HSBC Home Loan: Is it the best option?
Securing a home is essential, though you need to prepare for it. Buying a house needs a significant amount of money, and that requires deep planning.
You have to consider things before you buy a home:
- First, assess your financial status if you can get one.
- Look for home loans that suit your financial needs.
Remember, Singapore is one of the most expensive places to live in the world. And getting home is one expensive goal an individual could achieve. So you have to weigh all your options depending on your income flows, savings, debts, and even expenses.
Prepare yourself for upfront costs. Also for monthly instalments and other fees when you buy a home.
But is it worth it to take a home loan? Some might ask the same question. Doubts and fears are there, and it’s normal, though. But if you take steps like summing up and look for an affordable deal, getting home won’t be impossible.
But what is a home loan, anyway?
In a simple definition, a home loan is money borrowed from a bank or any lending institution to buy a property. You’re going to repay what you’ve borrowed at a specific time. That includes the interest incurred.
If you’re wondering where you can get a home loan, Singapore has a lot to offer. Many institutions are offering various packages for home loans. These home loans have different interest rates and lock-in periods.
One of the ranking banks in the country is HSBC. Many people trusted their Home Loans services. So you might consider HSBC as your financial partner in making your dream home come true.
HSBC Home Loan Singapore
Before anything else, know what type of property you want to buy. Is it a private residential one? Are you interested in HDB properties? Or maybe you’re planning to get a commercial property under an individual name?
HSBC Home Loan is a product that will finance you in purchasing a property. Also, the bank allows you to refinance an existing housing loan.
HSBC Home Loan Amount
The loan amount you wish to borrow will depend on what type of property you’ll buy. For HDB and private property, you can borrow at least S$200,000. While for commercial property, you can get as much as S$300,000.
But be in mind that the approved loan amount will depend on some factors. That will be your income profile and credit history.
Fortunately, HSBC has home loan packages. Thus, it provides options for customers who wish to know what home package they’ll choose to get. With their mortgage specialist, you’ll get to know which home loan type best suits your and your family needs.
HSBC Home Loan Application Form
Applying for an HSBC Home Loan can be done through their official website. HSBC provided all necessary documents for the home loan application.
At the bank’s Help portal, you’ll find all the downloadable forms, including the property loan application form.
HSBC Home Loan Contact
Customers can always connect with HSBC whenever they have concerns. YAS, a virtual assistant, will help you with non-account related queries for 24 hours. For further help, YAS will connect you with one of HSBC’s chat agents.
The customer service can cater to customers every day. The bank is available from 8:30 am to 10:00 pm during weekdays. But for weekends, the bank is open from 10:00 am up to 10:00 pm.
If you want to do your queries more quickly, you can use the HSBC Singapore app or do it through HSBC online banking.
SIBOR HSBC Home Loan Option in Singapore
HSBC has options to serve its clients best. The bank will help you find the best home loan suited for you.
Decide whether you will build or buy your home. Buying a home may be the most significant investment you can have in your life. But building a home requires more patience, time and money.
Decide on whether you will buy or build your own home. From there, you will be able to decide which loan is perfect for you.
One of the home loan options is a SIBOR-pegged loan. This type of loan will let you enjoy the flexibility of no lock-in period. This home loan package is applicable for both completed properties and properties that are about to be built.
A SIBOR-pegged loan has fixed interest rates for the first three years. After that, the fixed interest rate is SIBOR + 1.80% p.a. Yet, the SIBOR-pegged package applies only to the minimum loan amount of S$200,000. Using this type of loan requires a Temporary Occupation permit for completed properties.
If you are an existing client of HSBC, you are entitled to apply for a “SmartMortgage” loan product. SmartMortgage links your home loan account with your existing account. You can reduce interest on your home loan through this.
Paying less interest will make you save money. It can make you pay off your home loan in less time. It can also help you maximise the control of your finances and savings. Plus, you can freely choose to have no lock-in or lock-in periods up to three years.
Comparison of Home Loan Interest Rates in Singapore
You must be wondering which loan institution offers the best option for home loans. Here is a comparison among the rates and lock-in periods of different institutions.
If your home is still under construction, you can get home loan plans with no lock-in period. Maybank, Standard Chartered and OCBC offer loan options that have no lock-in period. This type of loan is called the 3-month SIBOR Floating Rate.
Among the three banks mentioned, OCBC has the lowest interest rate for the first year. During the first year, OCBC offers an interest rate of 1.24%, while Maybank and Standard Chartered offer an interest rate of 1.29% for the first year.
For resale homes, CIMB and Standard Chartered offer a lock-in period of 2 years. Between these two banks, CIMB is more preferred as they offer fixed interest rates. The said interest rate is 1.3%.
Standard Chartered and Maybank offer an interest rate of 1.29%. The only difference between the two banks is that Maybank offers a shorter lock-in period of 1 year.
UOB offers a pretty enticing home loan offer. The least amount you can borrow is S$100,000. And the maximum amount to be borrowed is S$2,000,000.
It has a lock-in period of two years, but the interest rates are fixed. The said interest rate is 1.41%.
Having a fixed interest rate also gives you a fixed monthly instalment due. You can maximise your spending power if you choose a loan like this. Your payments will be consistent without having to worry about interest rates that go higher as time goes by.
Applying for a loan that has a lock-in period may prevent you from refinancing your home loan. But take note that refinancing your home loan can help you save more money from interest rates.
Refinancing means applying for a different home loan package in another lending institution.
Repayment is also a key to saving money from interest rates. But, repayment only allows you to change your home loan package with the same institution as your existing package. Thus, you can save time from the hassle of transferring records to other banks and institutions.
Take note that refinancing means that you have to submit all the institution’s requirements you chose to refinance your home loan.
3 Reasons Why Getting An HSBC Home Loan Can Help You
There’s a great advantage when you get a home loan. Thus, it helps you get that home you and your family is dreaming of. Here are the five reasons why getting a loan is helpful.
Getting a home loan is very accessible.
Getting a home loan is easy! You can enjoy a home loan in just a blink of an eye. Thanks to HSBC’s online banking, which makes it more convenient to apply.
Documents are accessible and you probably already have. Just submit the requirements, and voila! You can now have your dream house at just the speed of light.
Enjoy Low-interest rates.
You get favourable and flexible interest rates in HSBC. There’s a bunch of choices in HSBC Home Loan. You can choose which you think you can afford to buy.
You’ll save money.
With SmartMortagage, you can save more. It’s possible when your home loan account gets linked to your current account. Your home loan’s interest reduces by offsetting it to your current account’s interest earned.
Getting a home isn’t an easy goal, yet it takes more courage and commitment to make it in reality. In addition, you need to be mentally and financially prepared. Home loans, on the other hand, existed to provide financial assistance to those who desire to buy a property,
HSBC has been in the industry for many years and succeeded to meet what its customers need. So when it comes to making your dream home come true, HSBC will welcome and help you reach that goal.
However, loan approval is quite strict. That’s why some applicants weren’t able to get a home loan. You can avoid this one by checking first your income status and by building a credit score.
Besides a home loan, if you need an online loan for home improvements, you can get a shorter-term loan from moneylenders. It can give you options suiting your financial status.
For example, you can get instant cash loans like renovation loans to use for any home expenses. In addition, you can try to look for moneylenders that are also under the Moneylenders Act regulation.