Interest Only Home Loan

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The Key to your home

An Interest Only Home Loan is one where the monthly payments cover only the interest on the loan and the capital amount borrowed is paid at the end of the loan.

Benefits of Interest Only Home loan

An Interest Only Home Loan may be used to end-finance the purchase and/or completion of property for use as main or second residence. The property being financed may not be identified also as the eventual source of repayment of the loan capital.

An Interest Only Home Loan may also be used to refinance a loan originally utilised for one of the above purposes.

Loan Amount

Interest Only Home Loans have a maximum loan amount of €600,000. There is no minimum loan amount.

Affordibility

When applying for an Interest Only Home Loan, you will need to discuss the source of repayment of the capital with us.
Your resultant total commitments (i.e. existing financial commitments plus the monthly interest payment) must not exceed 40% of your gross regular income.

Source of Repayment

You will have to indicate to us the intended source of repayment. This may be, for example, the sale proceeds of property or the maturity of an investment.
If you indicate that the loan will be repaid from sale proceeds of property this must not your residence, must be vacant and must be already owned by you at the time of submitting the loan application.

Term of Loan

Interest Only Home Loans may be repaid over a maximum of 5 years and are normally to be repaid by the time you are 65 years old.

Currency

Interest Only Home Loans are available in euro. The rate of interest will be variable and linked to the Bank's Base rate for the respective currency.

Who is eligible to apply ?

Interest Only Home Loans are available if you fit the following criteria:

Have been an HSBC customer for at least a year prior to applying for the loan.
Be a citizen of a EU member state.
Have gross annual income of at least €60,000 (applies for both joint and single applications).
Have net assets of €240,000. Assets are to include only liquid assets or immovable property not encumbered by any pledge or hypothec.

What do I do next?

Simple. If you need further information of how you may avail yourself of our Interest Only Home Loan you may:

call at the nearest HSBC Bank Malta p.l.c. branch
call our Customer Service on 2380 2380
send us an e-mail