Category Archives: Loan Packages

HSBC HOME LOAN PROMOTIONAL RATE Oct 2009

HSBC’s Key advantage :
No Lock in package at very attractive rate (based on transparent index – sibor)

What  is  Sibor?  Sibor  is Singapore Inter Bank Offer Rate, rates at which banks lend in wholesale money market.

HSBC  applies  3  month Sibor rate, as published on Business Times on the  1st  business  day of loan start month for a period of 3 months, following  which  the  rate  will  be re-set to the most current rate again.

Completed properties
For HDB Loan : Minimum $100k
For Private Residential Property : Minimum Loan : $200k

Package 1:
HSBC Loyalty Package :
Year 1: 3mths sibor + 1.20% = 1.88% *
Year 2: 3mths sibor + 1.10% = 1.78% *
Year 3: 3mths sibor + 1.00% = 1.68% *
Based on currrent sibor of 0.68% *
Please note that the actual rate will be based on the sibor rate re-set every 3 mths.

Package 2:
Standard spread
Standard All year : 3mths sibor + 1.10% = 1.78%*
Based on currrent sibor of 0.68% *
Please note that the actual rate will be based on the sibor rate re-set every 3 mths.

Applies to both package :

• Repayment terms: No lock in penalty
• For partial repayments : For 1st year of loan, required to leave balance of $100,000 after repayment (subject to 1 mth’s notice)
• For full repayments: No penalty for full repayment of loan (subject to 3 mth’s notice)

Special benefits for HDB and completed private property:

1. Legal subsidy 0.5% of loan amount, capped at $2500 (subject to refund is loan is fullyredeemed during 1st 3 years of loan)
2. Free 1 year fire insurance
3. Free valuation (only for private property)
4. Cancellation fee if loan is not utilized after acceptance : 1.5% ofcancelled loan amount

Uncompleted Properties (Building Under Construction – BUC)
For Private Residential Property : Minimum Loan : $200k
Standard All year : 3mths sibor + 1.10% = 1.78%*
Based on currrent sibor of 0.68% *
Please note that the actual rate will be based on the sibor rate re-setevery 3 mths.

Special benefits for uncompleted property (BUC):

1. Legal subsidy 0.5% of loan amount, capped at $2500 (subject to refund is loan is fully redeemed during 1st 3 years of loan)
2. Free 5 years fire insurance, start from TOP
3. Free valuation (for private property only)
4. Cancellation fee if loan is not utilized after acceptance : 0.75% for selected projects only (check with HSBC)
5. Other projects : 1.5%

Repayment terms:

• For partial repayments : For 1st year of loan, required to leave balance of $100,000 after repayment (subject to 1 mth’s notice)
• For full repayments : No penalty for full repayment of loan (subject to 3 mth’s notice)

Source : HSBC – 2 Oct 2009