Tag Archives: Mortgage

HSBC has unveiled a first-in-the-market equity-linked home loan package in which customers could receive quarterly cash rebates over two years – at no additional cost.

There is also no lock-in period for the new package – and cash rebates given out are not subject to claw back if the home loan is redeemed, the bank said in a media release.

The loan package, open to all new and existing HSBC Premier customers in Singapore, charges an interest rate of Sibor+1.1 per cent throughout the loan tenure, but also offers the opportunity to receive potential cash rebates for two years.

The cash rebate will be granted in each quarter if the equity index to which the home loan package is pegged – in this case, the Morgan Stanley Capital International Singapore Free Index (SGY) – hits or exceeds 130 per cent of a specified barrier level on each valuation date. This occurs on the first trading day of every quarter.

Eligible customers will then receive in that quarter a cash rebate of 0.25 per cent of their outstanding loan, which will be credited into their home loan repayment account. Continue reading →