Home Loan
With rates as low as 5.49%* p.a.,
imagine what you could do with the money you save.
| Finance | Interest Rate | Repayment Period | Home Contents Cover | 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 interest 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 cover for one year
More great benefits*:
- Transfer your existing mortgage 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)
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
Save a significant amount of money with overpayments, by reducing the interest on your loan. You can overpay with no redemption penalty subject to a minimum amount of AED 25,000. Please note these can only be made on your usual repayment date. Once you make an overpayment, there will be no re-draws available against it in the future.
Competitive rates
Choose between the Emirates Interbank Offered Rate (EIBOR) or a variable rate. The EIBOR-based rate will be benchmarked to three months' EIBOR plus a fixed margin. A rate review takes place every quarter, which is automatically re-set in line with the current 3 month EIBOR rate.
The three-month EIBOR as of 2 July 2011 is 1.57625%.
You can get an HSBC Premier Home Loan if:
- You're a UAE National or Expat
- No Salary transfer required
- Minimum salary of AED 15,000
Interest rates
| Home Purchase - variable rate | ||
|---|---|---|
| Reduced Rate Loan To Value (LTV) less than or equal to 60% Loan To Value (LTV) 60% - 80% Base Rate for Under Construction Properties Premier Discount (Up to 50% of LTV) Advance Discount (Up to 50% of LTV) (Maximum financing up to 50%) |
5.49* 5.99* 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 (Emirates Interbank Offered Rate) |
||
| Reduced Rate for Completed Properties Loan to Value (LTV) less than or equal to 60% Loan to Value (LTV) 60% - 80% Base Rate for Under Construction Properties Premier Discount (Up to 50% of LTV) Advance Discount (Up to 50% of LTV) (Maximum financing up to 50%) |
3 months EIBOR + 4.01% p.a. 3 months EIBOR + 4.51% p.a. 3 months EIBOR + 6.27% p.a. 0.5% 0.25% |
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 Premier discount available to UAE Wealth based relationships & salaried relationships for 3 months or more only. 3 months EIBOR at 1 October 2011 - 1.48% |
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 | 0.05% 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 | 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. |
| Arrangement fee | 75% off | |
| 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 | 3% on loan outstanding Min.AED 10,000 | 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. |
| 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) |
Consolidation fee
| Consolidation via property swaps offered by developer | AED 2,500.00 | To be paid when the property financed is being swapped before the handover with a different property offered by Developer |
| NOC Issuance for consolidation of loans with the same developer | AED 1,000.00 | To be paid when the outstanding amount from various properties is being applied towards the financed property. |
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. For Property Swap cases, the mandatory valuation has to be done for the unit which is being acquired. |
||
| 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 | |||
| O.P - Original Price | |||||
Mortgage Calculators
Whether you're in the market for a new home or want all the details about a home loan - you need facts and figures. The HSBC loan calculator range features calculators that are simple to fill in and give you quick answers.
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Home Loan Repayments Calculator
Determine your monthly loan repayments based on how much you need to borrow.
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Loan Comparison Calculator
The 'Compare HSBC mortgages' calculator has been designed to suit your busy lifestyle. In order to help
you narrow down your mortgage research you can quickly view a selection of current HSBC mortgages.
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Lump Sum Calculator
How much time and interest can I save by paying a lump sum off my loan?
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Overpayment Calculator
The overpayments calculator is intended to provide a general overview of the time and interest
that may be saved if you make additional extra repayments.
What does the HSBC Home Loan provide?
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.
Do I have to have an HSBC bank account to apply for an HSBC Home Loan?
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.
Who is eligible?
Customers earning a salary of AED 15,000 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.
Does the HSBC Home Loan apply to any property?
Please click here to view the Loan to Value Matrix (List of developments financed by HSBC).
What are the principle features of HSBC Home Loan?
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.
What are the advantages of HSBC Home Loan?
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.
How is interest for HSBC Home Loan calculated?
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.
How do I apply for HSBC Home Loan?
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.
Is the product Shariah compliant?
We offer a Shariah compliant Home Finance facility through our Al Asaas product.
What happens if I sell the house before the Home Loan is paid off?
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.
Can I arrange my own insurance?
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. Building Insurance and Life insurance are both mandatory.
Can I apply for an HSBC Home Loan elsewhere?
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.
Does a Home Loan account qualify a customer for HSBC Premier service?
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.
What is the Completion Payment Procedure?
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.
What is the Mortgage Closure Procedure?
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:
| Mortgage Closure Fee | AED 2,500.00 |
| Mortgage Liability Letter/Redemption letter | AED 500.00 (will be charged each time a revised letter is issued) |
| Mortgage Transfer fee | 3% of the loan outstanding (Charged only incase of scenario number 4 ) |
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:
Bank Name: HSBC Bank Middle East Limited
Account Name: HFO NSC TRANSITORY SUS ACCT
Account Number: 075-910687-001
SWIFT CODE: BBME AEAD
Reference: Name of HSBC customer and HSBC Reference No.
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
What is the Mortgage Part Payment Procedure?
- 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'
If you've been wanting to move into a place you can call yours, make the most of our latest offer.
