Abu Dhabi, UAE – HSBC today has launched home loans for select properties in Abu Dhabi in response to increased demand from customers. Eligible prospective home buyers interested in the Abu Dhabi market will be able to secure home finance with HSBC for completed residential properties by Aldar Properties and TDIC (Tourism Development & Investment Company).
HSBC also announced the introduction of lending for leasehold properties in Dubai.
Marwan Hadi, Head of Retail Banking and Wealth Management, UAE, HSBC said: “These steps form part of our growth strategy to expand our mortgage portfolio and provide choice, convenience and access to our customers. Earlier in the year, we partnered with three mortgage brokers to widen the availability of our competitive home loans. These brokers will also cover Abu Dhabi and leasehold lending in Dubai.”
HSBC partnered with Allsopp & Allsopp Mortgage Services, Home Matters and Lion Mortgage to expand mortgage distribution in the UAE.
2018 has seen a rise to 55% of buyers financing their home[1] and in HSBC’s Beyond the Bricks 2.0[2] report, 76% respondents in the UAE said they intend to become homeowners in the future. Moreover, the report found that the top two financial reasons for intenders to buy is for investment purposes and to fund a mortgage rather than pay rent.
Mr Hadi said, “Attractive opportunities in the housing market are encouraging more people to consider owning a home in the UAE. We will cater to that demand and provide access to locations our customers want. We are looking to cover more developers in Abu Dhabi in the future. We already offer competitive rates, tailored financial planning service and speedy Approval in Principle in 60 minutes[3]. Our expanding mortgage portfolio will be yet another value-add which will support customers as they embark on their home owning journey.”
Homebuyers interested in Abu Dhabi and leasehold in Dubai, now have access to HSBC’s competitive rates starting from 3.49% p.a[4] with financing up to 80% of the property value for UAE nationals, and 75% for expats. Customers can apply for a new home loan or transfer existing mortgages, without salary transfer, and are eligible for Premier status with a dedicated relationship manager[5].
Customers can make partial payments of up to 25% of outstanding loan amount every calendar year at no charge and there are no early settlement charges after the first 3 years of their loan.
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HSBC in the MENAT Region
HSBC is the largest and most widely represented international banking organisation in the Middle East, North Africa and Turkey (MENAT), with a presence in 9 countries across the region. HSBC has operations in the United Arab Emirates, Egypt, Turkey, Qatar, Oman, Bahrain, Kuwait and Algeria. In Saudi Arabia, HSBC is a 40% shareholder of Saudi British Bank (SABB), and a 49% shareholder of HSBC Saudi Arabia for investment banking in the Kingdom.
This presence, the widest reach of any international bank in the region, comprises some 350 offices and around 10,500 employees. In the year ending 31st December 2017, HSBC in the MENAT region made a profit before tax of US$ 1.5bn.
[1] Propertyfinder.ae https://www.propertyfinder.ae/blog/5-things-borrowing-2018/
[2] HSBC’s Beyond the Bricks report is a global study representing the views of 10,005 people in 10 countries and territories. Findings are based on a survey of home owners and non-owners who intend to buy.
[3] 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
[4] Rate is based on reducing balance and applicable to UAE Premier and Advance customers, subject to loan size.
[5] Complimentary Premier status awarded for customers obtaining a home loan of AED 3 million or more.
Media enquiries to:
Farah Farooq +971 56 6867337 farah.farooq@hsbc.com
Stacey Comber +971 56 9949104 stacey.m.comber@hsbc.com
© Press Release 2018
