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