HSBC offers portability in benefits for its home loans

HSBC is shaking up the home-loans market here by offering a so-called benefits portability feature in such loans.

It is enabling its home loan customers who sell their property to continue from where they left off on the sliding interest rate spread on their new home loans.

For example, if a customer sells the property in the third year of the loan, he can enjoy a first year loan interest rate of 1.69 per cent on the new property.

Subsequently, he can continue to enjoy the year-on-year decrease in interest rate spreads offered by his original loan package with HSBC.

HSBC said the portability feature allows customers to continue enjoying the declining interest rate spreads on their loan package, even if the property financed by the loan changes.

It is offering the portability feature for its SIBOR pegged loyalty and relationship-based home loan packages.

The ability to bring over the benefits is billed as a first in the market and aims to reward customers for staying with the bank.

Source : Channel NewsAsia – 21 Jul 2009

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