A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • Home Loan BYTES FROM OUR KITCHEN

    HSBC Home Loans : Zero Lock-In Period and Higher Savings on Interest

    Dreaming of owning a house, but don’t know how to get your finances in order? HSBC may have a solution for you. You can apply for a home loan with this bank and enjoy extensive benefits and high interest savings. The home loans come without any lock-in period, which means you can sell your property at any point of time.

    HSBC offers a choice of fixed and variable interest rate packages on their home loans. The bank also offers the SmartMortgage feature, where the home loan account will be linked to your current account and the interest earned on the current account will be used to offset your home loan repayments. This way, you can save on interest and manage your finances better.

    What are the Types of HSBC Home Loans?

    HSBC provides the following home loan options to its customers:

    • HSBC Home Loans: With these loans, you can choose from a SIBOR-pegged package, a Time Deposit-pegged package, or a fixed rate package. The bank offers a zero lock-in period, where you can sell your property at any point of time without any penalty. You also have the flexibility to combine and customise interest rate packages. The SmartMortgage feature is available on this loan.
    • Home Equity Loan: Need cash to make investments or capture business opportunities? The HSBC Home Equity Loan will help you achieve those goals by loaning you a certain sum against your property. This is a secured loan and you need to pledge your property to borrow from the bank. You can choose from either a SIBOR-pegged interest rate package or a fixed rate package. With the variable interest rate package, you can enjoy a cash incentive of up to S$2,000. The SmartMortgage feature is also available. feature is also available for you.
    • HSBC Investment Property Loan: If you are interested to purchase a plot to build your office or refinance your existing commercial property loan, then this loan can be ideal for you. This property loan gives you the option to choose the interest rates from either a SIBOR-linked package or a fixed rate package. This loan also comes with the SmartMortgage facility, where you can save on interest.
    • Refinancing Home Loan: Refinance your existing home loan with the bank and save on your monthly repayments. You can choose from a SIBOR-linked interest rate package or a fixed rate package. With the SIBOR-pegged package, you can enjoy a zero lock-in period and sell your property at any time without paying a penalty. You can also make use of the the SmartMortgage feature to increase your savings.

    Interest Rates Applicable on These Home Loans

    The tables below show the interest rates applicable on these loans:

    HSBC Home Loan

    SIBOR-pegged interest rate

    Tenures HSBC Personal Banking HSBC Premier Banking HSBC Advance Banking
    1 year to 3 years SIBOR + 1% p.a. SIBOR + 0.8% p.a. SIBOR + 0.85% p.a.
    Thereafter SIBOR + 1% p.a. SIBOR + 1% p.a. SIBOR + 1% p.a.

    SIBOR-pegged SmartMortgage interest rate

    HSBC Premier and Advance Banking customers can enjoy these rates where your home loan account will be linked to your current account and the interest earned on the current account will be used to offset the interest payable on your home loan.

    Tenure HSBC Premier Banking HSBC Advance Banking
    1 year to 3 years SIBOR + 0.8% p.a. SIBOR + 0.85% p.a.
    Thereafter SIBOR + 1% p.a. SIBOR + 1% p.a.

    TDMR-pegged interest rate

    Tenure Interest rates
    1 year to 3 years 2.68% p.a. (TDMR24 + 2.03%)
    Thereafter 2.68% p.a. (TDMR24 + 2.03%)

    *Note: Currently, the TDMR is 0.65% p.a.

    HSBC Home Equity Loan

    SIBOR-pegged interest rate

    Tenures HSBC Personal Banking HSBC Premier Banking HSBC Advance Banking
    1 year to 3 years SIBOR + 1.1% p.a. SIBOR + 0.9% p.a. SIBOR + 0.95% p.a.
    Thereafter SIBOR + 1.1% p.a. SIBOR + 1.1% p.a. SIBOR + 1.1% p.a.

    HSBC Investment Property Loan

    SIBOR-pegged interest rate

    Tenures HSBC Premier Banking HSBC Advance Banking
    1 year to 2 years SIBOR + 1.45% p.a. SIBOR + 1.5% p.a.
    Thereafter SIBOR + 3% p.a. SIBOR + 3% p.a.

    Refinancing Home Loan

    SIBOR-pegged interest rate for home loans

    Tenures HSBC Personal Banking HSBC Premier Banking HSBC Advance Banking
    1 year to 3 years SIBOR + 1% p.a. SIBOR + 0.8% p.a. SIBOR + 0.85% p.a.
    Thereafter SIBOR + 1% p.a. SIBOR + 1% p.a. SIBOR + 1% p.a.

    SIBOR-pegged interest rate for home equity loans

    Tenures HSBC Personal Banking HSBC Premier Banking HSBC Advance Banking
    1 year to 3 years SIBOR + 1.1% p.a. SIBOR + 0.9% p.a. SIBOR + 0.95% p.a.
    Thereafter SIBOR + 1.1% p.a. SIBOR + 1.1% p.a. SIBOR + 1.1% p.a.

    SIBOR-pegged SmartMortgage

    Tenures HSBC Premier Banking HSBC Advance Banking
    1 year to 3 years SIBOR + 0.8% p.a. SIBOR + 0.85% p.a.
    Thereafter SIBOR + 1% p.a. SIBOR + 1% p.a.

    Fixed Interest Rate for all HSBC Home Loans

    Pay fixed interest rates for the initial 2 years or 3 years. Subsequently, the interest will be pegged to 1-month or 3-months SIBOR. Get in touch with the bank to know the most recent interest rates and their Mortage Specialist will call you back.

    Why Should You Take HSBC Home Loans?

    Through HSBC home loans, you have the flexibility to customise interest rate packages either with no lock-in period or lock-in period for up to 3 years. Without a lock-in period, you can sell your property whenever you deem fit without paying any penalty charges. If you select a lock-in period, you can enjoy lower interest rates.

    You can use your CPF savings to pay off a part of the housing loan. However, there is a cap on the amount you can use from your CPF savings in case of bank financing. This cap is called the CPF Withdrawal Limit and is usually 120% of the Valuation Limit of the property.

    The interest rates of these home loans are pegged to 1-month or 3-month SIBOR. This means that the rates may vary according to market fluctuations and other business conditions. However, this package comes with a zero lock-in feature. If you are not too comfortable with variable interest rates, you can always go for a fixed rate package for the initial period of the tenure. You can even choose to customise the interest rate packages.

    The home loans also offer SmartMortgage packages, where you can link your home loan account to your current account. This way, the interest earned on the current account can be used to offset the home loan interest. Hence, you will be able to save more on interest and pay off the loan faster.

    The Home Assist facility provides you with free access to an all-day home assistance relating to emergencies such as air-conditioning, electrical, locksmith, plumbing, and pest control. The bank will also handle your repair bills and reimburse up to S$150 for each visit (maximum 5 visits per year).

    Fees and Charges You Will Have to Pay

    The table below shows the fees and charges applicable on these loans:

    Processing fee S$400
    Variation fee S$200 for each variation of facility
    Recovering valuation reports S$53.50 for each copy
    Recovering documents and statements S$32.10 for each copy
    Rescheduling redemption date S$200/request
    Protection fee for title deed S$428 each year

    What are the Eligibility Criteria for These Home Loans?

    To apply for an HSBC home loan, you must satisfy the following criteria:

    • You can be a Singaporean, a Permanent Resident, or a foreigner.
    • You must be between the ages of 21 and 65 years.
    • You must earn at least S$30,000 per month for a private property or S$24,000 per month for an HDB flat.
    • You must open a SmartMortgage account with the bank to enjoy the SmartMortgage facility.

    What Documents do I Need to Submit?

    You need to submit the following documents:

    • The application forms duly completed and signed.
    • NRIC/passport.
    • Employment pass for foreigners.
    • Most recent computerised salary slip.
    • Latest income tax Notice of Assessment (NOA).
    • CPF contribution statement.
    • Option to Purchase.
    • In case of refinancing:
      • Most recent Approved Housing Scheme Statement or Approved Residential Properties Scheme (RPS).
      • Home loan statement for the past six months.
    • In case selling property:
      • Most recent Approved Housing Scheme Statement or Approved Residential Properties Scheme (RPS).
      • Sale & Purchase documents of the existing property.

    How to Apply for HSBC Home Loans

    To apply for a home loan, you can visit the nearest branch or call on the hotline number. Alternatively, you can leave your details online with HSBC and a specialist will get in touch with you as soon as possible.

    Answers to Frequently Asked Questions

    Q. How much am I allowed to borrow from the bank?

    A. HSBC will allow you to borrow from 80% to 90% of the purchase price of the property, whichever is lower.

    Q. What is the maximum loan tenure for these home loans?

    A. You can take a home loan from this bank for up to 35 years for a private property and up to 30 years for an HDB flat. You can even choose to pay your monthly instalments till the age of 65.

    Q. How do I repay the home loan?

    A. Every month, the instalment amount will get debited from your loan servicing account. If you plan to repay the loan using your CPF savings, then you need to ask your lawyer to set up the CPF remittance agreement.

    Q. Can I make prepayments or partial repayments for my loan?

    A. Yes, you can make prepayments or pay partially. However, you must notify the bank in writing within 3 months for partial repayments as per the conditions stated in the Letter of Offer. Or else, you may have to pay an interest if you do not send notice.

    Q. What is the process of making prepayments?

    A. You can make prepayments via cash or your CPF savings. Depending on the terms in your Letter of Offer, you will be required to provide the bank with a written notice 1 or 3 months prior to making your partial prepayment. If you fail to the inform the bank within this stipulated time, you will be charged additional interest for your prepayment.

    If you want to use your CPF savings to make prepayments, you must download and fill up CPF Form 4B (private properties) or HBL3 (HDB) and submit it to the bank for endorsement.

    If you’re making a prepayment via cash, you will have to maintain the required funds for prepayment in your loan servicing account by the prepayment due date.

    Q. What is the minimum amount I can prepay?

    A. The minimum amount you can prepay for your home loan is S$10,000.

    Q. Can I change my monthly instalment amount?

    A. Yes, you can change the monthly instalment amount. However, you must seek permission from the bank. Send your request to HSBC along with your account number and details of the changes to be made.

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