Flexi Home Loan: HSBC HomeSmart and Amanah HomeSmart-i
As mentioned in previous post, Applying Home Loan – Tenure does not matter, I will share what are the flexi home loan package available in the market.
HomeSmart is a conventional loan by HSBC that offers flexilibity in depositing and withdraw excess payments. You could also depositing your entire monthly salary into the loan account and make withdrawal similar to your saving account whenever you need the money. With the daily interest calculation, you can save on the interest and pay off your home loan much earlier.
Feature to highlight is the ‘HomeSmart with Step-up’. HomeSmart with Step-up is only available for salaried individuals aged 40 and below that applied for a new purchase of property. The monthly instalments starts with 20% lower than usual for the first year and gradually increase to match your projected income.
There is monthly service fee or RM10 for this home loan account. If you could consistently depositing your salary and extra payment to the loan account, the fee does not an issue.
HomeSmart-i is a home loan product under HSBC Amanah that offers flexibility to make prepayment and withdrawal on excess payments anytime without notice or charges. This is the same as conventional HomeSmart. As an Islamic product, the home loan is based on the principle of Dimishing Musharakah. As explained in HSBC Amanah website, Diminishing Musharakah means, “The Customer and the Bank will be in a partnership to purchase a property. The Bank’s share of the property will diminish over time during the tenure, while the Customer’s share of the property will increase at the same time as a result from the monthly payments to the bank. Ultimately, the Bank will transfer the full ownership of the property to the Customer at the end of the facility or upon early settlement by the Customer, whichever is earlier.”
Similar to saving account, HomeSmart-i also featuring banking convenience via ATM and internet banking. Additionally you also can request for cheque book, which does not have in saving account. Other key features are financing period up to 35 years or until age 65, whichever is earlier, and lock in period of 5 years.