Fixed Rate Home Loan | HSBC UAE
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HSBC Home Loan

Introducing HSBC Fixed Interest Rate Home Loans

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Buying a home comes with a long to do list, from moving in, to getting the right furniture and the perfect garden. HSBC's Fixed Interest Rate Home Loans gives you one less thing to worry about for up to 5 years.

You can now fix your Instalments for a period of 2 years (24 months), 3 years (36 months) or 5 years (60 months)1. Besides, take advantage of our range of benefits:

  • Fixed Interest Rate is available for 2, 3 and 5 years1
  • No salary transfer required
  • Approval in Principle (AIP) provided in 60 minutes2
  • Eligible for a Premier Account if home loan is AED 3M or more3

How does it work:

Please refer to the below example which is designed to give you an indication and maybe used as a guide only

If you choose the 24-month Fixed Interest Rate Home Loan and your interest rate is fixed at 4.2%, then your Instalments will remain constant for that 24 month period1.

Loan amount (AED) Fixed Rate Fixed Period Monthly Instalment
1,000,000 4.2% 24 months AED 5,389


In the 25th month, the interest rate will change and will be calculated by adding an HSBC Margin to the prevailing 3M AED EIBOR rate applicable during that period.

Remaining amount (AED) HSBC Margin 3M AED EIBOR Total interest rate Monthly Instalment
951,424 2.75% 2.5% 5.25% AED 5,953

Home Loan
Comparison Calculator

Use the calculator below to compare your payments between a variable rate and a fixed interest rate home loan.

1

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Are you a UAE National or Expat?

What's the purpose of the home loan?

How many home loans do you have in UAE?

2

Financial requirements

Property Value

AED
The maximum loan amount as per UAE Central Bank regulation is

Down Payment

AED

Total Tenor in Years 1

10

1

25

Compare Mortgages

Monthly Repayments
Monthly Repayments
Monthly Repayments
Monthly Repayments
Monthly Repayments
Monthly Repayments
Monthly Repayments
Monthly Repayments
Initial Interest Rate
Variable period interest rate
Indicative monthly payments during variable interest rate period 3
Total interest over loan term 2
Total principal over loan term 4
Total repayments over loan term 4
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1 Max loan tenor allowed - 300 months. The max total tenor is also subject to the customers age at maturity of loan and is determined as per regulatory norms

2 Calculated on the basis of the initial interest rate.

3 Calculated on the basis of all monthly payments being made on time, and the initial interest rate remaining the same for the loan term

  • The calculator does not provide a home loan quotation and it is for illustrative purposes only. A full quotation will be provided when you apply and amounts may vary. This calculator is designed to give you an indication and should be used as a guide only.
  • The comparison provided is for UAE resident customers who would qualify as HSBC Premier and Advance customers.
  • The comparison provided is only valid for new home purchases, Balance transfers and Last Stage Payment Finance. It is not applicable for Top Ups or Equity releases.

FAQs 

What is the Fixed Rate Home Loan product? 

This is a Home Loan product where the interest rate and therefore the monthly payments remain fixed for a period you have chosen.

After the fixed period is over, the interest rate will vary and will be calculated by adding the prevailing 3 Month AED EIBOR rate and the HSBC Margin.

For example, if the fixed period is for 24 months, then the interest rate will be fixed at 4.2%. From the 25th month onwards, the interest rate will be calculated as the 3 Month AED EIBOR + 2.75% Margin.

How long does the fixed interest rate period last for? 

We currently offer fixed periods of 24, 36 and 60 months.

How is the Fixed Rate Home Loan product different from the 3 Month AED EIBOR product?  

The main difference is the interest rate. The interest rate for the EIBOR Based Home Loan tracks the 3 Month AED EIBOR rate and is therefore subject to change quarterly. The Fixed Rate Home Loan has an interest rate that remains fixed during the fixed period selected (24, 36, 60 months). After this, the interest rate will track the 3 month AED EIBOR rate and is therefore subject to change quarterly.

There are other differences between these products and you should ensure that you understand these when choosing which product is most suitable for you.

What is the HSBC Margin? 

The HSBC Margin is stated in the HSBC Home Loan offer letter. This will remain fixed and apply during the variable period.

Are there any additional fees related to the Fixed Rate Home loan product? 

Yes. Please refer to our Schedule of Services and Tariffs for the most up to date information on any applicable fees. In addition to the usual home loan fees, the following may also apply:

- Early Repayment Fee: applicable on any amounts that are repaid during the Fixed Interest Rate Period (full settlement or overpayment).
- Overpayment fee: applicable on any amounts that overpaid. The fee charged will depend on whether you pay this during the fixed period or the variable period.

If you would like to discuss an early settlement or overpayment, then please do contact us on 800-HOUSE (46873).

How will I know when the fixed interest rate period is over?  

We recommend you review your Home Loan Offer Letter to understand when the fixed period is over. We will also notify you shortly after the fixed period has ended.

How will I know what my interest rate is once the fixed interest period is over?  

The interest rate during the variable interest rate period is comprised of:

- HSBC Margin: this is a fixed rate which can be found in the HSBC Home Loan Offer Letter; and
- 3 Month AED EIBOR rate: this is the 3 month AED Emirates Interbank Offer Rate as published in our Schedule of Services and Tariffs for that period. As this is a future date, we recommend you take the time to review this at the start of the variable interest rate period.

How is the interest rate calculated during the fixed interest rate period? 

The interest rate is a HSBC rate where we take into account various factors including our cost of lending to you.

Eligibility

You can apply for an HSBC Home loan, if:

  • You are a UAE resident aged between 21 to 65 years3 and
  • You have a minimum monthly income of AED 15,000/-

If you reside outside the UAE, you may be eligible for a HSBC Home Loan provided you are an HSBC Premier Customer and meet our lending criteria.



Home Loan Terms and Conditions, Schedule of Services and Tariffs apply.


1 Provided payments are made on time. Rate is based on reducing balance. Please note that the fixed interest rates are only available up to a maximum of 5 years, post which customers will be moved to a variable rate loan based on a 3-month EIBOR.


2 Home Loan approval is in principle. It will be provided in 60 minutes after submitting satisfactory documentation to an HSBC Mortgage Advisor during working hours between Sunday to Thursday, 8:00am to 4:00pm
If you default on your home loan agreement, this may result in additional charges and/or discontinued service (see our Schedule of Services and tariffs)


3 HSBC Premier by Home Loan: Eligibility criteria
If your home loan meets the below eligibility criteria, then you may be eligible for a Premier bank account with us. Please contact us for more details.

a. Your home loan amount must be AED 3 million or more

b. You must successfully meet the HSBC Premier by Mortgage eligibility criteria set out above in order to take advantage of discounted fees and charges available to HSBC Premier Customers. Please see our Schedule of Tariffs for further information

c. AED 350,000 has to be maintained in deposits and/or investments within 24 months or if the Home Loan is fully paid-off before 24 months to avoid charges and discontinued service or Monthly net salary transfer of AED 50,000 or above.

4 Please note the upper age limit is 65 for salaried individuals and 70 for self-employed or UAE Nationals.

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Our representative will call you back in 60 minutes


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Call us at your convenience:


800 HOUSE (800 46873) within UAE
+971 4 325 4792 outside UAE


Lines open from Saturday to Thursday 8am – 4pm



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