When you have the name HSBC attached to you housing finance option, you already know that you are in good hands with this international financial brand known as the World’s local bank. Though the bank is internationally known to be at the top of their game, they are also well known to be spectacularly, customer centric. This is why, they do not have just one option for a home loan, but two. Not only can an individual seek financial aid through HSBC for a completed property but also properties that are under construction. This not only helps people to make the most of the loan but to seek options whenever needed. This is not all. The financing margin is high as 90%, which make things more convenient and easier to deal with, already. Also this financial corporation does not charge borrowers any monthly fee or set-up costs and the calculation of the interest rates is computed monthly or daily based on the product chosen. Also HSBC cares about your home, offering complete packages of loans along with Takaful personal protection and home insurance products. You also have something called the HomeSmart Reserve, to help you aid financial emergencies while paying this loan. To know more about this scheme in details and other details about HSBC home loans, read on.
You’re probably eligible for an HSBC 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 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 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 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 Bank Home Loan Interest RatesUpdated on 19 Jan 2017
|Margin of Finance||Up to 90%|
|Guarantor Requirement||No Guarantee Required|
HSBC Home Loan is one of the most preferred and flexible financial solutions for all types of home buying and construction activities in Malaysia. Part of the HSBC Group, HSBC Bank Malaysia Berhad dates back to 1884 at Penang. In the year 2007, HSBC Bank Malaysia became the first locally incorporated foreign bank in the country to get an Islamic banking subsidiary license in the country. HSBC Malaysia today has over 68 branches in the country and with specialized Islamic banking branches under its brand.
HSBC Home Loan
HSBC Home loans in Malaysia includes financing options for both new home owners who have just started off their family life, people who wish to construct their own home or people who are willing to invest in real estate for obvious benefits later. However, it is essential to note that Malaysia’s housing expense is very high and companies such as HSBC are able to provide people with the perfect solutions in terms of financing and even re-financing. In Malaysia, Islamic home finance is also available through HSBC, which are based on financial laws of Islam.
Types of Home Loans Available From HSBC
Ideal Home Plan: HSBC Ideal Home Plan is a simple financial tool offering home finance up to 90% of the property value. The Ideal Home Plan is especially suited to first time home buyers of a property worth up to RM100, 000 in Peninsular Malaysia or RM 120, 000 in East Malaysia. With high margin of finance, no monthly fee or setup costs, HSBC Ideal Home plan is most suitable for the first time home buyer. The interest rate is calculated monthly pairing the home loan with Takaful Products for complete home and personal protection.
HSBC Home Smart: HSBC HomeSmart Plan is a well designed home loan scheme that is built keeping in mind the changing financial needs of every family. HSBC HomeSmart plan allows withdrawal of excess payments done for the loan to look after other financial needs especially for the growing family. By just depositing your entire salary and leaving a little extra excess payment in your HomeSmart account every month makes a big difference in how soon you can pay off your home loan.
Features and Benefits of HSBC Housing Loans
Ideal Home Plan
- Margin of financing for housing is available for up to 90%.
- HSBC does not charge any monthly fee and set-up cost.
- The Interest payable for the housing loan is calculated monthly.
- You can take packages of home loans with Takaful Products for a complete home and personal protection from HSBC.
HSBC Home Smart
- You can use the flexible features allowing you to rearrange life's priorities anytime.
- There is a ‘3 Simple Ways’ process for you to own your home at a jiffy.
- The interest payable is calculated on daily basis.
- You have the options and benefits of Easy withdrawal of the excess payments that you make.
- You can take packages of home loans with Takaful Products for a complete home and personal protection from HSBC.
There are also refinancing options available from HSBC, in case you already are paying a home loan but want to pay smaller EMIs, for a longer period of time, making it more convenient for you.
HSBC Housing Loans Interest Rates
The interest rates for the housing Ideal Home Plan is calculated at a monthly basis while the interest rates for for HomeSmart Plan is calculated on a daily basis. This makes the calculations be lower as compared to, if they were calculated for larger periods of time. You also have the advantage of making excess payments to help reduce the interest rates for future payments.
How to apply for an HSBC Housing Loan?
There are certain eligibility criterias that one must meet along with documentation required to apply for the housing loan:
Requirements for Ideal Home Plan
- He or she should ne18 to 65 years of age
- His or her home should be their only residential property
- Property value should be up to RM100,000 for Peninsular Malaysia or RM120,000 for East Malaysia
- 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
FAQs on HSBC Housing Loans
For whom is the Ideal Home Plan best suited?
The Ideal Home Plan is especially suited to first time home buyers of a property worth up to RM100, 000 in Peninsular Malaysia or RM120, 000 in East Malaysia.
What is the maximum margin of finance under HSBC Ideal Home Plan?
HSBC Ideal Home Plan offers a margin of finance up 90% of the property value with no setup cost
What are the flexibility options under HSBC Home Smart Loan?
HSBC Home Smart Loan offers daily interest calculations making the financial obligations limited as compared to other home loans in the market. The easy withdrawal of excess payments offers a perfect protection plan for the borrower as well as his or her family and loved ones.
What are the documents required for HSBC HomeSmart Loan?
In order to apply for a HSBC HomeSmart Loan, each applicant must submit a photocopy of identity card or passport, latest 3 months' salary slip and the latest income tax return form (Form B/BE) or EA form or latest EPF statement not exceeding 12 months old. In addition, the Sale and Purchase Agreement/deposit or booking receipt/letter of offer from the housing developer along with the photocopy of the land title (if any) must also be submitted. In case the applicant is a new salaried employee (at least 3 months in service), Letter of Appointment or Confirmation letter from employer stating salary/allowances must be submitted.
What is HomeSmart Reserve scheme?
HomeSmart Reserve scheme offers additional loan against the existing property in case of any immediate financial emergencies. The additional loan can be used for any financial obligation including child's education, vacation, and medical expenses or towards business or investments without any conditions.
What are the benefits offered under the HomeSmart Advantage plan?
HomeSmart Advantage plan offers a loan against the unencumbered property even if the applicant has already finished servicing the home loan/home financing of a property.
HomeSmart advantage allows the flexibility of turning the unencumbered worth the home into cash which can be used for making home improvements or any other expenses.
Do I need to pay any other fees for processing my application?
You will have to pay Stamp Duties as per the Stamp Act 1949 (Revised 1989). There will be also a small fee for legal verification and disbursement formalities like fees for registration of charge and others. A 6% service tax is also applicable. There will be a monthly service charge RM 10 per month throughout the loan tenure
What if I happen to default my loan?
There will be a late payment fee of 1% p.a. on the pending installments. The bank may also initiate recovery activities through collection agents and legal actions shall be taken if the applicant is not responding. The property may also be foreclosed. Legal actions will affect your credit rating also reducing the further chances of taking a loan. It is advised to talk in person with the bank if you are unable to repay the loan.
Is any insurance / takaful coverage required for applicants?
You are supposed to insure the property against all possible risks
How to Calculate Loan Installment for HSBC Home Loan?
The online installment calculator hosted on bbazaar.my for HSBC home loan is an ideal tool for calculation of your home loan installment. This tool saves a lot of manual effort and time that goes in calculation of loan installments. You need to feed input data like loan amount, loan tenure, interest rate and processing fee and the online tool processes this data to yield the monthly installment amount for your home finance scheme. Also, these input parameters can be adjusted so as to reach that figure of loan installment that is best-suited to your pocket. The online calculator also gives as output, an amortization table that depicts the whole loan repayment schedule across the entire loan period. This also includes details like the balance principal amount and the interest amount at various points of the loan cycle.
Other Products offered by HSBC:
Apart from offering Home Loan,HSBC offers other products and services which include: