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Standard Chartered Bank (SCB) mortgage: full guide
A guide to Standard Chartered Bank mortgage offers, including their terms/conditions, typical loan offers, and application process with required documents.
Overview of terms and conditions
Standard Chartered Bank (SCB), also known as just Standard Chartered, has a presence in 59 markets across 4 continents and also serves clients in 83 additional locations. SCB is one of the top 100 largest companies on the London Stock Exchange and, as of the end of 2021, has a total of USD 214 billion (AED 786 billion) in risk-weighted assets across all locations. Their long-term goals as a business include reaching net zero carbon, increasing the participation of women and small businesses, and resetting globalization by connecting capital and supporting companies.
SCB has the following mortgage products for residential properties:
Conventional
Home Suite
MortgageOne Account
Islamic
Saadiq Home Finance
SaadiqOne Account
The following are the general terms and conditions for their home loans that apply to all mortgage applicants
Financing for UAE residents only
Can finance completed residential properties in freehold and leasehold areas in Dubai and Abu Dhabi that are on SCB’s approved development list. The property can only be used as a private residence for the client’s immediate family.*
Loan amount up to AED 18,000,000
Down payment from:
15% for nationals
20% for expats
Some of SCB’s approved projects/buildings have specific loan-to-value (LTV) restrictions
Minimum monthly salary AED 15,000
Salary transfer not required
Bank valuation fee: AED 3,150
Refundable once the client receives full loan amount (aka loan disbursal)
Service fee: AED 5,250
Partial / full settlement terms
Prepayment of up to 30% of the outstanding loan amount allowed per annum
In excess of 30%, 1.05% penalty on the exceeding amount, capped at AED 10,500 (including VAT)
Fee free settlement in case of property sale
In case of early settlement through client’s own funds: 0.525% penalty of the outstanding amount, capped at AED 10,500 for the first 5 years of the mortgage. Then, 0% penalty from the 6th year onwards.
Must give SCB a reasonable notice in writing of intent to make a prepayment
Late payment fee: AED 472.5
Bank transfer fee - 1.05% penalty on the exceeding amount, capped at AED 10,500 (including VAT)
Non-mandatory life insurance terms**
0.30% per annum of the outstanding loan amount; 0.60% per annum of the mortgage balance for joint life if both incomes used for affordability
Building insurance
0.05% per annum of the property value (+ VAT)
For conventional home loans, external property insurance can be assigned for a fee of AED 525 to SCB
*SCB may finance under-construction properties from their list of approved developments. In this case, the interest rate would be floating until the property is completed.
**There is no requirement to have life insurance and no fee for assigning external life insurance, but the bank has the unconditional right to recover all dues in the event of the client’s death through foreclosure.
The two conventional loan options offered by SCB are:
Home Suite
MortgageOne Account
The general terms for Home Suite are:
Monthly average balance of AED 3,000 in SCB account required
Profit rate from 4.2% per annum (fixed for 1 year)
No processing or valuation fees
No life insurance required
The MortgageOne Account option allows customers to link their current account and home loan together in order to help them accrue less interest and pay off the mortgage faster. Interest is calculated on the difference between the loan balance and the amount in the customer’s account. This means that more of each monthly payment will go toward the principal loan amount rather than the interest, resulting in a shorter loan tenure. Profit rates from the account are calculated on the monthly average balance and credited to the account semi-annually.
The general terms for MortgageOne Account are:
No minimum account balance
If the account has less than AED 10,000: no profit
If the account has AED 10,000 or above: profit rates announced at the end of each month
Interest from 4.9% per annum (fixed for 1 year)
Fixed rates from 1-5 years available
No processing fee if transferring your home loan to MortgageOne Account
SCB’s clients can enjoy Priority Banking benefits with potentially lower rates and more favorable conditions if they have a mortgage balance of more than AED 2,500,000, transfer a salary of AED 30,000 per month for 12 months, or have an account(s) balance of AED 370,000.
Now that we’ve covered some of SCB’s basic mortgage options and terms, let’s look at potential loan offers for salaried and self-employed borrowers and their Islamic mortgages. The rates that are listed below were updated by SCB on January 20th, 2023, and, along with the specified fees and costs, could change without notice. The 3-month EIBOR rate is from the UAE Central Bank website and is current as of January 25th, 2023. EIBOR rates are updated every day and change with the market.
Mortgages for employed borrowers
Standard Chartered Bank offers both fixed and variable-rate mortgage loans. They don’t have much information on their specific loan offers for their customers; however, you can see one variable-rate offer from SCB for salaried borrowers below.
Variable-rate offer:
1.29% margin for the life of the loan + 4.768% (3-month EIBOR) = 6.058%
Minimum floor rate of 2.25%
A mortgage broker like Kredium can provide you with personalized loan offers from SCB (and other top banks in the UAE) while guiding you throughout the entire mortgage process.
Mortgages for self-employed borrowers
In general, self-employed borrowers in the UAE will be subject to higher interest rates since their monthly income is often more variable.
Variable-rate offer:
1.39% margin for the life of the loan + 4.768% (3-month EIBOR) = 6.158%
Minimum floor rate of 2.25%
The interest rate is a bit higher for self-employed customers, but the minimum floor rate remains the same as it is for employed borrowers.
Islamic mortgages
Saadiq is SCB’s global Islamic banking network that spans across the Middle East, Asia, and Africa. These Islamic financing options are compliant with Sharia’h law.
Their two Islamic products are:
Saadiq Home Finance
SaadiqOne Account (SOA) - the Islamic variant of MortgageOne
Saadiq Home Finance is based on the rent-to-own concept of Ijarah, where the bank purchases and leases the property to the customer for a variable rental payment, after which they sell the property to the customer for a nominal value.
The general terms for Saadiq Home Finance are:
Profit rate from 4.2% per annum (fixed for 1 year)
No processing or valuation fees
Free property Takaful (building insurance) for life
SaadiqOne Account (SOA) is based on the concept of Mudaraba, where the bank invests the client’s money in a commercial enterprise and each party receives a specified ratio of the profit (decided upon opening the account). This is the Islamic variant of SCB’s conventional MortgageOne option. It works very similarly, linking the customer’s account and home finance facility so that the variable rental (profit rate) is calculated on the offset amount between the home finance facility and the amount in the account. It enables customers to pay off their home finance more quickly and save on variable rent. Clients will also get a return on the average monthly balance in their SOA twice a year.
The general terms for SaadiqOne Account are:
Available for completed residential properties financed by SCB
Profit rate from 4.9% per annum (fixed for one year)
Free property Takaful for life
SaadiqOne Account Offset Fee: Up to 1.575% per year of the Preset Safety Limit (outstanding Home Finance amount as per the standard payment schedule)
Other terms and conditions that may be applicable for their Islamic mortgages include:
Finance processing fee: 1.05% of finance amount
Application processing fee: 0.525% of finance amount
Partial / full settlement fee: 1.05% on prepaid amount
Property Takaful up to 0.0483% per annum of property value
Late payment fee (AED 472.5) donated to charity
Application process
The start of Standard Chartered Bank’s mortgage application is shown below. A mortgage broker can help you understand financial and mortgage terminology and look out for your best interests during the mortgage process.
As with all mortgage applications, SCB will require each client to submit certain personal, financial, and property documents.
For SCB’s mortgage application, you must submit:
Passport, Emirates ID, Visa (for expats)
Salary letter of payslips
Bank statement
Additional supporting documents
When applying for an Islamic mortgage you’ll need:
Copy of Passport, Emirates ID, and Visa (for expats)
Salary certificate or payslip
Bureau Consent and UAE Fund Transfer System Consent Form
If self-employed: trade license, share certificates, audited financials for the last 2 years
For buy-out cases: title deed / Oqood + Developer Request, sales purchase agreement / Memorandum of Understanding and liability letter
To wrap up
Standard Chartered Bank has a global footprint that extends to the UAE real estate market. They have conventional and Islamic financing options for UAE residents that are salaried and self-employed. If you’re interested in learning more about SCB’s mortgage offers, you can reach out to Kredium and we can help you find the right option. We are partnered with all of the top banks in the UAE and can help nationals, residents, and non-residents find both residential and commercial mortgages for future homes and investment properties.
To estimate monthly mortgage payments, payment schedule, and potential rental income while searching for a property, a mortgage calculator can be a great resource. Our property search portal with thousands of properties in Dubai can help you peruse all the latest offers from the top UAE developers. To get guidance from our mortgage and real estate professionals, all you need to do is register on our website or contact us.
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