HSBC's SmartMortgage - How it stacks up

1. What is the difference between SmartMortgage and traditional home loans?
   SmartMortgage is a faster and smarter way to pay off your home loan.
   
   It links your home loan to your current account*. By offsetting the interest earned against the interest payable on your home loan, you will enjoy more savings.
   
   Try our SmartMortgage Calculator and see how much you can save.
   

SmartMortgage vs similarly packaged home loan products

1. There are other home loan products in the market that also link my current account to my home loan account. How is SmartMortgage different?
   Here’s an illustration on the difference between SmartMortgage and the other banks' packaged home loan products in the market.
   
   

   	SmartMortgage	Package A	Package B
   Early redemption	Choice of no lock-in or lock-in periods of up to 3 years	1.5% of outstanding loan within penalty period of 2 years	1.5% of original loan within penalty period of 2 years
   Account linkage to loan account	1 current account to one loan account	1 current account to one loan account	1 current account to one loan account
   Interest rate for current account used to offset loan	SmartMortgage interest credit is currently capped at 80% of the interest on the SmartMortgage facility for the relevant month #	Only 2/3 of the deposit enjoys the same interest rate as the loan	Current account earns interest at daily rates of 2/3 of the current home loan rates charged

* Under the provisions of the Deposit Insurance Act 2005, all Singapore dollar denominated deposits with HSBC held by individual depositors will be insured by the Singapore Deposit Insurance Corporation Limited for up to S$20,000. For more information, click here.

^#The credit balances in the current account is used to reduce the interest cost of mortgage loans.

Revision of Property Loan Standard Terms
The Bank's Property Loan Standard Terms have been changed and updated with effect from 1 August 2008. Please refer to the updated version of the Standard Terms which is available at any of our branches.