HSBC Amanah Home Loans are house funding plans which let customers buy their own house without eating into their life savings. These plans are highly flexible and customers can choose the value of installments payable according to their financial situation and preference. Being a banking mogul in the Malaysian financial services industry, HSBC Amanah helps its customers buy property at the most profitable rates.
You’re probably eligible for an HSBC Amanah Bank Home Loan if you are
At least 18 years old
Less than 65 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
Your HSBC Amanah Bank Home Loan amount eligibility is based on these factors
Instalment limited to about 50%
of monthly income
Loan capped @ Up to 90%
Instalments of other loans lower
Increase your eligible HSBC Amanah Bank Home Loan amount by these steps
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 35 years
Alternatively add your parents
Documentation needed to apply for an HSBC Amanah Bank Home Loan
- 1. A photocopy of identity card or passport.
- 2. Your latest 3 months' salary slip.
- 3. Your latest income tax return form (Form B/BE) or EA form or latest EPF statement not exceeding 12 months old.
- 4. If new salaried employees (at least 3 months in service), Letter of Appointment or Confirmation letter from employer stating salary/allowances.
- 5. Sale and Purchase Agreement/deposit or booking receipt/letter of offer from the housing developer.
- 6. A photocopy of the land title (if any).
- 7. The latest bank statements dating back six months (compulsory in the absence of salary slips and/or EA Form) showing salary/payment credited to the account.
- 8. If you are self-employed, you need to provide your business registration documents, latest 6 months bank statements, latest financial statements and other supporting documents to support your income.
HSBC Amanah Bank Home Loan Interest RatesUpdated on 24 Oct 2016
|Margin of Finance||Up to 90%|
|Guarantor Requirement||No Guarantee Required|
HSBC Amanah Housing Loans in Malaysia
Islamic home loans are based on the concept of diminishing ownership where the bank enters in a joint ownership agreement with the buyer in line with repayments (made in installments), the share of the bank reduces until ownership is wholly transferred to the customer. The margin of the finance available on these loans is up to 90% with long repayment periods. In recent times, these home loans have gained a lot of popularity in Malaysia especially due to their convenience benefactor. Besides it is being offered by HSBC who are said to be one of the largest banking conglomerates in banking in the World.
Features of HSBC Amanah Home Loans
The major features of HSBC Amanah Home loans include:
- The HSBC Amanah housing loan is based on the concept of Diminishing Musharakah where the bank transfers ownership of the house upon repayment of all loan installments.
- Financing is available up to RM100,000 for purchase of property in Peninsular Malaysia and up to RM120,000 for purchase of property located in East Malaysia.
- This package comes with extra amounts repaid along with the installment, will earn profit at a rate which leads to a reduction in the total amount payable.
- This is a flexible loan there are no charges or any notice required to make excess payments or prepayment of the loan.
- Those who are buying their first home will be offered a fee waiver of 20% on the stamp duty.
- The loan period varies up to 35 years or up to 65 years (borrower’s age); whichever is earlier. Other than that, there are no monthly charges, set up fees or any hidden costs.
Types of of HSBC Amanah Home Loans
HSBC Amanah HomeSmart-i
This plan comes with no redrawal charges and is non-linked account plan. It is a Full-Flexi plan from HSBC. The monthly charges for maintaining this home loan account is RM 10 only. the monthly charges can be reduced by making extra repayments when under favourable conditions. 20% of the stamp duty is waived off. The margin of the finance available on these loans is up to 90% with long repayment periods.
Interest Rates for HSBC Amanah Home Loans
Based on the rate table as on HSBC Malaysia portal, here are the following interest rates as on February 8, 2016:
Base Financing Rate (BFR) = 6.85%
(Prior to 2 Jan 2015)
Base Rate (BR) = 3.75%
(On and after 10 July 2015)
|Profit Rate p.a.||
BFR – 2.00%
BR + 1.10%
|Effective Financing Rate p.a.||
How to apply HSBC Amanah Home Loan?
Any individual above the age of 18 years and below 65 years is eligible to apply given that the house being financed is the only residential property he or she owns. Any property; completed or under construction may be financed under this plan, however, it cannot be availed for refinancing purposes.
The following documentation is also required:
- A photocopy of identity card or passport.
- Your latest 3 months' salary slip.
- Your latest income tax return form (Form B/BE) or EA form or latest EPF statement not exceeding 12 months old.
- If new salaried employees (at least 3 months in service), Letter of Appointment or Confirmation letter from employer stating salary/allowances.
- Sale and Purchase Agreement/deposit or booking receipt/letter of offer from the housing developer.
- A photocopy of the land title (if any).
- The latest bank statements dating back six months (compulsory in the absence of salary slips and/or EA Form) showing salary/payment credited to the account.
- If you are self-employed, you need to provide your business registration documents, latest 6 months bank statements, latest financial statements and other supporting documents to support your income.
How to Calculate Loan Installment for HSBC Amanah Home Loan?
HSBC home loan installment calculator is an extremely useful tool hosted on bbazaar.my. The tool takes in loan parameters like home loan amount, loan tenure, the corresponding profit rate and the processing fee to manipulate this data and yield the monthly home loan installment for customers. Customers can use this tool to reach their loan installment amount and plan their future financial budget accordingly. Also, this tool can be used to vary input data to finally reach the most optimum installment amount. Am amortization table is also displayed as a result of data processing by the tool. This table lists down the loan repayment schedule and the corresponding balance principal and interest amount at various point of the loan cycle.
FAQs on HSBC Amanah Home Loans
How can installments be repaid?
Customers can choose from various repayment modes such as online banking, cash deposit, cheques and phone banking.
Can I make withdrawals of excess payments towards the home loan?
Absolutely, you can make multiple withdrawals without any charges being levied.
What is the minimum age of application for a HSBC Amanah Home Loan?
The minimum age for application of a HSBC Amanah home loan is 18 years and above.
What is the minimum & maximum financing tenure?
The minimum tenure is 6 years or at least twice the lock-in period. The maximum tenure is 35 years or up-to 65 years old, whichever comes earlier. The maximum tenure is however based on the bank’s discretion.
What is the maximum amount I can apply for, in a Home Smart-i loan from HSBC Amanah bank?
According to the bank portal, ‘ How much can I apply for? The maximum margin of financing is 90% of the Current Market Value/Net Purchase Price whichever is lower and is subject to credit evaluation by the Bank.’
Other Products offered by HSBC Amanah:
Apart from offering Home Loan,HSBC Amanah offers other products and services which include: