HSBC New Home Loan

Based in Dubai, HSBC Bank Middle East Limited offers an array of banking products and services to UAE nationals and ex-pats. With a presence in more than 60 nations and a strong client base for the last 150 years, HSBC provides a range of banking solutions such as mortgage loans, credit cards, personal finances, money transfers, wealth management, and more. Similar diversity is observed in the HSBC home loans, which are available in the forms of fixed interest home loans, green home loans, and variable interest home loans. 

HSBC Bank: All You Need to Know

HSBC is one of the largest global banks with a client base of around 40 million customers. Present in the UAE since 1946, it offers promising financial solutions to both nationals and expatriates. One such facility provided by HSBC is the home loan in the UAE, with HSBC home loans being the go-to choice for several people residing in the UAE. 

With the loan experts from the bank guiding you through the entire process of availing of a home loan in the UAE at reasonable interest rates, you can have a hassle-free loan purchasing experience.  

Types of HSBC Mortgage Loan in UAE

HSBC offers three types of mortgage loans in the UAE. These include:

1. HSBC Fixed Interest Home Loan
2. HSBC Variable 3-Month EIBOR Home Loan
3. HSBC Green Home Loan

1. HSBC Fixed Interest Home Loan

With this new home loan, you can have a fixed interest for your monthly repayments for up to 5 years. Once this tenure for the fixed rate is over, you will immediately be shifted to a 3-month Emirates Interbank Offer Rate (EIBOR) based variable interest rate for the remaining loan term.

Some features of this loan type include

• Option to fix the interest rate and monthly repayments for up to 5 years.
• Users can overpay about 25% of the outstanding amount per calendar year without any fee charges, with an early settlement charge applicable if you cross that limit
• You don’t have to be an HSBC client to apply for this home loan, with the bank itself making arrangements for an account to repay the mortgage loan 
• Customers can apply for the Approval in Principle in just an hour 

Click here to Apply for this Mortgage Loan

2. HSBC Variable 3-Month EIBOR Home Loan

This home loan type follows the 3-month AED EIBOR principal and a fixed margin is created for the loan tenure. The interest rate increases or decreases as per the EIBOR, eventually affecting your monthly repayments.

The features of this mortgage loan in UAE include:

• Annual variable rate begins at 2.11% for HSBC Premier resident customers
• No early settlement fees is applicable even if you pay off the entire loan after three years or before your repayment period ends
• If your property is Platinum or Gold Leadership in Energy and Environmental Design (LEED) certified with the bank’s Green Home Loan, you can enjoy an additional 0.25% discount on the rate of interest
• To apply for this HSBC home loan in the UAE, you do not have to be the bank’s customer – the bank itself will arrange for an account where you can repay the loan easily
• In just an hour, you can easily apply for Approval in Principle

Click here to Apply for this Mortgage Loan

3. HSBC Green Home Loan

If you plan to build a sustainable home, you can easily avail of a Green Home Loan with HSBC which aligns its finance portfolio with the Paris Agreement goals. Here are the key features of this home loan:

• 0.25% discount on standard interest rates and 100% off on arrangement fees if you are purchasing a home that has Gold or Platinum LEED certification 
• This home loan is available in both fixed-rate and variable rate options
• You can easily apply for the Approval in Principle in just an hour

Click here to Apply for this Home Loan

HSBC New Home Loan

Some of the major features of HSBC New Home Loan are listed as follows:

• Minimum Salary Required: AED 15,000 per month
• Loan Amount: Up to AED 20,000,000
• Early Settlement Fee: 1%
• Reducing Rate: 3.24%
• Flat Rate: 1.8%
• Down Payment: 25%
• Loan Tenure: 25 years

Advantages of HSBC New Home Loan

The following advantages provided by HSBC New Home Loan make it an excellent choice for financing your home:

• Loan offered for already-constructed homes with deeds
• Money transfer not compulsory
• Provision to request additional funds for home improvement by applying for an equity release
• Option to apply for a loan amount of up to 75% of the property value
• Fixed rate for two years (variable the interest rate afterwards) 
• You can be qualified to take an HSBC home loan while having an account with another bank

Key Aspects Related to HSBC Home Loan

Some more details related to the HSBC home loan are discussed below:

• Both salaried and self-employed individuals (possessing a regular source of income) can apply for this loan 
• You need to be an HSBC Premier member if you are a non-resident and wish to apply for a home loan in the UAE
• The age range to apply for a home loan is generally 21 to 65 years 
• A minimum salary of AED 15,000 per month is required on the applicant’s part
• You can avail of a loan of up to AED 20,000,000

The advantages of applying for a home loan with HSBC Bank Middle East include:

• Simple Down Payment Options: HSBC mortgage loan offers about 80% finance on the estate, implying that you will get up to 80% of the property value. 
• Reasonable Interest Rate: The bank offers affordable home loans in the UAE with manageable interest rates. Moreover, you can even avail of services like balance transfer for the HSBC home loans. The annual percentage rate for variable interest home loans is 1.95% and 2.53% for fixed interest home loans.
• Additional discounts: HSBC offers the following additional offers to its customers:
• You qualify for a total arrangement fee waiver on all types of home loans
• Every year (as per the calendar), you can pay off up to 25% of the outstanding balance without any charge

• There is a 10% discount if you buy home insurance when applying for a home loan 
• Fast In-Principle Approval: With HSBC, you can apply for a standing approval even before applying for a loan, which increases the possibility of your loan application getting approved. These principle approvals are usually provided within 60 minutes. 

Salary Requirements for HSBC Home Loans in UAE

Applying for HSBC Home Loan in UAE

When you apply for a mortgage loan with HSBC, it is advised to get an Approval in Principle first. This ensures easy approval when you apply for a home loan in UAE. Thus, the question to be addressed first is:

How to Apply for an Approval in Principle?

The process is a straightforward one, as you can visit the nearest HSBC branch and fill out an application form for Approval in Principle. Keep in mind that you would be required to carry these documents:

• Official passport, Visa, or Emirates ID
• Income Statement or salary certificate

The procedure for approval is finished quickly once you have provided the required documents to your mortgage advisor. 

Who Can Apply for the HSBC Mortgage Loan?

Both UAE nationals and non-residents can apply for HSBC home loans. If you are applying as a UAE national, make sure that:

• Your age is between 21 and 65 years
• Your monthly income is at least AED 15,000

As a non-resident, you are required to be an HSBC Jade or Premier member or qualify for an account to pay for the home loan. 

Documents Required to Apply for HSBC Home Loan

To apply for an HSBC home loan, you would need to provide the following documents:

• Official Passport, Emirates ID, and Visa
• Last six months’ bank statements
• Property ownership documents
• Salary certificate
• Evidence of sufficient funds for the down payment

How to Apply for a Home Loan with HSBC?

Several options are available for applying for an HSBC home loan, as you can contact the bank’s customer service, visit the nearest bank branch, or go to the official HSBC website. Once you fill out the application form and submit the required documents, the bank will verify your documents and details and revert regarding your application status. 

Key Takeaways

With plenty of options and variants, HSBC Home Loan helps you get closer to achieving your housing goal. Besides the three main types of loans. i.e., fixed interest home loan, variable interest home loan, and Green home loan, the bank also offers HSBC New Home Loan for first-time home buyers. 

Whenever you apply for an HSBC loan, it is suggested to apply for the Approval in Principle first to accelerate the home loan approval process. Similarly, you can remove the hassles by proactively carrying all the necessary documents to receive the loan approval. 

Before making a purchase, you can explore all the top home loan plans in the UAE on policybazaar.ae. Simply visit the ‘Home Loans’ section on our website to check out and buy a home loan in the UAE in just a matter of a few clicks.