to quarterly review.

3 Month EIBOR Based Rate. This rate will be based on the 3 month EIBOR and have fixed margins depending on the loan's LTV. This rate is subject to quarterly review.

Maximum Tenure period: a maximum term of 25 years (subject to repayment before 65th birthday). The maximum tenure may differ for individual developments, please check with us for confirmation.

Finance amount upto 60% of the purchase price or the professional valuation, whichever is lower.

We can arrange competitive Home Loan rates
As a major international bank we are also able to offer our clients a full range of financial services and products - i.e. budget accounts, money remittance services, Credit cards, Personal loans, Vehicle finance, Financial Planning services, Telephone and Internet Banking etc.

Interest is calculated on the daily balance outstanding on your Home Loan account. Your monthly instalment will be applied to your outstanding balance, plus the interest accrued.

Call toll-free 800 HOUSE.
You can discuss your needs with a member of the HSBC Home Loans team, who will conduct an initial fact find interview to ensure that you have a full picture of what is required.

We offer a Shariah compliant Home Finance facility through our Al Asaas product.

We will require you to repay the outstanding Home Loan amount and interest owing up to the time of sale. Please see "Flexi - Home Loan" for details.

Yes, Customers can take insurance for life and property cover arranged by HSBC, or provide their own cover through an approved insurer and assign it to HSBC. If a customer makes their own insurance arrangements there will be a cost involved in the assignment of the policies and the borrower must pay these costs (please click here for Fees and Charges). Building Insurance and Life insurance are both mandatory

Specialising in offshore banking and the provision of wealth management services to expatriates and international customers, HSBC Bank International Ltd is the Group's specialist provider of global financial services. Headquartered in Jersey, Channel Islands with offices presently in South Africa, Singapore, Hong Kong and Dubai, the Dubai Representative Office of HSBC Bank International Ltd currently arranges mortgages for UK properties. Their Dubai contact number is +9714 3948252 or you can email them at dubai.repoffice@hsbc.com

A Home Loan account of more than AED 5,000,000 will make Home Loan customer eligible for HSBC Premier service, subject to other qualification criteria.

Regarding the Completion / Final payment towards the Developer, we would like to inform you that our processing period for completion payment is 12-15 working days. Once we receive completion notice from the Developer, we arrange for completion valuation (cost is borne by the customer). Once the Valuation report is obtained, the payments will be effected within 5/7 working days.

We request you to have sufficient funds available in your current account, as the account will be converted from under construction loan account to completed home loan account (where you will start paying monthly installments), funds available for interest/profit outstanding, valuation fees, building insurance (only for villas).

We also need to make the registration at the Dubai Lands Department once the possession is provided by the Developer. Registration of the property is mandatory under the Dubai Lands Department Laws; hence it’s of utmost importance that the registration is done as soon as the Developer provides the possession.

If you are planning to close your mortgage account with us, we request you to let us know the appropriate scenario applicable. This information is required by us in order to issue you the relevant liability letter.

Scenarios

1. Are you planning to sell the property to cash buyer?   If so, please provide the name of the buyer.
2. Are you planning to sell the property to a buyer who is availing a mortgage with HSBC Bank Middle East? If so, please provide the name of the buyer.
3. Are you planning to sell the property to a buyer, who is availing his/her mortgage from another bank or finance company? If so, please provide the name of the bank /company.
4. Are you planning to transfer your mortgage from HSBC to another bank or finance company? If so, please provide the name of the bank /company.
5. Are you planning to pay off and close the mortgage with your own funds? If so, please specify the source of these funds.

Basic charges for per mortgage closure will be:

Process & Requirements

- Once you let us know your closure scenario, we shall arrange to prepare your Redemption Statement, which will give you the pay off amounts including charges, within 3 working days.
- Additionally a Liability letter will also be prepared (applicable in scenario number 3 and 4 only) in order for you to forward the same to the other bank / company.
- The Redemption Statement needs to be signed by yourself and returned to the Bank in original, in order for us to proceed with your closure. (Bank will be unable to settle the mortgage outstanding if the signed Redemption Statement is not returned back to HSBC Home Finance Dept.)

Mode of Payment

Required funds can be made available in your HSBC bank a/c

OR

Required funds can be sent to us via Telex transfer using the below details:

OR

Required funds can be sent to us a Manager's Cheque using the below details:

Cheque to be issued in the name of HSBC Bank Middle East Limited

Number Of Days to release your documents

- If you close your mortgage through cash (funds available in your HSBC account) then the documents will be released after 5/6 working days.
- If you close your mortgage by giving us a cheque (Manager's cheque) then the documents will be released after 7/8 working days.

- You can make a part / bulk payment other than your installment amount at any time, this should be a minimum of AED 25,000. (There are no charges)
- Please note that there will not be any re-draw facility available once you have made the part payment.
- You can choose to make the part payment by using the Internet Banking account or by signing a debit authority for us to facilitate the payment.
- For Amanah part payments, you will need to sign a letter, after receipt of which, the part payment will be made.
- For any further queries, you can contact your mortgage advisor or call '800-HOUSE'