HSBC bares unique home loan package

After offering a series of home loan campaigns to signal its plans to expand its personal banking business in the Philippines, HSBC launched recently a new home loan package which combines low interest rates with a number of key benefits seen to be most desired by aspiring homeowners.

HSBC's new home loan offers interest rates as low as 11 percent per year, currently one of the lowest in the market. The package also includes a wide range of repricing and repayment options, with fixed rates ranging from quarterly to five years as well as a choice between monthly or semi-monthly payments.

With very tight competition from banks trying to price as low as possible, HSBC viewed pricing as a very important feature but pointed out that this is not the only requirement to make a home loan package attractive.

"Pricing may be one of the major determinants for choosing a home loan package -- and we have tried to make our rates one of the most competitive at present. But we felt that pricing alone does not constitute an attractive home loan package. We have tried to add value to the traditional, genetic home loan by putting together the best features of the existing home loan packages available in the industry," said Peter Yeates, senior vice president for personal banking.

HSBC, which commits to a seven-day approval period, has also arranged for mortgage redemption insurance and fire insurance coverage for free for the first year.

A redraw feature, wherein customers are allowed to make additional repayments four times a year with an option to re-avail of the funds in the future, is also available.

HSBC's home loan is a personal finance product which allows consumers to purchase a completely-built house, townhouse or condominium. It allows the consumer to borrow up to 70 percent of the value of the house, for payment terms of up to 20 years.