HSBC Home Loan

About HSBC Bank

HSBC is the world’s largest financial and banking services organization, with a network that stretches across 64 countries and territories in Europe, Asia, the Middle East, Africa, North America, and Latin America. HSBC’s presence in Malaysia dates to 1884, when the Hongkong and Shanghai Banking Corporation Limited established its first office on Penang Island. It was awarded an Islamic banking subsidiary license in Malaysia in 2007.

What is a home loan?

A home loan is a sum of money that you apply for or borrow from a bank to assist you in purchasing your dream home. Each loan will be charged an interest rate determined by the loan amount and the repayment period. So, keep in mind that each bank will have a different interest rate, and you should do some research before applying for a home loan.

What type of home loan does HSBC offer?

HSBC provides 3 types of home loans:

• HSBC Ideal Home Plan
• HSBC HomeSmart
• HSBC HomeSmart-i

What should I know before applying for a home loan?

• Interest rates

  You must be aware of the interest rates that the bank will charge you, either fixed interest rates or variable rates.

• Type of loan

  In Malaysia, there are 3 types of loans offered: term loan, semi loan, or flexi loan.

• Lock-in period

  Knowing the lock-in period is crucial because it often occurs when there is a sudden need for full settlement, refinancing, or selling your property.

• Margin of finance

  You must understand your margin of finance, which is the amount of money that a bank will allow you to borrow for your loan and how much cash/ upfront you must pay for the property.

• Fees

  The fees include legal fees, stamp duty charges, late payment fees, early settlement fees, and others.

• Type of bank

  The bank you have chosen to apply for a home loan with, as different banks offer different loan amounts, terms, etc. Choose a bank where you are comfortable applying for a home loan.

Who is eligible to apply for HSBC home loans?

1. HSBC Ideal Home Plan
• Between 18 to 60 years old
• Sole residential property (not applicable for refinancing or investment purposes)
• Maximum property price:
• Peninsular Malaysia: RM250,000
• Sabah and Sarawak: RM300,000
2. HSBC HomeSmart
• Between 21 to 65 years old
• New or existing HSBC Advance customers
3. HSBC HomeSmart-i
• Between 18 to 60 years old

Why should I choose HSBC home loans?

• It provides a variety of home loan financing options to suit your need
• Shariah-compliant, based on Diminishing Musharakah (co-ownership)
• Repayment period of up to 35 years
• Flexibility to withdraw on excess payments anytime without notice or charges*
• The margin of financing is up to 90%*
• Interest is calculated monthly*

*Depending on the selected home loan

Who should I contact for further information about HSBC home loans?

For more information or assistance with HSBC home loans,

• Contact HSBC at 1-300-80-2626
• Visit an HSBC branch nearby

What are the documents required for HSBC home loans?

• HSBC Ideal Home Plan, HSBC HomeSmart & HSBC HomeSmart-i:
• Salaried employee (at least 3 months in service)
• Copy of NRIC or passport
• Latest 3-month salary slip/ 6-month bank statement
• Latest income tax return form/ EA form/ latest 1-year EPF statement
• Sale and Purchase Agreement/ deposit or booking receipt/ Letter of Offer from the housing developer
• Copy of land title (if any)
• Confirmation letter from the employer stating salary
• Self-employed
• Copy of NRIC or passport
• Latest 3-month salary slip
• Latest income tax return form/ EA form/ latest 1-year EPF statement
• Sale and Purchase Agreement/ deposit or booking receipt/ Letter of Offer from the housing developer
• Copy of land title (if any)
• Business registration documents
• 6-month bank statement
• Recent financial statements and any other documents that support your income

What are the fees included in HSBC home loans?

• Stamp duty

  As per the Stamp Duty Act 1949 (Revised 1989)

• Late payment fee

  1% of the amount in arrears

• Monthly service fee

  RM10

• Early settlement fee

  2% x original loan amount x remaining months of Lock-in Period/ total Lock-in Period in months

What are the common terms of home loan?

• Lock-in period

  A period during which you will be penalised if you pay off your home loan earlier than agreed. The fine ranges from 2% to 5% of the total amount.

• Margin of Finance (MOF)

  The amount of money that a bank will lend you for your loan determines how much cash you must pay upfront for the property.

• Interest rates

  It is the amount of money you paid to the bank in addition to the principal amount.

• Valuation

  An estimate of the property’s worth and the stamp duty is calculated based on its value.

• Base rate

  The base rate is the interest rate charged by Bank Negara Malaysia to commercial banks for loans.

• Base Lending Rates (BLR)

  A rate set by each bank based on the cost of borrowing the money to be lent to borrowers.

• Refinancing

  Repaying an existing loan and replacing it with a new one with new terms and conditions.