Table of contents
- What is the benefit of Decision in Principle?
- What factors are taken into account when you apply for a Decision in Principle?
- How long does a Decision in Principle last?
- What happens after a customer receives a Decision in Principle?
- Why might the customer's mortgage offer differ from his Decision in Principle?
- What is HomeSmart/-i?
- What are the benefits of HomeSmart/-i?
- What is the minimum and maximum loan tenure?
- What is the interest rate?
- What is the minimum and maximum loan amount?
- What fees and charges do I have to pay?
- Can customers prepay or redraw from the facility?
- Can customers make early settlement?
- How to apply?
- What are the documents required?
- How can I work out the estimated instalment amount?
- How much can I borrow?
- Can I apply for a top-up facility for personal use?
- If I have a property that is not charged to any bank, can I charge it to your bank for personal use?
What is the benefit of Decision in Principle?
A Decision in Principle makes it easier for the customer to start 'shopping' for a home. It gives the customer a clear idea of what his budget is and he can show it to estate agents to prove he is a serious buyer.
What factors are taken into account when you apply for a Decision in Principle?
Factors that may be considered include:
- debts, missed payments or arrears
- lack of consistency and discrepancies in your file
- not meeting your lender’s specific criteria
How long does a Decision in Principle last?
This will be decided by your mortgage lender, however, they typically last anywhere between <60 to 90 days.>
What happens after a customer receives a Decision in Principle?
Once the customer has found someplace he likes, he may wish to make an offer on the property – up to the maximum value he can afford, based on the Decision in Principle.
Customer must then go back to his mortgage lender and make a full mortgage application. If everything is satisfactory, his lender will make an official mortgage offer.
The official mortgage offer tells the amount the customer can borrow from his lender for his chosen property. The mortgage lender will send a copy of his mortgage offer to his solicitor or licensed conveyancer.
Why might the customer's mortgage offer differ from his Decision in Principle?
This is typically because of the results of the affordability assessment or mortgage valuation. So, for example, if the value of the property is lower than his Decision in Principle.
What is HomeSmart/-i?
HomeSmart is a revolving home loan facility with a straightline repayment schedule that is flexible and offers potentially higher interest savings.
It is for financing new properties (under construction or completed), sub-sale and refinancing.
What are the benefits of HomeSmart/-i?
HomeSmart allows customers to deposit more than the actual instalment amount and to withdraw the excess payments, so long as it is within the facility term and limit. Interest is calculated on the outstanding facility amount, so if customers prepay more than their instalment, the interest is lower.
What is the minimum and maximum loan tenure?
The minimum loan tenure is 5 years. The maximum is 35 years or up to 70 years old, whichever is earlier and is subject to the bank's discretion.
What is the interest rate?
The HomeSmart interest rate is pegged to the Standardised Base Rate (SBR), which is aligned to Bank Negara Malaysia's (BNM) Overnight Policy Rate (OPR).
What is the minimum and maximum loan amount?
The loan amounts are from RM50,000 to RM5,000,000.
What fees and charges do I have to pay?
- Stamp Duty
As per the Stamp Act 1949 (Revised 1989).
- Legal fees and disbursement fees
- Legal fees (and applicable tax, if any).
- Disbursements including fees for registration of charge and other related charges.
- Monthly service fee
Monthly fee of RM10 (and applicable tax, if any) for the term of the loan.
- Commitment fee
RM40.00 per month will be charged if the average utilization rate (average outstanding balance divided by current month facility Limit) for the month is less than 50%. This commitment fee will only be applied (if applicable) upon full disbursement of the facility or upon first repayment of monthly instalment, whichever is earlier. When applicable, it only applies for the period of 5 years from the date of full disbursement or first monthly instalment date, as the case may be.
Can customers prepay or redraw from the facility?
HomeSmart allows customers to prepay and redraw the prepayments at any time. The redrawal amount depends on the available HomeSmart facility limit and tenure. Customers do not need to give notice to prepay or redraw, and there are no charges for redrawal.
The HomeSmart account comes with a cheque book and ATM card and be accessed online and via mobile banking.
Can customers make early settlement?
Customers can make early settlement and redeem the loan by giving the bank 1 month's written notice. If the loan is within the lock-in period, there will be early settlement charges.
How to apply?
Through our website, the contact centre or the nearest HSBC Bank or HSBC Amanah branches.
What are the documents required?
- A photocopy of your identity card or passport
- Latest 3 months' salary slips
- Latest income tax return form (Form B/BE) or EA form or latest EPF(Employees Provident Fund) statement dated within last 12 months
- If new salaried employees (at least 3 months in service), Letter of Appointment or Confirmation letter from employer stating salary/allowances
- Sale and Purchase Agreement/deposit or booking receipt/letter of offer from the housing developer
- A photocopy of the land title (if any)
- The latest bank statements dating back 6 months (compulsory in the absence of salary slips and/or EA Form) showing salary/payment credited to the account
- For self-employed, to provide business registration documents, latest 6 months bank statements, latest financial statements and other supporting documents.
How can I work out the estimated instalment amount?
From our sales personnel.
How much can I borrow?
The maximum margin of financing is 90% of the current market value/net purchase price, whichever is lower and is subject to credit evaluation by the Bank.
Can I apply for a top-up facility for personal use?
Existing home loan customers who have a good 12-month repayment track record may apply for the HomeSmart Reserve for a top-up facility. The loan amounts are from RM20,000 to RM2,000,000. The maximum margin of finance is 90% of the current market value and is subject to credit evaluation by the Bank.
If I have a property that is not charged to any bank, can I charge it to your bank for personal use?
Yes, you may apply for our HomeSmart Advantage which is for completed and unencumbered properties only. The amounts are RM50,000 to RM2,00,000. The maximum margin of finance is 90% of the current market value and is subject to credit evaluation by the Bank.