|Finance||Interest rate||Repayment period|
|Up to 85%||From 3.99% pa||Up to 25 years|
With Home Loans starting from 3.99% p.a.*, you could be spending less on the mortgage and more on your home
- Low interest rate from 3.99%* a year
- Salary starting from AED15,000 pm with no salary transfer required
- Finance up to 85%* of the property value
More great benefits*:
- Transfer your existing mortgage or apply for a new one
- No early settlement charges after the first 3 years*
- Payment period from 5-25 years or until the age of 70 (subject to life cover)
Applicable for Approved UAE properties only
Raise funds against your existing property to finance your major projects.
Save a significant amount of money with overpayments by reducing the overall amount of interest payable over the lifeof your loan. You can overpay with no redemption penalty subject to a minimum amount of AED25,000. Please note that overpayments can only be made on your usual repayment date. Please note that no re-draws are available.
Overpayments must not total more than 25% of the total outstanding loan amount in any particular year.
The EIBOR-mortage interest rate is three month EIBOR plus a fixed margin. The three-month EIBOR rate is reviewed on a quarterly basis.
You can get an HSBC Home Loan if:
- Aged 21 to 70 years (subject to life cover)
- Minimum salary of AED15,000 pm
- Salaried or Self Employed
- Customers residing outside the UAE applying for a mortgage will only be considered if they are Premier customers and meet the HSBC lending criteria
|3-Month EIBOR Based Rate
(Emirates Interbank Offered Rate)
|Base Rate for Completed Properties
Loan to Value (LTV) less than or equal to 60%
Loan to Value (LTV) over 60% and up to the maximum LTV applicable on your selected development
3 Month EIBOR + 3.1329% p.a.
3 Month EIBOR + 3.6329% p.a.
|The Eibor based rate is comprised of 3 month variable Eibor which is updated on a quarterly basis and a fixed margin that remains fixed for the life of the loan.|
|Equity Release Loan
Up to a maximum AED 5 million
|Additional 1.00% over and above the applicable Home Purchase rate||Equity Release loan is a loan available against your property only if there is sufficient value in the property as against any liabilities secured against the property. Please ask your Mortgage Advisor for details|
|3 Months EIBOR at 1st of October 2013 – 0.85714%||Note: The rates quoted in this section are exclusive of any additional amount related to your insurance cover.|
|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||0.04% p.a.||Property insurance fee is charged on the rebuild cost of the property. This can be arranged by HSBC and is to be reviewed annually by the borrower.|
Home Loan Arrangement Fees
|Personal Banking and Advance||1% of loan amount, Min. AED 5,000||Standalone fee payable at on the amount of the approved loan. To be paid at the time of approval.|
|Premier||0.5% of loan amount, Min. AED 5,000|
Home Loan Closure Fees
|Loan Closure Fee||AED 2,500||Administrative charge for the closure of the Home Loan account, and the release/return of relevant documentation.|
|Early Settlement charge||1% on the amount of loan outstanding||Unless stipulated otherwise in your home loan agreement/offer letter:
Please note this is in addition to the Loan Closure Fee above.
|Overpayment Fee:||No charge||Subject to a minimum overpayment amount of AED 25,000 on top of your usual monthly installment. Such additional payments can only be made on your usual monthly installment date.
Overpayments must not total more than 25% of the total outstanding loan amount in any particular year. No re–draws are available.
|Product Conversion Fee||AED 10,000||Charged when converting from a Standard Variable Rate mortgage to a 3 Month EIBOR Based mortgage|
|Non-standard statement production/copy of original documentation||AED 500||Charge per document|
|Home Loan liability letter||AED 1,000||Charge per letter|
|Late payment fee||Lending Rate set out in customer’s agreement||To be paid if a payment is more than 15 days past due date. Interest will be charged on all overdue payments at the lending rate set out in your agreement. This is in addition to the balance outstanding on your home loan, on which interest will continue to accrue on a daily basis.|
|Change of parties on mortgage offer letter||AED 500||Charged on re-issuance of offer due to change of names post drawdown|
|Loan rescheduling fee||AED 1,000||Charged when the term of the loan is rescheduled (i.e. where there is an increase/decrease in the term)|
|Property swaps administration fee||AED 2,500||To be paid when the property financed is being swapped to a different property offered by a Developer|
|Issuance of No Objection Certificate (NOC) for Consolidation of loans with the same Developer||AED 1,000||To be paid when the outstanding finance amounts from multiple properties is being applied towards a reduced number of financed properties.|
Property valuation fee
|Standard Valuation Fees||AED 2,500||Fee to be paid in the event a standard valuation is required. Please note that a valuation will need to be completed at the application stage for all completed properties and is non-refundable in the event the application does not progress.
The valuation will be carried out by an independent valuation company on HSBC’s panel.
In the event of a property swap a valuation of the new property will also be required.
|Snagging assessment fee||AED 1,000||A fee charged in addition to the standard valuation fee should a customer require snagging at the time of handover of the property.|
Whether you are 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.
Home loan repayments calculator
Determine your monthly loan repayments based on how much you need to borrow.
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.
Lump sum calculator
How much time and interest can I save by paying a lump sum off my loan?
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.
How Much Can I Borrow ?
Use this calculator to work out how much we may be prepared to lend you.
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 properties in 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 AED15,000 per month and above (or equivalent in other currencies), who wish to purchase a property from one of the selected developments for which HSBC is providing finance, subject to meeting HSBC's lending criteria.
What are the principal features of HSBC Home Loan?
EIBOR mortgage, is based on the three-month EIBOR, subject to quarterly review, and a fixed margin that remains fixed for the life of the loan
- Maximum term of 25 years (subject to repayment before the customer's 65th birthday)
- Finance amount of up to 85% of the purchase price or the professional valuation, whichever is lower
What are the advantages of HSBC Home Loan?
We offer competitive home loan rates with no financial penalties if you repay the loan in full before the end of the Repayment Period after the first 3 years (administrative charges will apply for loan closure).You can also overpay throughout the term of the home loan (subject to minimum overpayment requirements) see our Tariff Sheet for further details. A dedicated team of experienced mortgage advisers will assist you to arrange your home loan. Following your purchase further assistance is available by calling at 800 HOUSE.
How is interest for HSBC Home Loan calculated?
Interest is calculated on the daily balance outstanding on your home loan account. Your monthly installment will be applied against your outstanding balance, plus the interest accrued.
How do I apply for HSBC Home Loan?
To apply for an HSBC Home Loan you can Call toll–free 800 HOUSE, visit your nearest branch or the HSBC website.
You can discuss your needs with a member of the HSBC Home Loan team, who will conduct an initial fact-find interview to ensure that you have a full picture of what is required.
What happens if I sell the house before the home loan is paid off?
We will require you to repay the full outstanding balance of your home loan (principal plus interest) owing up to the time of sale. Please call toll free 800 HOUSE or visit a branch for further details.
Can I arrange my own insurance?
Yes. Customers can take life and property insurance arranged by HSBC or provide their own cover through an approved insurer and assign the benefit of the policy to HSBC. If a customer makes their own insurance arrangements there may be a cost involved in the assignment of the policies and the borrower must pay these costs. Life insurance and property insurance (for villas and townhouses) are both mandatory.
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 the relevant liability letter(s).
1. Are you planning to sell the property to a 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/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/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||AED2,500 Administrative charge for the closure of the Home Loan account, and the release/return of relevant documentation|
|Home Loan liability letter||AED1,000 (will be charged each time a revised letter is issued)|
|Early Settlement Charge||1% (unless stipulated otherwise in your home loan agreement/offer letter) on the amount of loan outstanding. The Early settlement charge is payable in the event of all scenarios above and will only be charged within the first 3 years of the Repayment Period.|
Process and requirements
- Once you let us know your closure scenario, we shall arrange to prepare your liability letter, which will give you the pay off amounts including charges, within 10 working days
- Additionally, a copy of the liability letter will also be prepared (applicable to scenario number 3 and 4 only) in order for you to forward the same to the other bank/company
- The liability letter needs to be signed by yourself, and the original copy must be returned to the bank in order for us to proceed with your closure. (The Bank will be unable to settle the outstanding mortgage if the signed liability letter redemption statement is not returned to the HSBC Home Finance Department)
Mode of payment
You can make funds available in your HSBC bank account and provide us with an authority to debit the account or you can transfer funds to the following account:
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 number
Alternatively you can send us a manager's cheque payabale to:
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), the documents will be released after seven working days
– If you close your mortgage by giving us a cheque (manager's cheque), the documents will be released after ten working days
What is the mortgage part-payment procedure?
You can make an overpayment at any time. This should be a minimum of AED25,000 on top of your usual monthly installment. We will not charge a fee for overpayments. Such additional payments can only be made on your usual monthly installment date.
Overpayments must not total more than 25% of the total outstanding loan amount in any particular year.
– If you wish to make an overpayment please notify us in writing
– Please note that you will not be able to redraw any overpayments made . We cannot normally reverse or cancel any overpayment instructions.
– You can choose to make the part payment by using your internet banking account or by signing a debit authority for us to facilitate the payment.
Please note that following the overpayment your monthly installment amount will remain the same; however the tenure of the loan will shorten.
– Existing Amanah mortgage customers looking to make overpayments will need to sign a letter in addition to the above.
– For any further queries, you can contact one of our mortgage advisors or call 800 HOUSE.