|Loan to Value||Interest rate||Repayment period|
|Up to 80%||Starting from 4.5% per annum||Up to 25 years for villas and townhouses
Up to 20 years for apartments
Make the most of our latest offer:
- Low interest rate starting from 4.5%* a year
- Salary starting from OMR 500pm
- Finance up to 80% of the property value
More great benefits:
- Transfer your existing mortgage or apply for a new one
- Payment period from 5 to 25 years or until the age of 60 (subject to life coverage)
Save a significant amount of money with overpayments. You can overpay with a 1% penalty fee. Once you make an overpayment, there will be no re-draws available against it in the future.
Apply for very competitive interest rates for completed and under construction properties.
You can get a HSBC home loan if:
- You're an Omani national or an expatriate aged between 25 and 60 (men)/55 (women) (at the time of loan maturity)
- Salary transfer required
- Minimum salary of OMR 500
|HOME PURCHASE - VARIABLE RATE|
Completed properties Loan to value up to 80%
starting from 4.5%*
|The interest rates quoted are variable/ floating, charged on outstanding value of loan and subject to change in line with the mortgage agreement.|
|Reduced Rate for Completed Properties
Loan to Value (LTV) less than or equal to 60%
Under Construction properties Loan to Value up to 70%
starting from 4.5%*
|The interest rates quoted are based on the 3 month EIBOR, charged on outstanding value of loan and subject to change in line with the mortgage agreement.|
|Land (for Omani nationals only)
Loan to Value up to 70%
|starting from 4.5%*||The interest rates quoted are variable/ floating, charged on outstanding value of loan and subject to change in line with the mortgage agreement.|
|Life insurance is mandatory and it must be assigned to the Bank.||To be arranged by HSBC with ALICO||Life insurance must be assigned to the Bank|
|Property Insurance fee||0.065% per annum||Property insurance fee is charged on the rebuild cost of the property. This can be arranged by HSBC in the first year of cover, to be reviewed annually by the borrower.|
Account set-up fees
|Processing fee:||OMR 50||Charged on the amount of the approved loan. To be paid at Home Loan account opening|
Account management fees
|Early redemption fee:||1%||Fee is to be paid on additional payments|
|Loan closure fee - transfer to another Lender||1%||If your existing loan is being transferred to another bank / finance company, fee is to be paid on outstanding loan amount.|
|Loan closure fee - through own funds or upon maturity||1%||Administrative charge for the closure of the account, and the release/return of relevant documentation.|
|Home Loan Liability Letter||OMR 2/-|
Property valuation fee
|Type of purchase / Financing||Under construction||Completed||To be paid at the application stage for completed properties. This is charged by the independent valuation companies on HSBC's panel and is non-refundable if the application does not progress.
For under construction properties, valuation is done in every 33% of the construction stages and payment schedule i.e. in under construction stage and upon completion. Valuation is mandatory.
|Pre. comp-stage||Upon completion|
What does the HSBC Home Loan provide?
It provides the opportunity for customers, both national and expatriate, to borrow money for the purchase of selected residential developments in Oman.
Do I have to have a HSBC bank account to apply for a HSBC Home Loan?
Yes, however you can apply without being a current HSBC customer and we will arrange an appropriate account for you if you are approved for a Home Loan.
Who is eligible?
Customers earning a salary of OMR 500/- and above (or equivalent in other currencies), who wish to purchase a property from one of the selected development site's for which HSBC is providing finance, subject to meeting HSBC's lending criteria.
Does the HSBC Home Loan apply to any property?
Any property in Oman for Omani nationals.
For expats, properties at developments approved by HSBC.
What are the principle features of HSBC Home Loan?
The principle features are:
Variable rate of interest. This rate is subject to review.
Maximum tenure period : a maximum term of 25 years (subject to repayment before 60th birthday) for villas and townhouses.
Maximum tenure period : a maximum term of 20 years (subject to repayment before 60th birthday) for apartments.
Finance amount up to 80% of the purchase price or the professional valuation, whichever is lower.
What are the advantages of a home loan with HSBC?
We can arrange competitive home loan rates.
As a major international bank we are also able to offer our clients a full range of financial services and products - i.e. budget accounts, money remittance services, credit cards, personal loans, vehicle finance, financial planning services, phone and internet banking, etc.
How is interest for a HSBC Home Loan calculated?
Interest is calculated on the daily balance outstanding on your Home Loan account. Your monthly instalment will be applied to your outstanding balance, plus the interest accrued.
How do I apply for a HSBC Home Loan?
You can discuss your needs with a member of the HSBC Home Loans team, who will conduct an initial fact find interview to ensure that you have a full picture of what is required.
What happens if I sell the house before the Home Loan is paid off?
We will require you to repay the outstanding Home Loan At 1% penalty fee applicable. and interest owing up to the time of sale.
Can I arrange my own insurance?
Yes, customers can take insurance for life and property cover arranged by HSBC, or provide their own cover through an approved insurer and assign it to HSBC. Building insurance and life insurance are both mandatory.
What is the Completion Payment Procedure?
Regarding the Completion / Final payment towards the developer, we would like to inform you that our processing period for completion payment is 12-15 working days. Once the valuation report is obtained (cost is borne by the customer), the payments will be effected within 5-7 working days.
We request you to have sufficient funds available in your current account, as the account will be converted from under construction loan account to completed home loan account (where you will start paying monthly installments), funds available for interest/profit outstanding, valuation fees, building insurance (only for Life insurance monthly premium).
The loan must also be registered at the Ministry of Housing once the possession is provided by the developer. Registration of the property is mandatory under the Ministry of Housing; hence it's of utmost importance that the registration is done as soon as the developer provides the possession.
What is the Mortgage Closure Procedure?
If you are planning to close your mortgage account with us, we request you to let us know the appropriate scenario applicable. This information is required by us in order to issue you the relevant liability letter.
1. Are you planning to sell the property to cash buyer? If so, please provide the name of the buyer.
2. Are you planning to sell the property to a buyer who is availing a mortgage with HSBC Bank Middle East? If so, please provide the name of the buyer.
3. Are you planning to sell the property to a buyer, who is availing his/her mortgage from another bank or finance company? If so, please provide the name of the bank /company.
4. Are you planning to transfer your mortgage from HSBC to another bank or finance company? If so, please provide the name of the bank /company.
5. Are you planning to pay off and close the mortgage with your own funds? If so, please specify the source of these funds.
Basic charges for per mortgage closure will be:
|Mortgage Closure Fee||1% penalty fee on the outstanding amount|
|Mortgage liability letter/redemption letter||OMR 2/-|
Process and Requirements
- Once you let us know your closure scenario, we shall arrange to prepare your Redemption Statement, which will give you the pay off amounts including charges, within 3 working days
- Additionally a liability letter will be prepared (applicable in scenario number 3 and 4 only) in order for you to forward the same to the other bank / company
- The Redemption Statement needs to be signed by yourself and returned to the Bank in original, in order for us to proceed with your closure. (Bank will be unable to settle the mortgage outstanding if the signed Redemption Statement is not returned back to HSBC Home Finance Dept)
Mode of Payment
Required funds can be made available in your HSBC bank account by transfer TT or cheque deposit.
Number of days to release your documents
- If you close your mortgage through cash (funds available in your HSBC account) then the documents will be released after 7 working days
- If you close your mortgage by giving us a cheque (manager's cheque) then the documents will be released after 8 working days
What is the Mortgage Part Payment Procedure?
- You can make a part / bulk payment other than your installment amount at any time, (1% penalty fee applicable)
- Please note that there will not be any re-draw facility available once you have made the part payment
- You can choose to make the part payment by signing a debit authority for us to facilitate the payment
- For Amanah part payments, you will need to sign a letter, after receipt of which, the part payment will be made
- For any further queries, you can contact your mortgage advisor At email@example.com or call 800 74722