Amanah Home Finance
With profit rates as low as 5.49%* p.a., imagine what you could do with the money you save
| Finance | Profit rate | Payment period | Home contents Takaful | Reduced rate | |
|---|---|---|---|---|---|
| Up to 80% | Up to 25 years | Free for one year | From 5.49% p.a. |
Make the most of our latest offer*:
- Low profit rate from 5.49%* p.a.
- Salary starting from AED 15,000 with no salary transfer required
- Finance up to 80% of the property value
- Free home contents takaful for one year
More great benefits*:
- Transfer your existing home finance or apply for a new one
- No early settlement charges, except for 3% on buy-outs
- Payment period from 5 to 25 years or until the age of 70 (subject to life cover)
- Free HSBC Amanah Premier or HSBC Amanah Advance Current Account
Home improvements
If you've got plans for building a swimming pool or landscaping your garden, we have finance options for you.
Equity release
Raise funds against your existing property to finance other important areas of your life, like funding your children's education, buying a car or taking advantage of investment opportunities.
Overpayments
- Overpay with no redemption penalty - subject to a minimum of AED 25,000
- No re-draws available against overpayments in the future
Competitive profit rates
Choose our competitive rates which are reviewed every 6 months (on 1st January and 1st July of every year)
Please see the tariff sheet for more details.
You can get an HSBC Amanah Home Finance if:.
- You're a UAE National or an Expatriate
- You earn a minimum monthly salary of AED 15,000
Fees and Charges
| HSBC Amanah Home Finance Tariff Card (5th Jan – 30th Jun 2011) | ||
|---|---|---|
| Profit Rates* | ||
| Home Purchase: | ||
| Completed property: Town houses/villas: |
Home Purchase: FTVs and respective rates are applicable to completed property finance There is different FTV for each development. Please refer to the detailed FTV list or ask your Home Finance Advisor Total finance amount = Financing amount as per the original stage payment plan |
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| FTV (finance to value ratio): up to and including 60% | 5.49% p.a. 6 months EIBOR + 3.71% |
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| FTV (finance to value ratio): between 60-80% | 5.99% p.a. 6 months EIBOR + 4.21% |
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| Apartment: |
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| FTV (finance to value ratio): up to and including 60% | 5.49% p.a. 6 months EIBOR + 3.71% |
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| FTV (finance to value ratio): between 60-70% | 5.99% p.a. 6 months EIBOR + 4.21% |
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| Under Construction Property: Town houses/villas and apartments FTV up to and including 50%. Premier cutomer discount (up to and including 60% FTV) Advance cutomer discount (up to and including 60% FTV) Additional Rental for Under-construction** The rate is: i) For each year of property under construction ii) 1st year exempted iii) Calculated on prorata basis iv) Collected with the first rental payment **Please refer to the example at the end of second page for explanation about Additional Rental |
7.75% 6 months EIBOR + 5.97% 0.5% on the above 0.25% on the above 1% of the total financed amount (non-refundable) for each year under- construction |
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| Equity Release Finance: [Only on completed property] |
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| FTV: up to and including 50% for Town House / Villa FTV: up to and including 50% for apartments (Maximum amount of AED 1,000,000) |
Additional 1% over the above applicable FTV | Equity Release Financing (ERF): Additional financing up to an existing AHF customer, based on the increased value of the property under finance. Please note that a finance requested against self-owned property is not ERF. Such cases will be treated as Home Finance. A buy-out with ERF will be treated as a normal Home Finance and AHF rate will apply |
| * Profit rates are expressed as (EIBOR + Margin); 6 months EIBOR as at 2 July 2011 = 1.78% FTV - Finance-to-Value ratio |
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Protection
| Anticipated Buildings Insurance / Takaful cost | 0.05% (approx.) | Charged on the re-build value of the property, as specified in the valuation report. This will be taken as an annual payment as Supplemental Rental / Amount and is charged at actual/subject to change by Takaful/Insurance company |
| Life cover Takaful | Life Takaful Cover is mandatory and must be assigned to the bank. Please ask your Home Finance Advisor for more details |
Processing Fee
| Application Processing Fee (Fee is collected at the time of Approval- In-Principle) |
AED 2,500 | Charged for an Approval-In-Principle and to be paid upfront at the time of application. This amount can be adjusted later with the Processing Fee if the AIP is used within the validity period. If the bank rejects the application, then full amount will be refunded. The Approval-In-Principle will be valid for 30 days |
| Arrangement fee | 50% off | |
| Processing Fee - (Completed & Under-construction) (Fee is collected upfront at the time of issuing offer letter) |
Up to 1% of financing amount | Minimum fee of AED 5,000 |
Administrative
Valuation Fee
|
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 dose not progress. For under construction properties, valuation is done in two stages i.e. in under construction state and upon completion. Valuation is mandatory at both these stages | |||||||||||||||||||
| Delayed Payment Amount | AED 1,000 | Payable when the monthly rental is not paid within 15 days from due date. Any such fees will be paid to charity net of cost of collections | ||||||||||||||||||
| Partial payment of fixed rental (at any time during the lifetime of the financing, prior to the repayment date) |
No charge | Minimum partial payment allowed is AED 25,000. Such additional payments can only be applied on a monthly rent payment date after due notice has been given to HSBC MEFCO in writing | ||||||||||||||||||
| Termination of the Ijarah lease | AED 2,500 | At the time of the termination of lease agreement | ||||||||||||||||||
| Processing fee for early settlement | 3% of the finance amount outstanding | If the existing finance is transferred to another financer, 3% of the outstanding to be paid | ||||||||||||||||||
| Home Finance liability letter | AED 500 | |||||||||||||||||||
| Non-Standard Statement production | AED 500 | |||||||||||||||||||
| Providing copies of documents | AED 500 | |||||||||||||||||||
| Assignment of Buildings Takaful / Insurance | AED 500 | Payable if HSBC Buildings Insurance is not used | ||||||||||||||||||
| Change of Parties on the Offer | AED 500 | Charged on re-issuance of offer due to change of names | ||||||||||||||||||
| Consolidation via property swaps offered by Developer | AED 2,500 | To be paid when the property financed is being swapped before the handover with a different property offered by Developer | ||||||||||||||||||
| Issuance of NOC for Consolidation of liabilities with the same Developer | AED 1,000 | To be paid when the outstanding amount from various properties is being applied towards the financed property. | ||||||||||||||||||
Special Notes
| 1. | The FTVs are based on the 'Lower' of either the sale / purchase price as per sale & purchase agreement (SPA) or a valuation by approved valuer of HSBC MEFCO |
| 2. | For Under-construction properties the deferred profit payment option is not available; Variable Rental will be charged during under-construction period. Full rental will be charged after completion of construction |
| 3. | **Example for Additional Rental Payment (Under-construction only): Current date: July 2009 Purchase price AED 1,300,000 Required Finance AED 1,000,000 Example 1 Property completion date confirmed in SPA May 2010 No Additional Rental Example 2 Property completion date confirmed in SPA July 2011 1% Additional Rental to be charged AED 10,000 Example 3 Property completion date confirmed in SPA as July 2012 2% Additional Rental to be charged AED 20,000 |
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 home finance, 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.
How does HSBC Amanah Home Finance work?
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.
What makes HSBC Amanah Home Finance a Shariah compliant product?
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 (home finance). 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.
Can I make my HSBC Amanah Home Finance payments in a foreign currency?
Yes you can! However you will be responsible for any currency exchange rate fluctuations.
Do I have to have an HSBC bank account to apply for HSBC Amanah Home Finance?
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.
Who is eligible for Amanah Home Finance?
- 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.
What are the principal features of HSBC Amanah Home Finance?
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)
Is the Life Takaful Cover (life insurance) mandatory for all Amanah Home Finance?
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.
What are the advantages of HSBC Amanah Home Finance?
- 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.
How do I apply for HSBC Amanah Home Finance?
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.
Can I purchase the property prior to the completion of the lease period?
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.
How can I use the property that I have financed through HSBC Amanah Home Finance?
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.
How is rental on HSBC Amanah Home Finance calculated?
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.
Can I early settle my HSBC Amanah Home Finance?
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.
If you've been wanting to move into a place you can call yours, make the most of our latest offer.
