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?
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
HSBC HomeSmart
Between 21 to 65 years old
New or existing HSBC Advance customers
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.
