Banking giant also announces the introduction of lending for leasehold properties in Dubai
Banking major HSBC has announced the launch of home loans for selected 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 Tourism Development & Investment Company (TDIC).
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.
HSBC’s Beyond the Bricks 2.0 report said 76 percent 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.
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.”
Financing of up to 80 percent of the property value is available for UAE nationals, and 75 percent for expats.
Regionally, HSBC has operations in the UAE, Egypt, Turkey, Qatar, Oman, Bahrain, Kuwait and Algeria. In Saudi Arabia, HSBC is a 40 percent shareholder of Saudi British Bank (SABB), and a 49 percent shareholder of HSBC Saudi Arabia for investment banking in the kingdom.