Everything You Need To Know About HSBC Mortgage

HSBC provides valuation services, offering P plan or H plan. MoneySmart helps you to compare, choose and apply for the best mortgage.

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HSBC Property Valuation

Most of the banks do not have their own valuation department. They usually use the valuation service by a third party company like DTZ, CBRE, Savills, Centaline Property Agency and Lei Shing Hong Limited, etc. to provide valuation services. HSBC only accepts valuation service from Debenham Thouard Zadelhoff (DTZ), therefore their valuation tends to be reserved.

Online Valuation Service

Online Valuation Service doesn’t cover all properties in Hong Kong and the valuation tends to be more reserved. MoneySmart suggests considering valuation from a number of banks or using MoneySmart Property Valuation Calculator.

Property valuation is an important part of the entire mortgage application process. It does not only affect new purchase but also refinance mortgage. Numerous specific factors relating to the building will be looked at for example house prices of recent sales in the area, sales transactions, age, quality, unauthorised building works and building orders (if any). Village houses, old buildings and single private residential buildings usually have a low number of sales transactions, resulting in a low mortgage valuation.

For properties with a lower than expected valuation, MoneySmart suggests:

  1. Requesting banker to get valuations from few more companies. However they may refuse your request. Alternatively, you can apply through MoneySmart. We work with all major mortgage lenders. We can help you to compare, choose and apply for the best mortgage with a higher valuation.
  2. For refinance mortgage, you can directly commission a company for property valuation and submit the valuation report to the bank directly. This approach suits under valuated properties like village houses and old buildings. It may double the valuation price. However, not all banks accept reports like this. It is best to check in advance.

HSBC P Plan Mortgage Rates

HSBC Mortgage Plans Mortgage Loan Size Mortgage Rate Cash Rebate
New Purchase P Plan HK$1,000,000 or above P-2.5%= 2.5% 1%
Refinance P Plan HK$1,000,000 or above P-2.5%= 2.5% 0%

HSBC H Plan Mortgage Rate

HSBC Mortgage Plan Mortgage Loan Size Mortgage Rate Capped Mortgage Rate Cash Rebate
H Plan New Purchase HK$1,000,000 or above H+1.24 P(5%) - 2.5% = 2.5% 1%
H Plan Refinance HK$1,000,000 or above H+1.24 P(5%) - 2.5% = 2.5% 0%

HSBC Fixed Rate Mortgage

Some applicants may prefer a fixed-rate mortgage to avoid the fluctuation of H Plan or P Plan. Although the interest rate of the fixed-rate mortgage remains unchanged for three years, it is usually higher than P Plan or H Plan. Therefore, it is less popular.

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HSBC Applicant Age, Property Age and Property Type

HSBC Applicant Age, Property Age and Property Type

Applicant Age

Mortgage Term=The maximum age a mortgage must be paid off - applicant age. HSBC age limit (i.e. the maximum age a mortgage must be paid off): 75 years old. HSBC maximum mortgage term: 30 years. Example 1: Borrower is 51 years old. 75 - 51 = 24. Therefore, the longest mortgage term, in this case, is 24 years. Example 2: Borrower is 43 years old. 75 - 43 = 32. To comply with the HSBC maximum mortgage term, the longest mortgage term, in this case, is 30 years.

Property Age

Mortgage term= 75- property age HSBC Maximum Mortgage Term= 30 years. Example: Borrower is 50 years old and the property age is 52 years old. The final mortgage term is 23 years instead of 25 years using the 75- property age formula.

Can these properties get a HSBC mortgage?

Property Types Y/N Remarks
New purchase of public housing without premium payment (green form applicants) Y-
New purchase or refinance of HOS flats without premium payment Maybe Letter from Housing Authority required.
New purchase of HOS flats without premium payment (white form applicants) Y-
Refinance of HOS flats without premium payment Maybe Letter from Housing Authority required.
Village house Maybe House viewing required. Right of way requires verification.
Property with building ordersN-

Can I apply for a mortgage only by rental income?

Yes. But not all rental income will be counted as monthly regular income. Please see below for details:

Percentage of rental income calculated as monthly regular income

  • Lease with stamping: 70%
  • Lease without stamping: 60%

For example: If the monthly income of the applicant is HK$20,000 and his/ her monthly rental income (lease with stamping provided). His monthly income will be HK$20,000 + HK$10,000 X 70%, which is HK$27,000.

Should you pay off your mortgage early?

Early mortgage repayment

There are two types of early mortgage repayment. The first one is to pay off the debt completely and the property will become yours. The second one is to pay back the capital to save on some interests. No matter which one you choose, you may be subject to early mortgage repayment fees. In recent years, some banks have shortened the penalty period to half a year or a year. If a borrower decides to repay the debt within the penalty period, a higher early mortgage repayment fees/ interest rates will be incurred. If it is beyond the penalty period, the fees will be a lot less. In the first year of the penalty period, the penalty is 1%+cash rebate and in the second year, the penalty is all cash rebate. MoneySmart suggests negotiating the best penalty period terms before accepting the mortgage plan.

Apply for HSBC Mortgage with MoneySmart

  • Step #1

    Get in touch with our mortgage team

    Applicants can contact our professional mortgage team though our website/ WhatsApp +852 9665 5218

  • Step #2

    Compare HSBC mortgage plans

    MoneySmart will follow up on your enquiry and provide different mortgage plans

  • Step #3

    Apply online with required documents

    Fill in a consolidated application form with MoneySmart to apply for a mortgage with different banks. 👍🏻

  • Step #4

    Check the application form and sign it.

    The bank that you have applied for will contact you directly 📞to collect the necessary documents. Applicants can get in touch with the mortgage department directly for future enquiries.

  • Step #5

    Draw down your mortgage

    We will remind ⏰ you upon successful application and provide you with suggestions and assistance you may need until you have successfully got the mortgage.

Compare all HSBC mortgages

Apply with MoneySmart to get extra cash rebates

HSBC Mortgage Frequently Asked Question

  • What documents are required when applying for HSBC mortgage?

    To apply for HSBC mortgage, proof of identity, provisional agreement for sale and purchase (applicable to new purchase)/ recent 3-month repayment record, current mortgage repayment information, proof of residential address (applicable to refinance), recent 3-month salary record, bank statement and recent tax bill are required.
  • What is building order? Does HSBC impose any restriction on the property with building order?

    When a property is found to have unauthorised building works by the Housing Department, a building order will be issued, which demands the property owner to get it removed in a given time frame. HSBC will not provide mortgages for properties with building order.
  • Can I apply for a mortgage without a fixed income? Can I apply with my asset instead?

    In general, self-employed applicants are required to provide 6-month of bank statement as income proof. Applicants can also apply through Asset Based Lending using properties, cash, stocks, bonds, etc but not a certain percentage of the total assets will be calculated.
  • Can I apply for a mortgage without a tax bill?

    HSBC does not accept mortgage application without a tax bill. Applicants can consider applying through Asset Based Lending (ABL) if he/ she has more assets.
  • Can I apply for a pre-approved mortgage?

    If worried about increasing interest rate or increasing capped interest rate, a property owner may consider applying for a pre-approved mortgage but many banks including HSBC does not accept pre-approved mortgage.
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