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Home Loans

Frequently asked questions (FAQ).

Finding a property

What is a freehold property and a leasehold property?

Freehold refers to an indefinite period of ownership.

Leasehold refers to a specified number of years of ownership (e.g. 99 years or 999 years) with effect from a specified date.

When does the sale and purchase have to be completed?

For private properties, the standard sale and purchase has to be completed within 12 weeks from the date the Option to Purchase (OTP) is exercised. For Housing Development Board (HDB) properties, the sale and purchase is completed at your completion appointment with HDB, which typically takes place 6 to 8 weeks after your first appointment.

When should I start shopping for a home loan and how do I know what I can afford?

A typical OTP has to be exercised within 14 days, failing which the option fee will be forfeited. Hence, to ease your mind, obtain an in-principal approval of the amount you can borrow from your bank before you commit to your purchase and pay the option fee.

How much cash do I have to set aside for down payment?

To make on offer, you have to place an option fee of 1% of the purchase price. To exercise the option, you would usually be required to pay a further 5% to 10% of the purchase price (less the option fee). For HDB properties, option fee is usually up to S$1,000 and to exercise the option, you will have to pay up to S$5,000 (less the option fee).

If this is your first property in respect of which you are taking up a loan: You may borrow up to 75% of the purchase price or valuation whichever is lower. For the remaining 25%, 5% has to be paid by cash and the balance 20% can be paid by cash or funds from your Central Provident Fund (CPF).

If this is not your first property and you have an existing loan on any other property: You may borrow up to 45% of the purchase price or valuation, whichever is lower. For the remaining 55%, 25% has to be paid by cash and the balance 30% can be paid by cash or funds from your CPF.

The above is indicative and may vary depending on the individual circumstances, regulatory requirements and the bank's final approval. Please speak to our mortgage specialist to find out more.

What if there is a difference between my purchase price and the market value?

If the market value is lower than your purchase price, you will need to pay the difference in cash. As such, the amount of cash payable upfront will be higher.

General

What is HSBC's home loan?

It is a loan that allows you to finance the purchase of a private residential property, Housing Development Board (HDB) residential property, or commercial property (under individual name) in Singapore. HSBC's home loan will also allow you to refinance an existing housing loan.

What is the minimum loan amount that I can apply for?

For private property and HDB flat, the minimum loan amount is S$200,000.

For commercial property, the minimum loan amount is S$300,000.

Which home loan package should I choose?

At HSBC, we offer home loan packages with many great features that allow you to customise your loan to suit your unique financing needs. Please provide us with your contact details and our mortgage specialist will contact you shortly.

Eligibility and requirements

How many years can I borrow for?

You may borrow up to a maximum period of 35 years (for private properties) and 30 years (for HDB flats), depending on the age of the borrower(s).

For re-financing facilities, the sum of the loan tenor and the number of years since the first residential loan was granted for the purchase is capped at 35 years (for private properties) and 30 years (for HDB flats).

What are the documents required for my application?

Please complete HSBC's Property Loan Application Form and enclose the following: 

  • Copy of NRIC/Passport
  • Employment Pass (for foreigners)
  • Latest notice of assessment
  • Computerized payslips (for salaried applicants)
  • CPF contribution history (for Singaporean/permanent resident)
  • Proof of other income or assets (if applicable)
  • Bank statements for existing secured and unsecured credit facilities held with other banks (if applicable)
  • Option to purchase or sale and purchase agreement (for new purchase)
  • Loan account statement for the last twelve months (for refinancing)

Please note that the Bank may request for additional documents, where necessary, at any time during the loan application process.

Upon the approval of your application, you will receive a facility letter stating the details such as loan amount, tenor and terms and conditions. Please ensure you understand the contents entirely, as it becomes legally binding upon loan acceptance. 

Which home loan package should I choose?

At HSBC, we offer home loan packages with many great features that allow you to customise your loan to suit your unique financing needs. Please provide us with your contact details and our mortgage specialist will contact you shortly.

Repayment

How will I pay for the monthly instalment of my HSBC's home loan?

The monthly instalment amount will be debited from your HSBC loan servicing account on each due date. If you intend to use CPF to service your monthly instalment, you will have to inform your lawyer to set up the CPF remittance arrangement.

Can I repay my loan (partially or in full) in advance?

Yes, you may make a partial or full repayment of your home loan. Before you do that, please refer to the facility letter and the standard terms for any early repayment charges payable.