• Home Loan BYTES FROM OUR KITCHEN

    HSBC Home Loan

    HSBC is one of the leading banks in Singapore offering customers a host of financial products and services including credit cards, loans, fixed deposits, investment options and more. HSBC Advance Banking and Premier Banking Customers enjoy additional privileges and lower interest rates on loans and higher interest rates on fixed deposits.

    HSBC describes its home loan offers as the best around since these come with zero lock-in packages. If you are looking for the right home loan option to fulfill your dream of owning a house, HSBC Home Loans could come to your rescue with their versatility and extensive benefits. HSBC Home Loans come with the option of either fixed or variable interest rates, and you can choose the format of your liking according to your convenience and estimated ease of repayment. The applicants can choose to peg the interest rate applicable to their home loan to the market rate as per the Singapore Inter-Bank Offered Rate or SIBOR based loan package, or opt for a fixed rate of interest rate as applicable.

    HSBC also offers the Smart Mortgage feature wherein the applicant’s home loan account can be linked to their current account and the interest accrued onto the current account would offset the interest payable for the home loan account, allowing them to repay the home loan in lesser time and thus save on the payable interest amount.

    Type of HSBC Home Loans

    HSBC offers the following home loan options to customers:

    • New property loan (to buy a new property - HDB or private)
    • Refinance loan (to refinance your existing home)
    • Commercial property loan (to buy a property for commercial use)
    • Home equity loan

    Features and Benefits of HSBC Home Loans

    HSBC home loan borrowers can customize their loan packages with a no lock-in option and enjoy the benefit of selling their properties any time they want without bearing the burden of pre-penalty charges. Additionally customers can also opt for a lock-in period from one to three years with lower interest rates.

    HSBC offers the flexibility of determining the repayment dates to its customers for some of its home loan packages, if the loan is not being serviced through CPF.

    HSBC also offers an array of additional services to home loan customers like 24/7 Emergency Home Assist service, HSBC credit cards and HSBC's Personal Line of Credit.

    SIBOR-pegged loan

    Customers opting for Singapore Interbank Offered Rate (SIBOR) based home loan packages can enjoy the no lock-in feature along with pegging their home loan interest rates to the market.

    Smart Mortgage

    Smart Mortgage customers can efficiently manage their finances by opting for this kind of home loan. Here, HSBC links the borrower’s home loan account to a current account and offsets the interest earned through this account to finance the home loan repayment. By doing this, HSBC customers pay lesser amounts of interests for their home loans and can also save up significantly. Additionally customers can also enjoy no lock-ins or lock-in periods for up to three years.

    Variable Rate Loan

    Customers can enjoy variable interest rates or floating rates and get a discount against HSBC’s Special Housing Rate (SHR). However, this type of interest rate depends on the Singapore Interbank Offered Rate (SIBOR), market fluctuations and other business conditions.

    Fixed Rate Loan

    HSBC customers can also take a home loan with fixed interest rates for the initial period of the loan tenure.

    HSBC Home Assist service

    This service will give you complimentary 24-hour emergency assistance pertaining to your house emergencies including plumbing, locksmith, electrical, etc. You will be eligible for 5 visits per year with up to S$150 worth of reimbursement per visit.

    HSBC Home Loan Promotions

    Enjoy promotional interest rates on fixed rate and SIBOR-pegged packages and vouchers from Resorts World Sentosa.

    Important Note: SIBOR rates refer to 1-month or 3-month Singapore Interbank Offered Rate for the Singapore Dollar.

    SIBOR-pegged promotional interest rates:

    Minimum loan amount S$800,000 S$200,000
    First year SIBOR + 0.52% p.a. SIBOR + 0.52% p.a.
    Second year SIBOR + 0.52% p.a. SIBOR + 0.65% p.a.
    Third year SIBOR + 0.75% p.a. SIBOR + 0.75% p.a.
    Fourth year onwards SIBOR + 0.75% p.a. SIBOR + 0.75% p.a.

    Promotional fixed interest rate package:

    Minimum loan amount S$500,000
    First year 1.52% p.a. (Fixed)
    Second year 1.52% p.a. (Fixed)
    Third year SIBOR + 0.75% p.a.
    Fourth year onwards SIBOR + 1.00% p.a.

    Additional promotions:

    • HSBC Premier Customers will receive vouchers from Resorts World Sentosa worth S$600 on a minimum loan amount of S$800,000.
    • HSBC Advance Customers will receive vouchers from Resorts World Sentosa worth S$300 on a minimum loan amount of S$200,000.

    Terms and Conditions:

    • These promotions are valid for applications submitted by 30 September 2017 and approved by 16 October 2017.
    • Other terms and conditions apply.

    HSBC Home Loan Interest Rates

    Home loan interest rates for buying a new property:

    SIBOR-pegged loan rates:

    Loan Tenure HSBC Premier Customers HSBC Advance Customers HSBC Personal Banking Customers
    First to third year SIBOR + 0.80% p.a. SIBOR + 0.85% p.a. SIBOR + 1.00% p.a.
    Thereafter SIBOR + 1.00% p.a. SIBOR + 1.00% p.a. SIBOR + 1.00% p.a.

    Fixed rate loans:

    Please contact the bank for fixed interest rates on HSBC home loans. Fixed rates are only applicable for the initial years after which interest rates will be pegged to 1-month or 3-month SIBOR.

    Smart Mortgage rates:

    Loan Tenure HSBC Premier Customers HSBC Advance Customers
    First to third year SIBOR + 0.80% p.a. SIBOR + 0.85% p.a.
    Thereafter SIBOR + 1.00% p.a. SIBOR + 1.00% p.a.

    Refinancing your home loan:

    SIBOR-pegged loans interest rates:

    Loan Tenure HSBC Premier Customers HSBC Advance Customers HSBC Personal Banking Customers
    First to third year SIBOR + 0.80% p.a. SIBOR + 0.85% p.a. SIBOR + 1.00% p.a.
    Thereafter SIBOR + 1.00% p.a. SIBOR + 1.00% p.a. SIBOR + 1.00% p.a.

    Fixed rate loans:

    Fixed interest rates will be applicable for the initial few years only. Please contact HSBC to know more.

    Smart Mortgage rates:

    Loan Tenure HSBC Premier Customers HSBC Advance Customers
    First to third year SIBOR + 0.80% p.a. SIBOR + 0.85% p.a.
    Thereafter SIBOR + 1.00% p.a. SIBOR + 1.00% p.a.

    Buying a Property for Commercial Use:

    SIBOR-pegged loans interest rates:

    2-year lock-in period HSBC Premier Customers HSBC Advance Customers
    First year SIBOR + 1.45% p.a. SIBOR + 1.50% p.a.
    Second year SIBOR + 1.45% p.a. SIBOR + 1.50% p.a.
    Third year onwards SIBOR + 3.00% p.a. SIBOR + 3.00% p.a.

    Note: Minimum loan amount of S$300,000 is applicable.

    Fixed rates:

    Fixed rates are applicable for the first few years followed by SIBOR rates. Contact the bank to know more.

    Home equity loan:

    SIBOR pegged loans (home equity loan) interest rates:

    Loan Tenure HSBC Premier Customers HSBC Advance Customers HSBC Personal Banking Customers
    First to third year SIBOR + 0.90% p.a. SIBOR + 0.95% p.a. SIBOR + 1.10% p.a.
    Thereafter SIBOR + 1.10% p.a. SIBOR + 1.10% p.a. SIBOR + 1.10% p.a.

    HSBC Home Loan Fees and Charges

    Product/Item Fees and Charges
    Processing fee S$400
    Variation fee S$200 per variation of facility
    Retrieving of documents and statements S$32.10 for each copy
    Retrieving valuation reports S$53.50 for each copy
    Rescheduling your redemption date S$200 for each request
    Fee for safekeeping your title deed after your loan has been repaid fully S$428 per year


    HSBC Home Loans for Foreigners

    Foreigners are eligible to apply for HSBC home loans if they have a valid Employment Pass (EP). Foreigners who wish to buy a property in Singapore can also apply for Premier Privileges.

    HSBC Premier International:

    With an HSBC Premier International relationship with the bank, your home loan needs can be easily met with perks including a dedicated relationship manager who speaks your local language.

    HSBC Housing Loan Eligibility

    The following are the eligibility criteria to apply for HSBC home loans:

    • The minimum loan you can take for HDB flats and private properties is S$200,000.
    • You have to take at least S$300,000 as loan for commercial property.
    • The maximum loan tenure for HDB flats is 30 years.
    • The maximum loan tenure for private properties is 35 years.
    • In case of refinancing, the number of years since the home loan was approved + the sum of the loan tenure is capped at 30 years for HDB flats and 35 years for private properties.

    Documents Required for HSBC Home Loan

    Here are the documents that need to be submitted to apply for an HSBC home loan:

    • The HSBC “Property Loan Application Form” fully completed.
    • A copy of NRIC or Passport. Foreigners must also submit a copy of their Employment Pass.
    • Most recent Income Tax NOA (Notice of Assessment).
    • Salaried employees must submit their computerized payslips.
    • Singapore citizens and Permanent Residents must submit their CPF Contribution History Statements.
    • In case of a new purchase, Sales & Purchase Agreement or Option to Purchase Agreement must be submitted.
    • In case of refinancing, the loan account statement for the past 12 months should be submitted.
    • Bank statements for current unsecured and secured credit facilities with other banks should be submitted.
    • Proof of other assets/income should be submitted, if applicable.

    Any other documents may be requested by the bank when processing your home loan application.

    How to Apply for HSBC Home Loans

    If you wish to apply for a home loan with HSBC, visit the HSBC Singapore website and navigate to their Home Loans webpage. On this webpage, you can either click on the “Contact me” option or the “Have someone call me” option. You will be redirected to the “Home Loans Contact Us” form where you have to provide the following information:

    • Choose an enquiry topic from the dropdown options.
    • Provide your personal information including your name, NRIC/Passport number, your contact number and your email address.

    Submit this online form and a bank representative will contact you to get your home loan application process started.

    HSBC Housing Loan Repayment

    • Tenures available:
      • For purchase of new properties – Up to 30 years for HDB flats and 35 years for private properties.
      • For refinancing – Number of years since existing home loan was approved + sum of your loan tenure up to 30 years for HDB flats and 35 years for private properties.
    • Modes of repayment – Your monthly instalment will be debited on your due date from your HSBC loan servicing account. In case you want to use your CPF savings to pay for your home loan, you must request your lawyer to open a CPF remittance arrangement to pay your monthly instalments.
    • Prepayment – You may make partial or full prepayment of your HSBC home loan. For further information on prepayment, please refer your Facility Letter and Standard Terms.
    • Any extra charges for early repayment – Maybe applicable according to the Standard Terms.
    • Possibility of part payment – Yes.

    HSBC Home Loan Refinance

    You can choose to refinance your existing home loan with HSBC and choose from fixed rate, SIBOR-pegged rates and Smart Mortgage interest rate packages.

    HSBC Housing Loan Privileges

    HSBC Premier Privileges

    HSBC Premier Customers can qualify for any home loan if they avail a minimum loan amount of S$800,000. Foreigners investing on a home in Singapore can also take a HSBC home loan and enjoy various privileges as Premier International customers. Premier banking customers can get preferential interest rates from HSBC with discounts on interest rates for a particular home loan package.

    HSBC Advance Privileges

    Individuals can qualify as HSBC Advance customers with a minimum home loan amount of S$200,000. HSBC Advance offers discounted interest rates, personalized customer service, rewards and preferential pricing on various products.

    Frequently Asked Questions

    1. What is the purpose for availing HSBC Home Loan?

      HSBC home loan can be availed for:

      • Purchase of a new property – completed or still under construction
      • Re-financing – for the benefit of more pocket-friendly interest rates
      • Construction loan – building your dream home or renovating your existing home
      • Purchase of a commercial property – building a property for your business or renovating an existing commercial property
      • Home Equity Loan – funding your additional needs through an existing home loan
    2. What is the minimum amount I can avail for HSBC Home Loan?

      The minimum loan amount limit for private property and HDB flat is S$200,000. The minimum loan amount limit for commercial property, is S$300,000

    3. Which home loan package is the best for me?

      The loan features vary for every applicant as per their unique financing needs. You can contact HSBC Mortgage Specialists in order to choose from various home loan packages with different customizable options.

    4. What is the maximum tenor for HSBC Home Loan?

      The maximum home loan tenor is 35 years for private properties and 30 years for HDB flats, as per the age and other eligibility factors of the borrower.

    5. How will I repay my monthly installments for HSBC Home Loan?

      The bank would automatically debit the monthly installment on the fixed due date every month from the loan servicing account of the borrower.

    6. Do I have to open an account with HSBC to apply for a home loan?

      Yes. The bank requires you to open an account a minimum of 2 weeks before requesting your first drawdown. Also, if you choose a Smart Mortgage home loan, you must open a Smart Mortgage account.

    7. Is there a minimum partial repayment amount if I wish to make a partial repayment on my home loan?

      Yes. The minimum partial repayment amount is S$10,000. If you wish to make a partial repayment of over S$10,000, the remaining amount should be in multiples of S$1,000.

    8. How much notice do I need to give the bank if I wish to make an early repayment on my home loan?

      In case of partial repayment, you must give the bank a written notice at least one month in advance or pay the bank one month’s interest on the amount that they would have received if you had given the bank one-month notice.    In case of full prepayment, you must give the bank a written notice at least 3 months in advance or pay the bank 3 months’ interest on the amount that they would have received if you had given the bank 3 months’ notice.

    9. If I give the bank a written notice for full repayment, can I later change it to partial repayment of my loan?

      No. Once you have given the bank a written notice for a full repayment on your loan, you will not be allowed to change to partial repayment.

    10. Are there any administration charges applicable when I apply for a home loan with HSBC?

      Administration charges will be applicable every time you choose to convert your existing property loan to a different property loan package with HSBC. This amount will be determined by the bank at its discretion. 

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