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.
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.
HSBC provides 3 types of home loans:
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.
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.
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.
*Depending on the selected home loan
For more information or assistance with HSBC home loans,
As per the Stamp Duty Act 1949 (Revised 1989)
Late payment fee
1% of the amount in arrears
Monthly service fee
Early settlement fee
2% x original loan amount x remaining months of Lock-in Period/ total Lock-in Period in months
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.
It is the amount of money you paid to the bank in addition to the principal amount.
An estimate of the property’s worth and the stamp duty is calculated based on its value.
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.
Repaying an existing loan and replacing it with a new one with new terms and conditions.