HSBC Amanah home finance rate reduced

The HSBC Amanah home finance rate has been reduced.

Effective from July 1st, the HSBC Amanah home finance rate will be 5.74 per cent, down 0.25 per cent.

The HSBC deal, which is fully compliant with Shariah law, involves the purchase of the property by HSBC, which is then leased back to the customer over an agreed term, normally 25 years.

Customers make monthly payments of rent as well as payments towards the purchase price.

The rent is worked out by applying the Amanah home finance rate to the purchase price, less payments.

HSBC's Islamic finance division, HSBC Amanah, launched in 1998, with the first home purchase scheme and current account introduced in July 2003.