HSBC Home Loan
About HSBC home loan
The Hongkong and Shanghai Banking Corp. Ltd., now known as HSBC Bank, opened in Hong Kong in March 1865 and in Shanghai one month later. Since then, the bank has expanded to 71 countries, with 4,400 offices serving more than 45 million customers, including millions in Singapore, where HSBC offers products such as home loans, mortgage loan products, credit cards, loans, savings accounts, and others.
HSBC launched its first branch in Singapore in 1877, at the Collyer Quay site where its headquarters currently stand. Banking and financial services of HSBC Bank include commercial, investment and private banking, as well as forfaiting and trustee services; insurance; retail banking and wealth management; and securities and capital markets services.
HSBC home loan
As one of the main types of HSBC loans, the bank’s home loan allows you to borrow money from HSBC to buy a new property, refinance an existing home loan, purchase property for commercial use, or get a home equity loan.
An HSBC home loan can be customized according to desired interest rate terms: fixed interest rates, variable interest rates, SIBOR-pegged interest rates, and SmartMortgage. The loan also has other custom options for specific terms, alongside other features.
Regardless of which terms of HSBC home loan rates are selected, all loans come with the HSBC Home Assist service, which gives clients complimentary access to 24-hour emergency home assistance. The service covers air-conditioning, electrical, locksmith, pest control, and plumbing emergencies. Through this service, HSBC Bank will reimburse up to S$150 per emergency for up to five times a year.
The loans can also be secured with or without a lock-in period, depending on that the borrower wants. A no lock-in option will allow a borrower to sell his property anytime, with no penalties or fees. However, the lock-in option grants HSBC loan clients the option to get lower interest rates for one to three years, in exchange for additional stipulations for selling property within the lock-in period.
Fixed and variable interest rate loans
People who will get home loans from HSBC can opt to secure the loan with fixed-term or variable interest rates. The fixed-interest option is for HSBC bank clients who want stability in their payments, while the variable-interest option is for people who want to take advantage of the possibility of lowering interest rates. A mortgage specialist will provide the specifics of interest rates for these loans.
For this option, the interest rate is pegged to the SIBOR, or the Singapore Interbank Offered Rate, plus a set percentage rate. SIBOR is a daily reference rate that fluctuates based on the interest rates that banks like HSBC Bank set when they lend unsecured funds to other banks in the Singapore wholesale money market.
This HSBC home loan stipulation has no lock-in conditions. The additional percentage rate options for new purchase or refinancing loans are 1.15%, 1.20%, and 1.50%, while the options for home equity loans are 1.30%, 1.35%, and 1.50%. For home loans secured for properties under construction, the additional rate is constantly at 1.50%.
This HSBC mortgage option ties a home loan account with a current account. Via this option, a certain amount of interest earned on the current account will be transferred to the home loan, effectively reducing the loan’s interest.
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