HSBC Home Loan Review: Is It the Best Home Loan Package in Singapore?

HSBC Home Loan Review: Is It the Best Home Loan Package in Singapore?

Pros Cons
  • Wide range of loan packages
  • Lowest interest rates available in Singapore 
  • Seek interest offsetting
  • Online Monitoring
  • Cannot fully apply online
  • Inapplicable for those looking to refinance lower than SGD 200,000

Editor’s Rating: 4.5/5.0 Stars

If you are looking for stability to settle and buy your dream home to fully experience life right here in Singapore or purchase that commercial property for your start-up business while not causing a dent in your life savings or deposit account, then maybe you might want to check out the top home loans offered by HSBC for individuals that is well within the use of your rights.

HSBC, or the Hongkong and Shanghai Banking Corporation is the largest and best bank in Hongkong and operates here in Singapore and around the globe. It is also one of Singapore’s largest home loans lender as they offer cheaper loan packages than other top bank.

If a flexible, offsetting, and cheap home loan package that will best suit your preference, necessities and current financial status is what you are looking for, you should keep reading for help because HSBC’s Home Loans might be the best home loan package that will fit the bill, literally and figuratively.

 

The Features and Benefits of HSBC Home Loans

So what are the content, features and benefits of applying for an HSBC home loan packages? As it offers fully customizable and flexible loan term and conditions, here are a few benefits and features that will surely separate HSBC from other bank loans:

1. HSBC’s SmartMortgage

HSBC, unlike other bank, also offers SmartMortgage. HSBC’s SmartMortgage will link your home loan to any of your current accounts. Smart Mortgage will then offset the interest payable in your home loan amount using the interest earned in your checking account.

With this feature, you will be able to save more money in paying your home loans while doing it in less time. Also, Smart Mortgage will give you a lot of room in taking control of both the management of the contents of your finances and your very own savings accounts.

2. Picking your own Interest Rate Packages

Choose your own interest rate package applicable to your necessities from three interest rates packages available or even combine fixed with SIBOR-pegged (Singapore Interbank Offered Rate) interest packages.

  • SIBOR-pegged interest rates.
  • Fixed interest rates.
  • Time Deposit Mortgage interest rates.

Not only will you be able to pick the interest rates that will suit you, you may also be eligible for exclusive privileges!

3. Exclusive Privileges

There are two types of HSBC privilege holders, Premiere and Advance. Tons of benefits come with both but each one has a certain requirement to be able to take part of.

Premiere holders will enjoy exclusive international banking solutions, educational supports here and abroad and exclusive benefits and rewards for you and your family.

Premiere however will require you to either have a total relationship balance with HSBC of SGD 200,000 or more (or its equivalent in foreign currency), credit a monthly salary of SGD 15,000 or more, a Singaporean property worth SGD 800,000 or an Australian property worth AUD 200,000.

Advance on the other hand will hook you up with up to 3.5% cashback with this bank’s Advance credit card, personalized financial review with their advance wealth managers.

Advance will require you to have at least a total relationship balance of SGD 30,000 in deposits, investments, and/or insurance within at least 6 months and other methods.

 

Types of HSBC’s Home Loan

There are three types of Home Loans that HSBC is currently offering. These are HDB/Private Home Loans, Investment Property Loan, and Refinancing Home Loans. These type of loans will allow you to purchase a private residential property, a Housing Development Board residential property, or a commercial property.

1. HSBC’s HDB/Private Home Loans

For construction or purchase of an HDB flat and private property home loans, the minimum loan amount is at SGD 200, 000. If you are looking to finance the construction of your dream HDB flat easily and in terms that will suit your preference and current finances, or just purchase the best fitting properties for yourself, this might be the best home loan to apply for.

Interest Rates and Fees

Singapore Interbank Offered Rate of Loans:

 SIBOR Pegged Loan Year 1-3 Thereafter
 Interest Rate 1M SIBOR + 1.80% p.a. 1M SIBOR + 1.80% p.a.

Fixed Rate of Loans:

You can leave your contact details in the HSBC website so that their Mortgage Specialists may be able to get in touch with you to update you on the latest fixed rate packages and avoid miscalculations.

2. HSBC’s Investment Property Loan

If you are planning to either purchase or begin the construction of a commercial property or refinances your current place of commerce, HSBC commercial loan might just feed your necessities as they offer competitive rates

Interest Rates and Fees

Singapore Interbank Offered Rate of Loan:

Two Year Lock In Year 1-2 Thereafter
Premier 1M SIBOR + 1.45% p.a. 1M SIBOR + 3.00% p.a.
Advance 1M SIBOR + 1.50% p.a. SIBOR + 3.00% p.a.

Fixed Rate of Loans:

You can leave your contact detail in the HSBC site so that their Mortgage Specialist may be able to get in touch with you to update you on the latest fixed rate packages and avoid miscalculations.

3. HSBC’s Refinancing Home Loans

Whether you are consolidating debt, juggling financial responsibilities or just plainly taking advantage of new refinance offers and fixing your life, HSBC’s home loan refinance might be the one just to fill your necessities and push the right button.

You can also apply for a refinance in your existing home loan to save up and receive as much as up to SGD 2,500 cash incentive.

Interest Rates and Fees

SIBOR Rate Loan:

 Package Year 1-3 Thereafter
 SIBOR pegged housing loans SIBOR + 1.80% p.a. SIBOR + 1.80% p.a.
 SIBOR pegged home equity SIBOR + 1.90% p.a. SIBOR + 1.90% p.a.

Fixed Rate Loans:

You can leave your contact detail in the HSBC site so that their Mortgage Specialist may be able to get in touch with you to update you on the latest fixed rate packages and avoid miscalculations.

 

Other Charges and Fees

HSBC maybe different from other bank, but it still is a financial institution that needs to earn. The bank charges for full redemption, partial repayment, and cancellation fees.

Home Type Full Redemption Penalty Partial Repayment Fee Cancellation Fee
Completed House 1.5% 1.5% 1.5%
Buildings Under Construction none none 1.5%

 

How Does HSBC’s Home Loan Compare With Other Banks?

HSBC vs other banks in HDB Home Loan and Refinance:

BANK HSBC HONG LEONG FINANCE DBS Maybank
Lock in 3 Years 2 Years 5 Years 5 Years
1 Year 1.450% (Fixed) 1.450% (Fixed) 1.500% (Fixed) 1.500% (Fixed)
2 Years 1.450% (Fixed) 1.450% (Fixed) 1.500% (Fixed) 1.500% (Fixed)
3 Years 1.450% (Fixed) 1.750% (Board) 1.500% (Fixed) 1.500% (Fixed)
4 Years 1.500% (1M SIBOR + 1.250%) 2.200% (Board) 1.500% (Fixed) 1.500% (Fixed)
5 Years 1.500% (1M SIBOR+ 1.250%) 2.200% (Board) 1.500% (Fixed) 1.500% (Fixed)
Thereafter 1.500% (1M SIBOR+ 1.250%) 2.200% (Board) 1.800% (FHR24+0.900%) 2.750% (Board)
Refinance >$200k – 1k cash rebate

>$500k – 2k cash rebate

>$1.5mil – 2.5k cash rebate
$200k minimum – 1k cash rebate ≥$250k – 2k cash rebate 0.4% of loan amount (capped @2k)

>$1mil – 2.5k cash rebate
Minimum Loan $800,000 $100,000 $100,000 $100,000

 

What Makes HSBC’s Loan Services Stand Out to Prospective Homeowners?

This bank provides enticing home loan rates, highly flexible interest rates and interest payments, and even advantageous lock in periods. The best home rates of loan provided by this bank will surely give an edge over some but as it is, there are many other different bank in Singapore like Citibank, OCBC, Maybank, Standard Chartered, and DBS that may be able to provide you with much more home packages for loan that will definitely fit your necessities and preferences.

With all the bills payable by people especially Singaporeans, there are many credit card providers that also provide home financing or loan in Singapore such as Citibank, OCBC, Standard Chartered, and DBS. HSBC maybe able to outshine these banks depending on your chosen property type, money status, and loan range.

 

Eligibility and Requirements

For private property loans, you can borrow up to a maximum time period of 35 years while 30 years is the maximum time period for Home Development Board (HDB) flats.

The sum of the loan tenor and the number of years since the first residential loan was granted for purchase is capped at 35 and 30 years for the refinance of both private and HDB properties respectively.

 

How to Apply for an HSBC’s Home Loan

You can easily apply for the loan of your home here in Singapore so as to not mess with your savings accounts and other life savings accounts via their site.

The documents that will be required for an HSBC home loans application are as follows:

  • A fulfilled HSBC Property Loan Application Form
  • A copy of NRIC/Passport
  • Employment Pass (for foreigners)
  • Latest notice of assessment
  • Computerized pay slips (for salaried applicants)
  • CPF contribution history (for Singaporean/permanent resident)
  • Proof of other income or assets (if applicable)
  • Bank statements for existing secured and unsecured credit facilities held with other banks (if applicable)
  • Option to purchase or sale and purchase agreement (for new purchase)
  • Loan account statement for the last twelve months (for refinance)

The bank may also request for additional documents and requirements as they see fit anytime during the process of your loan application.

 

Conclusion

When all is said and done, the only way this review will impact your decision on applying for the loan of your dream home here in Singapore depends on your credit cards, board rates, lock in period, your preference of best home for you, or even your travel insurance car and your health insurance and covid.

The point is, there are tons of reasons and factors to consider when getting this big of a loan and it is only correct to check out different reviews of different bank such as Citibank, OCBC, Standard Chartered, DBS, etc.

Always get an overview review of every financial institution you want to be partnered with in the construction of your best home and always ask the best questions.

Go check out www.loanadvisor.sg for more input when it comes to loan reviews in Singapore.

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