• Home Loan BYTES FROM OUR KITCHEN

    HSBC Home Loan

    HSBC provides different types of home loans to a customer depending on the requirements and eligibility of the applicants. In Malaysia, there are three types of home loans that HSBC offers, which include Ideal Home Plan, HSBC HomeSmart, and HomeMaker Loan. The loans offer benefits such as flexibility, low-interest facility and refinancing.

    Interest/Profit Rates

    Type of Loan Loan Tenure Interest Rate
    HSBC HomeSmart 5 years to 35 years As per the bank’s discretion
    HSBC Ideal Home Plan 5 years to 35 years As per the bank’s discretion
    HomeMaker Loan 5 years to 35 years As per the bank’s discretion

    (*Ceiling Rate (for Ideal Home Plan)= BR + 2.50% p.a.; *ELR = Effective Lending Rate)

    Fees & Charges

    HSBC Home Loan Fees and Charges
    Processing fee Nil
    Stamp Duties As per the Stamp Duty Act 1949 (Revised 1989)
    Late Payment Charges 1% p.a. on instalment amount in arrears
    Early Termination (early settlement) Fee 2% x Facility Amount x Number of Remaining Months Within Lock-in Period/ Total Lock-in Period in Months
    Monthly Service Fee (for HSBC HomeSmart) RM10 plus 6% Goods and Service Tax is charged per month
    Commitment Fee (for HSBC HomeSmart) RM40 per month is the if the average utilization rate is less than 50%
    Legal Fees and Disbursement Fee As per the bank’s discretion plus 6% GST

    Eligibility Criteria

    Nationality Criterion Malaysian or Non-Malaysian resident
    Age Criteria
    • Minimum age: 18 years
    • Maximum age: 65 years
    Income Criteria / Property Value Property Value for Ideal Home Plan: Up to RM100,000 (for Peninsular Malaysia) and RM120,000 (for East Malaysia)

    Documents Required

    • A copy of identity card or passport
    • Latest 3 months’ salary slips
    • Latest Form B/BE
    • EA form or
    • Latest EPF statement
    • For salaried employee with more than 3 months’ employment, it is mandatory to provide the Letter of Appointment or Confirmation letter from employer
    • Sale and Purchase Agreement/Deposit or Booking Slip/Letter of offer from the house developer
    • A photocopy of the land title (if any)
    • Latest bank statements for six months (it is compulsory in the absence of salary slips and/or EA Form) showing salary/payment credited to the account
    • Self-employed applicants needs to provide business registration documents, latest 6 months’ bank statements, latest financial statements, and other required supporting documents of income

    Types Of HSBC Home Loans

    • Ideal Home Plan: The Ideal Home Plan is a specifically designed home loan plan for first time home buyers. The customers who are looking to buy a property worth up to RM250,000 in Peninsular Malaysia region or RM300,000 in East Malaysia locale can apply for this particular home loan plan.
    • HSBC HomeSmart: HSBC HomeSmart is a flexible home loan scheme that allows a customer to withdraw on excess payments made. It also provides refinancing facility to a customer.
    • HomeMaker Loan: This is a type of home loan that is calculated on the variable rate basis and requires borrowers to pledge their house as a security at the time of obtaining the loan.

    Features & Benefits

    • The plans come with quick approval times.
    • The Ideal Home Plan scheme offers regular and systematic repayment facility to a customer.
    • The Ideal Home Plan does not require a customer to consolidate his/her idle funds into their home loan account.
    • The margin of financing a customer can get from Ideal Home Plan is up to 90%.
    • The Ideal Home Plan allows borrowers to pair their home loan with Takaful Products for complete home and personal protection.
    • No monthly fees and set up cost is required to pay for Ideal Home Plan customers.
    • Easy withdrawal of the excess payments is possible through the HSBC HomeSmart home loan scheme.
    • With HomeSmart Reserve facility, a customer can get additional loan secured against his/her existing property.
    • HomeSmart Advantage is a facility to secure a loan against an unencumbered property. A customer can use HomeSmart Advantage to turn the unencumbered worth of his/her home into cash. This cash can be used for home renovation or any personal expenses.
    • Both HSBC HomeSmart and Ideal Home Plan function on daily interest calculation basis.
    • The available tenures range from a minimum of 5 years to a maximum of 35 years.

    How To Apply

    The HSBC Home Loan Application Process is easy and can be facilitated through the following ways:

    Offline Application: Applicants can visit their nearest branch and apply for the desired home loan product. The nearest branch can be located through a branch locator on the bank’s official website. A customer can submit the documents required along with the completed application form to finish the application process.

    Online Application: The bank has an ‘Apply Now’ tab on its official website. A customer can click on the tab and fill in his/her personal details and loan requirements in that form. He/she can also submit the required documents online with the application form. After finishing the process and submission of all the details, a bank representative will contact the customer to carry the process forward.

    Calculator

    A Home Loan Repayment Calculator tab is provided on the official website of the HSBC where a customer can get information related to his/her repayments, borrowing limits and comparisons. The actual loan amount granted to a customer is dependent on the credit evaluation process. A customer needs to log in to his internet banking account to obtain the HSBC Home Loan Calculator facility.

    HSBC Home Loan Refinance

    • If borrowers have completed more than 5 or 6 years of their home loan tenure they can opt to refinance their loan.
    • The refinanced home loan will allow borrowers to pay off their loan at a lower interest rate.
    • HSBC HomeSmart Plus is an ideal plan which is applied for refinancing purpose.

    Contact Number

    To know more regarding the application form, application status or customer service and department contact, a customer can contact the hotline- 1300-88-1388.

    FAQ's

    Q. What is the minimum and maximum loan tenure for the HSBC Home Loan?

    A. The minimum tenure is loan tenure is 5 years and maximum tenure is 35 years or up to age 70 of an applicant, whichever is earlier. The maximum loan tenure approved to a customer is subject to the bank’s discretion.

    Q. What is the interest rate for the HSBC HomeSmart Plan?

    A. The HomeSmart interest rate is pegged to Base Rate (BR) with a spread.

    Q. What is the minimum home loan amount I can apply for at the HSBC Home Loan?

    A. The minimum home loan amount applicable is RM50,000.

    Q. What is the maximum loan amount that is granted to me under the home loan facility?

    A. The home loan amount granted to a customer depends upon his/her income, credit limit and property value. However, a customer can get up to RM5,000,000 as home loan through the bank.

    Q. For how long do I need to pay the commitment fee?

    A. A Commitment Fee will only be imposed on a customer for a period of 5 years after full disbursement of the facility. RM40 is the commitment fee charged on the HSBC home loan facility if the average outstanding balance for that month is less than 50% of the facility limit.

    Q. Can I make an early settlement for my home loan? What I need to do to obtain the facility?

    A. Customer can make a request to the bank for early settlement of the loan by sending in a written request to the bank at least 1 month in advance of intended date of settlement. However, if the loan is still within the lock-in period, a customer is required to pay the early settlement charges.

    Q. I am a self-employed individual. What documents do I need to submit showing validation of my business?

    A. As a self-employed businessman, you are required to provide, your business registration certification, bank statements for the most recent 6 months, latest financial statements and other supporting documents to support and validate your income.

    Q. What is a Base Rate? Why is it essential from a borrower’s perspective?

    A. The Base Rate or BR is derived from two parts- the benchmark cost of funds (COF) and Statutory Reserve Requirement cost (SRR) imposed by the Bank Negara Malaysia. The base rate is considered while calculating the interest rate to be paid by a customer. Though the BR is pre-decided by a bank, it may change as per the social and economical variations in the country as well as across the globe. Therefore, the BR is an important factor for a customer to be aware of.

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