Smart Mortgage

Smart Mortgage programme, offering customers the means to reduce interest expense on their home loan and a speedy way to pay off their mortgage.

Smart Mortgage uses the balances in a customer's designated savings account to reduce the overall level of borrowing for the purpose of interest calculation, thereby reducing the amount of interest the customer actually pays. Smart Mortgage does this by combining customers' savings accounts with their mortgage repayment accounts.

Smart Mortgage allows mortgagers to payoff their mortgages more rapidly. The regular repayment behaviour remains unchanged. With reduced interest payments, this means more of the regular repayment each month goes to paying down the principal. This arrangement enables Smart Mortgagers to payoff their home loan more quickly than a conventional mortgage arrangement.

In addition, the bi-weekly repayment scheme offers even more savings. By splitting the same monthly payment into two and paying bi-weekly, Smart Mortgagers can save even more on interest payments.

Product Features

• Bi-weekly repayment
  This allows mortgagers to save even more on interest payment while keeping the same monthly payment amount.
• Offest function
  Smart Mortgage allows the available balance in the designated savings account to be used for offsetting the outstanding loan amount on a daily basis for calculating the loan interest accruals.
• Loan life preferential interest rate
  HSBC Smart Mortgage offers the loan life preferential interest rate without any limitation like tier-up pricing during the first few years or preferential interest rate for partial limit only.
• Cash management
  Deposit funding will be much more valuable with the offset feature. Customers will be encouraged to consolidate all available funds and extra cash into the Smart Mortgage associated savings account.
• Accelerated pay-off and interest savings
  While keeping the regular repayment schedule, Smart Mortgage will reallocate the interest/principal payable split, enabling additional principal repayment. As a higher proportion of each regular installment is allocated to repayment of principle through interest-offsetting features, customers can save more interest and shorten the tenor of their loan under the same regular repayment schedule.
• Investment opportunity
  With the benefits of interest savings and shortened tenor, customers will be able to take advantage of different investment opportunities.
• Tailor-made solution
  Smart Mortgage can be further bundled with existing products and features available to installment mortgages such as bi-weekly repayment schedules and a combined mortgage and adjustable rate mortgage pricing scheme to create more interest savings and flexibility for investments.

More Benefits

• Enjoy Gold Card or Classic Card fee Waiver
  During the tenor of the loan, the mortgager will be offered a fee-waived Gold Card or Classic Card after the loan is approved.
• Professional mortgage consulting
  HSBC offers customers not only innovative mortgage products but also professional mortgage consulting. A mortgage arrangement will be tailored to fit the financial circumstances of each customer to find him/her the best mortgage interest saving solution.
• Free PowerVantage account and dedicated ATM card let you conveniently manage all your finances
  With any HSBC Mortgage account, customers can enjoy the convenience of PowerVantage, a one-stop financial management product that offers a range of services and products including cash management, investment, credit card and professional financial consulting services. In addition, a dedicated ATM card allows customers to withdraw cash from island-wide ATMs free of transaction fees. Lastly, customers can access PowerVantage through HSBC's 24-hour Integrated Telephone Banking service, or visit online@hsbc.

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