How to Get a Mortgage Loan from HSBC Oman

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HSBC Oman offers mortgage loans for individuals who’d like to take home loans. The loans are offered at cheap interest rates and have the following features.

 

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)

BENEFITS

Overpayments
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.

Competitive rates
Apply for very competitive interest rates for completed and under construction properties.

ELIGIBILITY

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

INTEREST RATES

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.
  • Insurance
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
  • Special notes:
    (1) Your home will be at risk if you do not make payments on a home loan, or any other finance that may be secured against it.
    (2) Effective from: 1 January 2011.
    (3) All fees are subject to change and will be applied to all customers from the date of change.
    (4) Charges/fees pertaining to Lands Department or any other entity pertaining to registration/perfection of Mortgage are to be borne by the customer on actual basis and are not listed in this tariff sheet.
    (5) All fees paid to the bank are non refundable.

 

 

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