Tickets that were originally priced at Rs 2,500 are being resold for as much as Rs 300,000
The move is expected to give UAE’s flagging real estate sector a much-needed fillip while providing more flexibility to end-user market, a bank spokesperson told Khaleej Times.
By increasing the loan-to-value, or LTV ratio, the bank hopes to attract more homebuyers who need to make a down payment of 25 per cent of the value instead of 40 per cent, the spokesperson said. “It will make life easier for buyers who are looking to own a home and give them more flexibility and choice.”
HSBC continues to be a responsible lender and as such the offer is primarily targeted at end-users who have recently faced acute difficulties getting affordable mortgage finance,” said Abdulfattah Sharaf, CEO of Personal Financial Services of HSBC Middle East.
Sharaf said the increased LAT would be made available on HSBC’s Flexi-Loan and EIBOR- (Emirates Inter Bank Offered Rate) based mortgage products as well as on the bank’s Amanah Home Finance.
“In this challenging economic environment our flexible and transparent mortgage products will help customers to know where their interest rates are heading, allowing them to budget accordingly,” added Sharaf.
The Flexi-Home Loan also offers a variable interest mortgage rate and the adjustment of the rate is based on the discretion of the bank and market conditions. This rate is also reviewed every quarter, he said.
HSBC mortgages are available to expatriates and nationals with loan terms of up to 25 years or until the age of 65, which ever occurs first.
To qualify for a loan to purchase a property, the minimum salary requirement must be Dh20,000 and salary transfer is mandatory. Varying interest rates per annum start from 8.5 per cent.
The bank’s EIBOR “Tracker” mortgage offers customers 100 per cent transparency on pricing methodology and is benchmarked against the three months EIBOR plus a fixed margin depending on LTV, Sharaf pointed out. “The bank guarantees a rate review every quarter on 1st January, 1st April, 1st July, 1st October and the rate will be automatically re-set in line with the actual current three month EIBOR rate.”
Dubai-based Sherwoods Independent Property Consultants said they expected Dubai buyers to enjoy greater leverage in negotiating prices and payments with developers mainly due to strong competition from the secondary market, which has resulted in a broader range of investment options.
“Dubai property market dynamics will continue to shift in favour of tenants as more stock is introduced within the year. This general outlook has substantially redirected the real estate sector’s focus from supply to demand factors,” said Iseeb Rehman, Managing Director of Sherwoods.
Tickets that were originally priced at Rs 2,500 are being resold for as much as Rs 300,000
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