Expansion targets new home buyers

HSBC UAE expects to see strong growth in its mortgage portfolio as growing numbers of new home buyers are seeking financing solutions, said Marwan Hadi, Head of Retail Banking and Wealth Management in the UAE.

With the real estate price softening over the last few years, home ownership has become affordable and within the reach of salaried individuals.

“The prices have become very attractive for home buyers while many developers are offering attractive payment plans. We come in after the customer has paid his 30 per cent down payment. Thus, on these properties the risk of devaluation is very low as the down payments are made on developer rates,” said Hadi.

From future valuation perspective, Hadi be- lieves the UAE’s property markets are well protected. For bank’s mortgage loans are less risky with tight loans to value ratios ( LTV). From a consumer perspective, he said, the market is maturing fast with most new home owners buying to live in their properties. With the expatriate population becoming less transient in nature, home ownership is likely to increase in the UAE.

As part of its mortgage business growth strategy in the UAE, HSBC has tied up with leading brokers to make competitive mortgage deals available to customers across broker networks. Currently the bank has a tie- up with three brokers such as Allsopp & Allsopp Mortgage Services, Home Matters and Lion Mortgage.

“We have plans to tie up with three more real estate brokers this year to provide more choice and convenience to our customers. Partnership with brokers give people more access to our home loan products,” said Hadi.