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HSBC Home Loans

HSBC Home Loans
(Product Review)

Updated September 29, 2022

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Product Review

One of the globally recognised banking institutions: the Hong Kong and Shanghai Banking Corporation (popularly called HSBC) is also an active stakeholder in Singapore’s lending industry. According to its records, HSBC had outstanding home loans worth S$7.7 billion in the country and is one of the most famous house lending services in Singapore. HSBC bank offerings are among the best because of their relatively affordable home loan interest rates. Its total interest cost and other regular interest rates are reasonable to the average borrowers.

HSBC has a variety of products and services available to the community in Singapore. It provides various loans, mortgages, savings packages, investment plans and credit cards to Singaporeans. Citizens of Singapore are advised to visit the bank branch to learn more about these services and gain access to them. HSBC also features Smart Mortgage, the interest-offset account which provides low but steady income to verified homeowners that they can use to quickly refund their loans.
Individuals interested in loans with accessible total interest costs are advised to consider this bank while those searching for home loans with frequent refinancing may find HSBC unsuitable for their needs. One of the features of this bank includes interest offset accounts for individuals seeking novel ways to reduce their total home loan rates.

The home loan system of HSBC has established a reputation for providing different loan charges which include fixed rates, SIBOR-pegged mortgage rates and time deposit-pegged home loan rates to interested customers. According to its report, subscribers of their home loans have the opportunity to save more with their HSBC 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 their business marketing strategy seems to focus on established organisations and individuals of affluence, their regular home loans can hold their ground against other local merchant banks in Singapore. This signifies their commitment to the property mortgaging industry and their interest in HDBs and private properties.

They have a forward-thinking home loan package called Smart Mortgage. It is essentially a home loaning system 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 conveniently choose a satisfactory rate among fixed-rate, rates connected to the SIBOR benchmark and time deposit-pegged mortgage rate (TDMR).

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.

Loan Type Partial Repayment fee Full Redemption Pinalty Cancellation Fee
Completed Homes 1.5% 1.5% 1.5%
Buildings Under Construction N/A N/A 1.5%

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.

Bank 1st Year Interest Lock-in Period
HSBC 3M SORA Check Live Rates 2 Years
HSBC 1M SORA Check Live Rates 2 Years

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.

Bank 1st Year Interest Lock-in Period
No offerings at this time

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.

Bank 1st Year Interest Lock-in Period
HSBC Greenmark SORA Check Live Rates 2 Years
HSBC 3M SORA Check Live Rates 2 Years
HSBC 1M SORA Check Live Rates 2 Years
HSBC Greenmark Fixed Check Live Rates 2 Years
HSBC Greenmark Fixed Check Live Rates 2 Years

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.

Bank 1st Year Interest Lock-in Period
HSBC Greenmark SORA Check Live Rates 0
HSBC 3M SORA Check Live Rates 0
HSBC Greenmark SORA Check Live Rates 0
HSBC 1M SORA Check Live Rates 0

 

PROMOTIONS

APPLICATION PROCESS

  • Launch Application via the ROSHI Marketplace

    Once your application is live you will be able to review suitable loan options on your dashboard. One of our mortgage brokers will follow up with you to discuss the best available options and next steps.

  • Choose Suitable Mortgage Option

    After you’ve decided on a preferred mortgage option one of our mortgage brokers will help process your application.

  • Settle Fees & Charges

    Settle all fees (option fee, option exercise fee to the seller as well as the relevant buyer’s stamp duty fee in case you are purchasing a private property).

  • Appointment Date & Signing

    Attent your property purchase appointment date and sign all legal documents for the transfer of the property, paying all legal and valuation fees.

PRODUCT HIGHLIGHTS

  • Low total mortgage costs

    Appropriate for Individuals interested in home loans with reasonable total loan costs.

  • Low Interest Rates

    Suitable for Borrowers seeking some of the lowest interest rates available

  • Interest-Offset Account

    Ideal for Individuals who prefer an interest-offset account for their private home loans

  • Lower Refinance Loans

    Unsatisfactory for borrowers planning to refinance loans of less than S$500,000

Important Components of HSBC Loans

  • Affordable total home loan costs with impressive rates
  • Legal Fee Subsidies: S$2,000 (for loans of at least S$500,000)
  • Minimum principal loan: S$200,000
  • Outstanding housing loans in Singapore: S$7.7 billion

EXTERNAL REVIEWS

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