HSBC Green Home Loan

One of the leading global banks, HSBC Bank is reputed to serve about 39 million customers around the world through its impeccable banking services including Wealth and Personal Banking, Global Banking and Markets, and Commercial Banking. Coming to the UAE in 1946, the bank has become a reputed provider of banking products like credit cards, home loans, personal loans, bank accounts, and more in the Emirates.

One of the unique and most sought-after home loan products these days is the HSBC Green Home Loan. This HSBC mortgage loan is part of the green initiative taken by the bank. Read the following sections to know more about HSBC Green Home Loan.

Features and Benefits of the HSBC Green Home Loan

Designed to propagate a greener future, the HSBC Green Home Loan offers you impeccable benefits. This home loan in the UAE is designed to align with the bank’s financial commitment to the Paris Agreement Goals.

It’s worth noting that this HSBC mortgage loan also complies with the UAE government’s 2021 vision of a Sustainable Environment and Infrastructure and the Dubai 2040 Master Plan.

Here are some quick features of this home loan in the UAE -

• Maximum Loan Repayment Tenure - 25 years
• If you are purchasing a home that holds Gold or Platinum LEED certification, you get 0.25% off on the standard interest rates and an additional 100% discount on the arrangement fees.
• This HSBC mortgage loan is available on a 3-month variable EIBOR.
• The loan can get approved in a matter of 60 minutes if you apply for Approval in Principle.
• The bank also arranges for life and property insurance. Note that this insurance is mandatory for townhouses and villas in the Emirates. 

How Does HSBC Green Home Loan Work?

You would be eligible to apply for this HSBC home loan if you are planning to purchase a property that is Gold or Platinum LEED certified. Even if you are not buying such property but are sure that your house is sustainable, the bank will look into the following in your property -

• Installed solar panels that should cover a major portion of the energy requirement
• Measures for saving water
• Other measures for energy efficiency like isolation, highly efficient air conditioning systems, and more
• Waste management system followed in your building to help prevent landfilling 

Eligibility Criteria to Apply for HSBC Green Home Loan

To avail of the HSBC Green Home Loan in the UAE, you need to meet the following eligibility criteria -

• Nationality - UAE residents
• Age Group - 21 years to 65 years
• Minimum Monthly Income Required - AED 15,000
• The property should be Gold or Platinum LEED validated.

Documents Required to Apply for HSBC Green Home Loan

Here are the documents required to apply for HSBC Green Home Loan in the UAE -

• A valid passport with residence visa page and Emirates ID
• Salary certificate
• Personal bank statement for the last 6 months
• Documents of property ownership
• Proof of funds for down payment

Interest Rates Applicable to HSBC Green Home Loan

HSBC Green Home Loan is available on the 3-month AED EIBOR subjected to quarterly review. In addition to this, a fixed margin is set for the entire loan tenure. 

Fees and Charges Levied on HSBC Green Home Loan

Tabled below are the fees and charges applicable to HSBC Green Home Loan -

Description	Amount
Home Loan Arrangement Charges	AED 2,500 (AED 2,625 when VAT is included)
Early Home Loan Settlement Fees	1% (1.05% with VAT included) of the remaining loan amount or AED 10,000 (AED 10,500 with VAT), whichever is lower
Home Loan Liability Letter	AED 50 (AED 52.5 when VAT is included) charge per letter
Changes in the Parties on Home Loan Offer Letter	AED 500 (AED 525 with VAT included)
Loan Rescheduling Charge	AED 1,000 (AED 1,050 when VAT is included)
Clearance Letter Charge	AED 95 (AED 99.75 with VAT included)
Property Swap Administration Charge	AED 1320 (AED 1386 when VAT is included)
Issuing No Objection Certificate (NOC) Fee	AED 150 (AED 157.5 with VAT included)
Non-Standard Statement Production Fee	AED 100 (AED 105 when VAT included) charged per document
Overpayment Fee	1% (1.05% with VAT included) on the loan amount being overpaid
Other Certificate Charges	AED 75 (AED 78.75 when VAT is included)

HSBC Home Loan EMI Calculator

To smartly manage your funds after acquiring this home finance in the UAE, you can use the HSBC Bank Home Loan EMI calculator. This online tool helps you decide what portion of your funds should be deployed to repay the home finance. It helps in determining the estimated amount that you would need to pay per month as an equated monthly instalment (EMI).

To compute the instalment amount, you need to provide the following details to the calculator -

• Property Value
• Down Payment
• Loan Amount
• Interest Rate (in percentage)
• Repayment Tenure (in months)

Terms and Conditions to Note When Applying for HSBC Home Loan in the UAE

Given below are the terms and conditions to keep in mind when applying for this HSBC home loan in the UAE -

• You get a cooling off period of 5 business days from the date of signing the agreement to cancel this home loan in UAE, where you can cancel the HSBC home loan without any penalty.
• When applying for a home loan in the UAE, you are responsible for -
  • Upkeeping the property and making sure all the fixtures and fittings are in good condition 
  • Not neglecting the property or doing anything else that could reduce its value
  • Not making any structural changes or additions to the property without informing the bank 
  • Not leasing the property to anyone without getting prior written consent from the bank
  • Not trading the property without the bank’s written consent
  • Adhering to the laws and government regulations that apply to your green property.
• In case of a default, the home loan debt will be instantly due and payable. This would be the case if you fail to pay any monthly instalment or other sum to be paid when due. 
• Listed below are the events in which you can default -
  • Expiry or termination of lead for any reason
  • Transferring your rights, obligations, and benefits to the third party without informing the bank
  • Make any changes to the lease agreement without informing the bank in advance

How to Apply for HSBC Green Home Loan?

You can apply for HSBC Bank Green Home Loan in any of the following ways -

Via Policybazaar.ae

You can quickly and easily apply for an HSBC Bank Green Home Loan on Policybazaar.ae. The top home financing choices available in the UAE from the biggest banks and lending organisations are all available on this digital aggregator platform. The website is pretty easy to use and lets you submit an application for home financing quickly.

Choose the "Home Loan" tab on the home screen or choose the same choice from the "Banking Products" tab on the menu bar on policybazaar.ae. You will be taken to the lead form once you have finished. Correctly complete the form, then select the "Proceed" tab.

This will take you to our quotations page, where you can look up details about the HSBC Bank Green Home Loan. After reviewing the advantages and features, select the "Apply" option. You can ask our team of professionals for help if you have questions regarding any information.

When you use Policybazaar.ae to apply for an HSBC Bank Home Loan, you are qualified for the following features and advantages:

• Platform to search for and contrast house loans and financing offered by the best banks and lending organisations
• Free aecb credit score access
• Options for home loans at the most affordable rates in the UAE 
• Advice from experts if you want to know about your options
• Availability of 24-hour customer assistance

Via Online Banking

You can also apply for HSBC Green Home Loan from the official website of the bank. For this, simply log into your account and follow the instructions thereon.

FAQ's