HSBC Home Loans
(Product Review)

Product Review

The Hong Kong and Shanghai Banking Corporation (HSBC), a globally recognised banking institution, with outstanding home loans worth S$7.7 billion the bank is an active stakeholder in Singapore’s lending industry. Its reputation as one of the most lending providers in Singapore is well-deserved, given its relatively affordable home loan interest rates.

HSBC offers a range of products and services in Singapore, including loans, mortgages, savings packages, investment plans and credit cards. One of HSBC’s notable offerings is Smart Mortgage, an interest-offset account that provides low but steady income to verified homeowners, which they can use to quickly refund their loans.

For individuals interested in loans with accessible total interest costs, HSBC is an excellent option. Its total interest cost and other regular interest rates are reasonable for the average borrower. However, those searching for home loans with frequent refinancing may find HSBC unsuitable for their needs.

One of the features of HSBC’s home loan services is the interest offset accounts for individuals seeking novel ways to reduce their total home loan rates. HSBC has established a reputation for providing different loan charges, including fixed rates, SIBOR-pegged mortgage rates, and time deposit-pegged home loan rates to interested customers.

Borrowers of HSBC home loans have the opportunity to save more with their Smart Mortgage programme. The bank also offers special bonuses, privileges and premium benefits to its esteemed clients in Singapore. All these delightful features and many more are available to HSBC registered homeowners.

Although HSBC’s business marketing strategy seems to focus on established organizations and individuals of affluence, its regular home loans can hold their ground against other local merchant banks in Singapore. This signifies the bank’s commitment to the property mortgaging industry and its interest in HDBs and private properties.

HSBC’s Smart Mortgage product is a forward-thinking home loan package that allows borrowers to cover their mortgage rates with interest received from the linked deposit accounts of the loan subscribers. The interest rate structure set up in the Smart Mortgage programme enables prospective home buyers and current homeowners to conveniently choose a satisfactory rate among fixed-rate, rates connected to the SIBOR benchmark and time deposit-pegged mortgage rate (TDMR).

Whether you are a prospective homebuyer or a current homeowner, HSBC’s Smart Mortgage programme may be an excellent option for you to consider.

HSBC’s Applicable Mortgage Fees

Similar to standard banks registered in Singapore, HSBC demands certain service fees like partial repayment, complete recovery and termination penalties for its home loans. These fees have similar prices to other Singaporean banks. The full details of each charge are listed in the table below.

HSBC HDB Home Loans

As a rule, HSBC tends to offer low and attractive interest rates for HDBs housing loans. In April 2018, its floating rates were slightly better than its fixed rate. However, before that time, the bank offerings for both rates appealed to borrowers. Hence, it is essential to compare the current rates of several banks you are considering before choosing a home loan. Check the live rates of HSBC’s current interest rates for HDB loans in the table below.

Fixed rates should be considered when the market rates are expected to rise while floating rates should be applied when market analysts are expecting a decline in the charts. Floating rates are connected to the recently initiated SORA benchmark which is regulated by the Monetary Authority of Singapore (MAS). Singapore Interbank Offered Rate (SIBOR) has been recently updated to Overnight Rate Average (SORA). So SIBOR-pegged rates are no longer applicable in the banks.

HSBC also has lovely BTO housing loans that are available to interested parties. Since you must compare the interest rates and total loan cost before applying for a loan – HSBC displays its current HDB loan offerings for units under construction.

HSBC Private Property Home Loans

Apart from its low-interest rates for HDB loans, HSBC also makes provisions for private property loans that are relatively cheap. Before April 2018, HSBC fixed interest rates and floating interest rates were both affordable to borrowers. However, the floating rates improved and became cheaper than their alternative in April. Therefore, it is important to compare the current rates of each bank that meets your requirements before applying. The table below provides a reference for HSBC’s current private housing loan rates.

Private properties under construction are not left out of HSBC’s mortgaging services. It presents home loan rates that can be easily managed for these housing units. The table below shows the live rates of these loans.