HSBC Home Loan
Compare HSBC home loans against offers from other leading home loan providers in Singapore
About the provider
The Hong Kong and Shanghai Banking Corp. Ltd., now known as HSBC Bank, opened in Hong Kong in March 1865 and 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 business, as well as forfeiting and trustee services; insurance; retail banking and wealth management; and securities and capital markets services.
Why should I choose HSBC home loan?
HSBC offers its SmartMortgage features that link your home loan to a current account while reducing your interest charge. This is made possible by offsetting the interest earned by your existing account. The SmartMortgage feature is simple and effective in reducing the interest charges payable on your mortgage.
Upon approval of the loan, you can also choose between lock-in and no lock-in packages, customiSed rates and complimentary services that come with your home loan.
What benefits does an HSBC home loan provide?
As one of the leading 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 customiSed according to desired interest rate terms: fixed interest rates, variable interest rates, SIBOR-pegged interest rates, and SmartMortgage. The investment also has other custom options for specific conditions, 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 crisis 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 opportunity to get lower interest rates for one to three years, in exchange for additional stipulations for selling a 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 by properties under construction, the additional rate is continuously at 1.50%.
How do I apply for an HSBC home loan?
HSBC home loan has a loan tenor of 35 years for private properties and 30 years for HDB flats. This depends on the age of the borrower. You can also prepare the following documents to facilitate your application:
- Copy of NRIC or Passport
- Foreigners should submit their Employment Pass
- Copy of the Latest Notice of Assessment
- Salaried applicants should submit computerised pay slips
- Proof of income and other assets
- Bank statements
- Purchase Agreement
- Loan account statement for the last twelve months if applying for refinancing.
What other products does HSBC offer?
HSBC also offers other facilities like:
- Personal loan – You can apply for loans of up to 8 times your monthly salary with fixed monthly repayments. Loan tenors can last up to 7 years wherein you can redraw on your existing personal loans without processing fees.
- Debt consolidation – HSBC debt consolidation plans come with an equivalent flat interest rate at 4.7% for 1-7 years of tenor and 5.9% for loans of 8-10 years. Upon application of debt consolidation plans, a cancellation will not be allowed, and all existing unsecured credit facilities will be closed or suspended.
- Credit cards – HSBC credit cards provide a lot of privileges covering health and beauty, movie and entertainment, petrol, travel and dining.