Home loan

What are the different types of HSBC Mortgages?

There are two different types of HSBC Mortgages:

Home Mortgage Loan (HML) Purpose:

  • Purchase of owner-occupied residential property. Occupants may include applicant(s)’ immediate family: spouse, children, parents, siblings, in-laws.
  • Refinance of residential mortgage with another financial institution (you have an existing home loan with another financial institution, and you will transfer the loan to HSBC)
  • Construction on / renovation of / addition to existing residential property
  • Reimbursement of purchased property

Home Equity Loan (HEQ) Purpose:

  • Multi-purpose loan
  • Refinance of a previous loan from another financial institution used for personal expenditure or for investment
  • Loan proceeds will be used for purchase, renovation or construction of a secondary residence which is different from the loan security

How much can I borrow?

Below are the minimum and maximum loan amount based on current HSBC policy:
Loans Minimum
Maximum
HML PHP700,000 PHP50 million
HEQ PHP700,000 PHP30 million
Below are the minimum and maximum loan amount based on current HSBC policy:
Loans HML
Minimum
PHP700,000
Maximum PHP50 million
Loans HEQ
Minimum
PHP700,000
Maximum PHP30 million

However, the amount you may avail will depend on the following criteria:

  1. Loan amount you applied for
  2. The value of the property which will secure the mortgage. This is also known as Loan-to-Value (LTV) Ratio explained below.
  3. Your paying-capacity which will be evaluated by the Bank

The lowest amount based on the 3 criteria is what you may avail, subject to final approval of the Bank. You may also visit our website www.hsbc.com.ph for access to our Home Loan Calculator.

How long do I need to pay the loan (full life of the loan)?

Below are the minimum and maximum loan tenor based on current HSBC policy:
Loans Minimum Maximum
HML 12 months 240 months*
HEQ 12 months 120 months*
Below are the minimum and maximum loan tenor based on current HSBC policy:
Loans HML
Minimum 12 months
Maximum 240 months*
Loans HEQ
Minimum 12 months
Maximum 120 months*

*or up to client age 65 (upon loan maturity), whichever is earlier Please note that loan tenors are subject to final approval.

What is Loan-to-Value ratio?

Loan-to-value ratio (LTV) is used to determine the maximum amount that the bank can loan to a client against the value of the collateral/property. This is anywhere between 60% to 80% maximum of the appraised value or selling price of the collateral/ property, whichever is lower. The LTV may change from time to time and vary depending on the particular Home Loan product being availed, purpose, currency of loan etc.

  • HML: Up to 80%
  • HEQ: Up to 60% 

What is the difference between a repricing period and a loan tenor?

Loan Tenor is the full life of the loan within which you will be paying the monthly amortizations. In HSBC, maximum loan tenor is 20 years for Home Mortgage Loan and 10 years for Home Equity Loan.

Repricing Period is the fixing period of your interest. Available repricing periods are quarterly, 1 year, 2 years, 3 years and 5 years which offer different interest rates per repricing period.

 

For example:

A client was approved for a 10 year loan with a repricing period of 5 years. Although the client’s approved loan tenor is 10 years (the full life of the loan), the interest rate is fixed for only 5 years. On the sixth year, client’s interest rate will change based on the current roll-over rate of his chosen interest fixing period.

HSBC Home Loan Summary

We prepared a summary on HSBC Home Loan on areas of Key Terms, Tariff and Frequently Asked Questions to give you a comprehensive understanding.

Personal loan

Why should I apply for an HSBC Personal Loan?

  • Fast Approval – upon submission of complete requirements, it will only take to 3 - 5 banking days to know the result of the application
  • Convenient Payment Channels – Access hundreds of HSBC payment centers nationwide

For what purposes can the money I borrow be used for?

You can use the money for various personal needs such as for tuition, hospitalization, car upgrades and bill payments.

What are the different loan terms I can apply for?

The available loan terms are: 6 months, 12 months, 24 months and 36 months.

What is the minimum / maximum loan amount that may be granted to clients?

  • Minimum: PHP30,000
  • Maximum: PHP500,000 or 3x monthly gross salary, whichever is lower

Please note that the loan amount to be granted will be subject to the bank's credit review and final approval.

What is the interest rate?

You can view our updated interest rates in the loans section.

Personal loan (Employee Privilege Plan)

Who is eligible to apply for an HSBC EPP Personal Loan?

To be eligible you must:

  1. Be a permanent resident of the Philippines for at least 3 years in any of the areas where the EPP Company maintain offices
  2. Be above 21 but below 60 years old upon loan maturity
  3. Have a minimum gross monthly income of:
    1. PHP10,000 for applicants in Luzon and Metro Manila
    2. PHP8,000 for applicants in Visayas and Mindanao
  4. Must be a regular employee of the EPP Company
  5. Have any 2 of the following: Residential landline, Office landline, Mobile Phone Number

What is the minimum / maximum loan amount that may be granted to clients?

  • Minimum: PHP10,000
  • Maximum: PHP1,000,000 or 6x monthly gross salary, whichever is lower.

Please note that the final loan amount to be granted is subject to approval.

What is the interest rate?

Please contact your HR personnel or your Relationship Manager for the updated interest rates. We will provide you the effective interest rates applicable.

What will be my monthly repayment?

Your monthly repayment will be dependent on the approved amount and tenor of your loan. Interest shall be computed based on the outstanding balance of the loan at the beginning of an interest period. An amortization schedule and disclosure statement will be provided upon loan drawdown.

What are my payment options?

Salary deduction.

What are the applicable fees?

  • Documentary Stamp Taxes: PHP1.00 for every PHP200.00 of loan drawn for loans over PHP250,000 and/ or loan purpose is for business use.
  • Amendment Service Fee: PHP500 for any adjustments made (after loan drawdown) on the account terms (i.e. loan amount, tenor, rate, change of payment method, change of due date)
  • Overdue Interest Charge: 36% per annum on all overdue instalments.

How these charges and fees affect your effective interest rate will be explained in full to you by the relevant account officer.

How can I apply for an HSBC Personal Loan?

You can apply for an HSBC Personal Loan by following these easy steps:

  1. Fill out and submit your application form (You may contact your Relationship Manager for access to application form)
  2. Submit all the requirements together with your application form through your HR personnel or your Relationship Manager.

What supporting documentation do I need in order to complete the HSBC Personal Loan application?

  • Photocopy of their valid Gov't ID indicating the date of birth and nationality (ID and picture should be clear) (Details, picture and signature should all be clear)
  • Latest Income Tax Return (ITR)2316 or any valid ITR alternative
  • Signed 3-in-1 EPP application form
  • Signed Terms and Conditions with Global Consent Form

I've applied for an HSBC Personal Loan, how can I check on the status of my application?

For the status of your loan application, please call our CEPS-EPP Customer Service Hotline at (02)8672-6463.

How long is the processing of loan applications?

Loan processing would normally take 3-5 banking days upon HSBC's receipt of completed application forms and documentary requirements.

How quickly will I receive the funds if my loan is approved?

Releasing of loan proceeds would customarily take 2-3 banking days upon successful phone verification.

How can I access my loan proceeds?

A Manager's Cheque/ Cashier's Order will be issued under your name and will be delivered to your Human Resource (HR)/contact person by your Relationship Manager or by our accredited courier. Your encashment of the check shall also be deemed as acceptance of the terms and conditions of the loan agreement and its corresponding promissory note.

Can I access my loan account online?

Yes. If you are an existing online banking client, your new loan will be linked automatically to your current online banking account. If you are having trouble viewing your new loan account, please call our Customer Service hotline at (02)8858-0000.

If you are not yet registered to our internet banking and you have an existing bank or credit card account, you may register by using your Phone Banking number or credit card number or ATM/debit card primary account number.

What will happen if I resign from the Company?

You may apply for conversion of your loan into a regular personal installment loan within thirty (30) days from the date of the Bank's receipt of a notice of your resignation/separation from the Company. Once approved, your loan interest rate will be adjusted to the prevailing commercial interest rate.

Please note that the conversion of your loan into a regular personal installment loan will not affect the right of the Bank to receive amounts from the Company in accordance with the Debit Authority you signed to effect partial or full payment of your loan with the Bank.

Asset link

Who is eligible to apply for an AssetLink?

All HSBC Advance and HSBC Premier Clients are eligible to apply for an AssetLink. Please note that non-residents are eligible for foreign currency loans only and may be subject to a different set of requirements.

What are the different loan terms I can apply for?

The bank offers loan terms of 1 month as minimum up to a maximum of one year.

How much can I borrow?

Minimum:

  • PHP80,000 (For HSBC Main Bank Clients)
  • PHP40,000 (For HSBC Savings Bank Clients)

Maximum: 

  • PHP20 million (or its equivalent in foreign currency)

What is the interest rate?

Please visit your branch of account for the updated interest rates.

What will be my monthly repayment?

Your monthly repayment will be dependent on the approved amount and tenor of your loan. Interest shall be computed based on the outstanding balance of the loan at the beginning of an interest period. An amortization schedule and disclosure statement will be provided upon loan drawdown.

What are my payment options?

Payments are via Auto-Debit Arrangement (ADA) Facility.

What are the applicable fees?

Processing Fee: PHP2,500 (waived provided the loan is outstanding for 6 months) 

Documentary Stamp Tax (DST): PHP1.50 for every PHP200.00. Payable upon drawdown and may be debited from the drawdown proceeds.

How often do I have to make repayments?

Payment for your AssetLink account is on a monthly basis. You are required to pay for the interest on a monthly basis. You have the option to pay the loan principal at the end of the loan term, or on a monthly basis together with the interest payment.

How can I apply for an AssetLink?

Please visit your branch of account for AssetLink application. For Premier clients, you may contact your Relationship Manager.

What documentation do I need in order to complete an AssetLink application?

Basic required documentation:

  • Application Form
  • Signed Terms and Conditions with Global Clause Consent Form
  • Notarised Promissory Note/Disclosure Statement
  • Deed of Assignment
  • Latest copy of the Income Tax Return (ITR) or BIR Form 2316 (W2) or documents allowed by BSP (Bangko Sentral ng Pilipinas) in lieu of ITR may be required unless otherwise specified by local regulations.
  • Foreign Currency Declaration form (if security, ALN line, or both is/are in foreign currency)
  • Proof of marital status (for widow/divorced where spouse will not sign for marital consent)

Additional supporting documents may be required depending on the security. Please visit your branch of account or contact your Relationship Manager for more information.

I've applied for an AssetLink, how can I check on the status of my application?

For the status of your application, you may visit your branch of account. For Premier clients, you may contact your Relationship Manager.

How long is the processing time?

Processing time for your AssetLink depends on the type of security. You may get in touch with your branch of account or Relationship Manager for more details.

How quickly will I receive the funds if my loan is approved?

Your account will be credited 1-2 banking days after loan approval.

Are there any fees if I pay out my AssetLink early?

There are no pre-termination fees if you decide to pay out your AssetLink early. However, a processing fee of PHP2,500 will be charged to your account if you decide to close your AssetLink line within 6 months upon approval.