Granted Land Mortgage
Get your dream home with HSBC Granted Land Mortgage for UAE nationals.
Your home, the way you always dreamt it.
| Loan to Value | Interest rate |
Repayment Period | Home and contents cover |
|---|---|---|---|
| Up to 75% | From 8% p.a.1
|
Up to 25 years | Competitive pricing |
As a UAE National, you can now build the home of your dreams as big as you dreamt it, because HSBC offers mortgages to help make your dream home come true. The mortgage comes with the following benefits for land granted to you by the government:
Here's how we can help you build your home:
- Finance amounts of up to AED4 Million
- Low interest rates starting from 8% p.a.1
- No early settlement fees2
- Finance up to 75% of the total construction cost and repayment period of up to 25 years
- Free current account from a world-class bank
- Valid Emirates ID required
- You're a UAE National aged 21 years and above
- Have been granted land by the Government of Abu Dhabi and Dubai 3
- Minimum income of AED20,000
- Additional finance available to UAE Nationals (in Dubai only) who have already taken a loan from the Mohammed Bin Rashid Housing Establishment 3
| Interest Rates - Variable Rate | ||
|---|---|---|
| Base Rate for Granted Land Finance *Premier Discount (Up to 60% of LTV) Advance Discount (Up to 60% of LTV) (Maximum financing up to 75%) |
8.5% 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. |
| 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 |
0.05% 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 | AED500 | Payable if HSBC Buildings Insurance is not used. |
| Account Set-up Fees | ||
|---|---|---|
| Arrangement Fee Premier Discount Advance Discount |
1% of loan amount, Min. AED5,000 75% off 50% off |
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 1 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. |
| Assignment of Property Insurance fee | AED500 | Payable if HSBC Buildings Insurance is not used. |
| 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 AED25,000. Such additional payments can only be made on the monthly installment date. |
| Loan Closure Fee - transfer to another Lender | 3% on loan outstanding Min. AED10,000 Max. AED50,000 |
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 | AED2,500 | Administrative charge for the closure of the account, and the release/return of relevant documentation. |
| Other Fees | ||
|---|---|---|
| Approval In Principle |
AED2,500 | 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 | AED500 | |
| Home Loan Liability Letter | AED500 | |
| Late Payment Fee | AED1,000 | To be paid if a payment is more than 15 days past due date. |
| Change of Parties on Mortgage Offer Letter | AED500 | Charged on re-issuance of offer due to change of names. |
| Loan Rescheduling Fee | AED1,000 | Charged when loan is rescheduled (increase/decrease in Term). |
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: October 1st 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.
5) All Fee paid to the bank are non refundable.