HSBC Home Loan

Building a house is probably one of the most important decisions that you would make in your life. Achieving this goal may often seem like a challenge, but with the right mortgage loan, making this expensive purchase becomes easy and doable. If you are planning to get a home financed in UAE, then some of the best options are offered by HSBC mortgage loans.

HSBC is a prominent name in the global banking industry. The bank is present in over 60 countries and has had a strong base for over 150 years. In UAE too, HSBC offers its customers a number of banking services making life easier and simpler. Fulfil your dream of buying a house by opting for a home loan/ mortgage loan from HSBC today.

HSBC Home Loan Plans

HSBC offers three different kinds of home loan options. You can choose between Fixed-Rate Home Loans, Variable Home Loans and Green Home Loans. Given below are a few key details:    

1. HSBC Fixed Interest Home Loan 
2. HSBC Variable Interest Home Loan
3. HSBC Green Home Loan

Fixed Interest Home Loan 

You can choose mortgage repayment for 5, 3, 2 or 1 year. A fixed loan rate means that till the time your fixed-rate term ends, your repayment will stay the same. This will apply even if there is a change in base interest rates of home loans.

Variable Interest Home Loan 

If you don’t want to fix the interest rates, you can opt for the 3-month EIBOR-based (Emirates Interbank Offered Rate)      variable home loan. Here, the rates are reviewed on a quarterly basis. As per the EIBOR, your interest amount will vary.

Green Home Loan

Green home loans from HSBC are offered for financing sustainable homes. An environment-friendly home is the way to a better future. When you purchase a sustainable property, you not only contribute to the planet’s well-being but also get a discount on the home loan rate. 

Features and Benefits of HSBC Home Loan & Mortgage Loan

A home loan is going to be a long term commitment, and it is only prudent to analyze all the features of a home loan before you take it. To facilitate  this decision, we have listed the most prominent features of HSBC Home loans:

1. Easy Down payment Options - HSBC home loans offer up to 80% financing on your property. This means when you take an HSBC home loan you can get up to 80% of the property value. For example, if the cost of your house is AED 100,000, you can borrow AED 80,000, thus having to pay only AED 20,000 as the down payment. This makes it very easy for you to take the first step toward buying your dream house.
2. Competitive Interest Rates - HSBC offers some of the best home loan options in UAE along with highly competitive interest rates. Additionally, you can get services like balance transfer for your HSBC homes loans as well. Given below are the basic Annual Percentage Rate (APR) you can enjoy with HSBC home loans:
   1. Variable 3-month EIBOR home loan from 1.95%
   2. Fixed-rate home loans from 2.53%
3. Get the benefit of Additional Discounts - HSBC also offers the following bargain deals:
   1. Enjoy a 0.25% rebate on home loan interest by opting for a Green Home Loan Discount.
   2. You are eligible for a complete arrangement fee waiver on all kinds of home loans.
   3. Every calendar year you can pay up to 25% of the outstanding balance, free of charge.
   4. You get a 10% discount when you buy home insurance while taking a home loan.
4. Quick In-Principle Approval - HSBC offers a very quick and efficient Approval in Principle. You can take a standing approval before applying for the loan to increase your chances of getting the application approved. The bank claims to provide approvals for HSBC home loans in a matter of 60 minutes.
5. Get the Best Advice - Buying a house can be a herculean task, not just financially but also mentally. It can be quite overwhelming if you are a first-time homebuyer. A team of HSBC home loan experts are always available to advice you so that you make the best decision regarding your home financing needs.  
6. Choose an Interest Rate that you find Best - When you opt for an HSBC mortgage loan, you have the freedom to choose either a Fixed-rate home loan or a 3-month EIBOR based loan that offers a variable rate of interest.

Eligibility Criteria of HSBC Home Loan:

For Residents:

Let us try to understand HSBC home loan eligibility criteria. To apply for an HSBC home loan, you need to be a UAE resident who:

• Is in 21 years to 65 years of age
• Has a minimum monthly income of AED 15,000
• Is a salaried employee or is self-employed.

For Non-Residents:

If you are not a UAE resident but wish to buy property here, you can apply for your HSBC home loan after clearing an additional set of criteria. You have to be an HSBC Premium or Jade customer to apply for HSBC home loan as a UAE non-resident.

Some Key Facts About HSBC Home Loan Interest Rates in UAE:

Given below are a few facts and terms related to HSBC home loan interest rates: 

• If you are an existing HSBC Jade or Premium customer, you can get discounts on the home loan interest rates.
• When you opt for a more sustainable home, you can get a discount on the HSBC home loan rate under the Green Home Loan.
• Based on the outstanding amount, the interest is calculated on a daily basis.
• Individuals who do not live in UAE have to pay rates that may differ from UAE residents.
• The available types of HSBC home loan rates of interest are: 
  • Variable 3-month EIBOR home loan from 1.95%
  • Fixed-rate home loans from 2.53%

Take a look at the table below to get an idea of some of the HSBC mortgage loans: 

Documents Required for HSBC Home & Mortgage Loan 

The following documents will be needed along with your HSBC home loan application:

• Emirates ID, passport and resident visa
• Last 6 months Bank Statement
• Salary Slip or proof of income 
• Ownership Documents of the property
• Proof that you have enough funds for making the down payment

How to Apply for HSBC Home Loan?

Applying for a home loan becomes simpler with HSBC. The bank recommends that before applying for a home loan you should get the Approval in Principle. The Approval in Principle will give you a fair idea about the amount that you are eligible for. It also helps understanding how HSBC home loans works and other aspects without costing you anything. You would need a few identification documents, your salary statements and about an hour of your time to get the Approval in Principle. 

• To find out more about the Approval and home loan you can request a call back from HSBC.
• If you are an existing Premium or Jade customer, you can get in touch with your RM  (Relationship Manager) to start the Home Loan process.

HSBC Mortgage Loan Calculator:

HSBC Mortgage Loan Calculator allows you to calculate the home loan instalment with ease. The free online tool is a great way to get a fair idea of how much money you would have to take out to repay the loan amount. Find out the required information by entering the tenure of the loan, the interest rate available and the loan amount you are taking. You are free to increase or decrease the variables such as the tenure and loan amount to make the instalment fit in your budget easily.

Terms & Conditions for HSBC Home Loan  & Mortgage Loan:

• AED 350,000 is the minimum home loan amount that you need to take.
• Like all other banks, HSBC will also carry out a complete credit bureau check about your credentials and credit report. Only after a complete verification will the loan application be processed. 
• Your credit history plays an important role in your loan application being accepted.
• The report will be recorded on the Credit Bureau and visible to other companies as well.
• In case you do not make the repayments regularly, the following may happen:
  • Your property may be taken over
  • Your credit rating will be negatively affected
  • Your loan account will go into arrears
  • You may have to re-finance the loan. This will take much longer for you to repay the loan and you may end up paying higher interest rates
• Every calendar year, you can pay up to 25% of the outstanding loan amount, without having to pay any extra charges.
• In case you decide to pre-close your loan, you will have to pay an early settlement fee. 

Why HSBC Home Loan in UAE?

One of the world’s largest banks, HSBC has a customer base of 40 million. Its presence in the United Arab Emirates dates back to 1946 and it has been a prominent player in the UAE banking industry ever since. 

Whether you are looking for a home loan lender or wish to transfer your balance to a different bank, HSBC could be your go-to choice. You can rest assured that HSBC home loans would not just offer you competitive interest rates but also provide you with the best customer service. First time home buyers can seek the expertise of HSBC home-loan advisors who help you with just about everything you need to know about home loans.  

Being a Jade or Premier customer offers you all the more benefits. Not only does the process of taking a home loan becomes smoother and quicker, but you can also get all the help from a dedicated Relationship Manager who would help you every step of the way on your loan journey.  

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