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HSBC Refinancing Loans

HSBC Refinancing Loans
(Product Review)

Updated September 29, 2022

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Product Review

HSBC is one of the prominent and globally acknowledged banks. This renowned bank has a branch in Singapore and is known as a leading mortgage provider to citizens of Singapore. HSBC is the coined acronym for Hong Kong and Shanghai Banking Corporation which offers a variety of financial products and services to its customers. In 2017, the bank recorded an estimate of S$7.7 billion in outstanding home loans in the country.

According to its status as a major home lender in Singapore, HSBC offers one of the most remarkable interest rates for home loans. Its total loan costs and regular interest rates are very attractive and feasible for the average borrwers. Other unique banking features include Smart Mortgage, an interest-offset account that helps members repay their loans with ease. HSBC also presents distinct loans, mortgages, saving plans, investments and credit cards to Singapore subscribers. Singapore’s citizens are advised to visit the nearest HSBC bank for more information.

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.

HSBC is dedicated to their client’s comfort; so they created a home loan programme that enables clients to choose fixed rates, SIBOR-pegged home loan rates or time deposit-pegged mortgage rates. In line with its record, you can save more money through their HSBC Smart Mortgage package along with other premium benefits and privileges. These reports show that HSBC has numerous pleasant packages for its Singaporean customers.

HSBC is very passionate about the mortgaging industry of Singapore and this is seen in its unique banking system. Although its local marketing strategy is more focused on business enterprises and individuals of affluence, their regular home loans are still among the most affordable interest rates in Singapore for both HDB and private property loans.

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 the 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 rates, 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 Refinancing Home Loan Interest Rates

HSBC usually offers manageable home loan refinancing bundles. Its floating rates and fixed rates are among the lowest in the market. However, in April 2018, its floating rates became more affordable. This highlights the importance of comparing the interest rates of different banks before deciding on the refinance plan that suits your needs.

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

When considering fixed-rate loans, it is advisable to seek loans with the most reasonable total interest cost, moderate monthly installments and refinancing flexibility. Home loans with fixed rates have fixed interest rates reaching 3-5 years. After their life span has been exhausted, the rates begin to float.

Additionally, HSBC offers credits for the legal costs associated with refinancing one’s home loan. The bank offers S$2,000 to borrowers that want to refinance loans with S$500,000 or more. However, this is not satisfactory to borrowers that plan to refinance loans of less than S$500,000.

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 Cost of Loans

    Convenient for Individuals seeking home loans with low total cost of borrowing

  • Low Interest Rates

    Suitable for borrowers seeking some of the lowest interest rates available

  • Interest-Offset Account

    Ideal for Individuals who want an interest-offset account for their private home loan

  • Lower Refinance Loans

    Unsuitable for borrowers interested in refinancing loans of less than S$500,000

ALL DETAILS

Loan Features

  • Affordable home loans with low total mortgage cost
  • Legal Fee Subsidies: S$2,000 (for loans of at least S$500,000)
  • Minimum loan principal: S$200,000
  • Innovative loan programmes like Smart Mortgage, interest-Offset account and many more

EXTERNAL REVIEWS

Money Smart