Fixed Interest Rate Home Loan

Low, fixed and friendly

When taking out a Home Loan it is important to give some consideration to the effect that interest rate changes will have on your budget. With a Fixed Interest Rate Home Loan the interest rate will remain the same during the fixed rate period.

Fixed Interest Rate Home Loans are usually available as an offer and for a fixed term. The bank will issue such offers from time to time, with each offer having different rates of interest and duration. At the end of the fixed rate period your loan will be converted to a variable interest rate, unless you decide to opt for a new fixed rate if available.

Features

• Enables you to fix your interest rate for a period of time during which the repayments remain constant.
• At the end of the fixed rate period you will usually be offered a further fixed term. If not, your Home Loan will switch to our variable rate.
• A six-month drawdown period is allowed with the possibility of extending this period by a further three months at a fee.

Product Terms and Conditions

• Once your application has been agreed, you will be charged a booking fee.
• Overpayments can be made without a charge, as long as the additional payment does not exceed 20% of the regular monthly repayment.
• If you repay the loan before the fixed rate period has ended, you will be charged an early repayment fee.

All existing and new Home Loans are eligible to opt for a Fixed Interest Rate Home Loan. Some restrictions may apply.

A home loan decision in 48 hours!

We guarantee a decision by the next working day subject to you submitting all the documentation required. This is our promise. At HSBC we pride ourselves with the speed and quality of service and we pledge to pay €120 if we don't get back to you within 48 hours.

Early repayment fees

We will always let you over-pay your monthly repayment on your variable interest rate Home Loan, free of charge. Overpayments on a fixed interest rate Home Loan can also be made without a charge as long as the additional payment does not exceed 20% of the regular monthly repayment.

How much will we lend you?

The home loan we recommend will depend on:

• Your individual circumstances
• The value of the property you want to buy
• Your income

In general you can borrow up to 90% of the valuation or purchase price of the property, whichever is the lower. You can also borrow an additional 6% of the purchase price of the property to meet contract related expenses (stamp duty and notarial fees).

Income

• If you are a single person or a family with a single income, you can apply for a home loan that is 4 times your gross annual income.
• If you are a couple you can apply for a home loan that is 3.5 times your joint income. Alternatively, you can apply for a loan that is 4 times the higher income plus the partner's income.
• As a maximum, the repayment on your home loan should not exceed 30 % of your gross income.

Life Assurance

It is essential that you have adequate life assurance to ensure that your home loan is repaid in the event of death. If you wish we can provide a life policy to suit your needs. HSBC Bank Malta p.l.c. is a sub-agent of HSBC Life Assurance (Malta) Ltd., which is authorised under the Insurance Business Act 1998 to carry on long term business of Insurance.

Your next step

When you eventually find your ideal property, you will have to arrange with a notary for a preliminary agreement to be drawn up. At this stage you may have to pay an agreed percentage of the purchase price. Normally this is up to 10%.

We recommend that you now go to your branch to complete the loan application. In this way you can receive the formal letter of loan approval at the earliest. Give this to your notary to make the necessary arrangements for the publication of deed.

Documentation required

For a loan enquiry:

• Recent payslip
• Purchase price and / or estimate of cost

For a loan application:

• Recent payslip or FS3
• Architect's / Manager's estimate of the property value on Bank's form
• Character reference, unless applicant is already a borrowing customer of the Bank and/or a holder of a current account
• Photocopy of Identity Card
• Preliminary agreement or deed relating to purchase of property
• In case of request for a re-finance, copy of sanction letter and loan statements for previous 3 years
• Other documentation advised by the Bank

Get a quote now!

• What are my home loan options?
• How much can I borrow?
• What interest rates will apply to my home loan?
• How much will my repayments be?

You may access our Home Loan Calculator which will provide you with information such as the loan amount you may apply for, the interest rate, APR and monthly repayment. All this based on simple information you will be requested to provide.

Through this screen you also have to option to contact HSBC Home Loans via email.

Click here to access the Home Loan Calculator webpage

You may also contact us via email, call Customer Service on 2380 2380 or visit any HSBC branch for more details.

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