HSBC on Tuesday 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 the Tourism Development & Investment Company (TDIC).
HSBC also announced the introduction of lending for leasehold properties in Dubai.
“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,” said Marwan Hadi, head of Retail Banking and Wealth Management, UAE, HSBC.
HSBC partnered with Allsopp & Allsopp Mortgage Services, Home Matters and Lion Mortgage to expand mortgage distribution in the UAE. HSBC’s latest Beyond the Bricks report found that 76 per cent of respondents in the UAE 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.
“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,” Hadi said.
Homebuyers interested in Abu Dhabi and leasehold in Dubai, now have access to HSBC’s competitive rates starting from 3.49 per cent with financing up to 80 per cent of the property value for UAE nationals, and 75 per cent 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.
Customers can make partial payments of up to 25 per cent of outstanding loan amount every calendar year at no charge and there are no early settlement charges after the first three years of their loan.