Anyone sign up for this?

I would like to ask a few question.

1. Do you guys calculate how much principal they deducted every month?
The statement doen't shows.

I was searching for HSBC Homesmart ... bumped into this post.

Just wondering, if anyone mind to share his/her experience for this package?

And did you manage to check on the monthly principal deduction amount? I think this is crucial and part of the selling point for Homesmart.

Hope to hear from you soon.

starting 1st 5 years, the amount u pay, 60-70% is for interest


This post has been edited by ETEAM TRADING: Jan 1 2010, 05:49 PM

You're given an account with the loan amount, together with a cheque book to issue payments and atm card to withdraw money.

The loan amount reduces every month, based on your tenure (e.g. 20 years, 30 years, etc) and repayment.

It works like an overdraft, where you're charged interest (daily rest) only for the money that you use - otherwise it's just RM10/mth admin fee.

You can pay any amount at any time - even in full, without prior notification. Of course, if you close the account within the lock-in period there'll be a penalty (1~2% of the loan amount) or you can just leave the money there as emergency cash.

I think HSBC HomeSmart and SC MortgageOne are the most interesting Loan package in the market which could help us to save alot because of the current account,overdraft facility and daily rest calculation. The only RISK here is if the BLR goes up.

the techniques of thes type of loan packge(they call it flexi-loan) if you sign up are.

1. 1st of every month, dump all your salary into the current account as it will help to reduce interest because interest calculate daily.

2. 2nd - 30 or 31st - all your expenses i.e food,cigar,petrol,utility bill,car loan, edu loan etc, withdraw from this current account using the overdraft facility, your home loan also would be deducted from this account.

3. 1st of the following month repeat the step 1 and 2.

the more cash you have the better to dump in the current account.
The steps above also can be maximised by credit card, since credit card have 20 days credit without interest, use this credit card for your living expenses for 20 days without touching you cash in the current account to save interest. But make sure pay the credit card before the due date and utilise it again after u paid.

I think the loan is most beneficial for businessmen because of their non-fixed monthly income.

It's also fantastic to avoid scrutiny from LHDN because you can almost buy a house with cash, e.g. take a 90% loan this month and then pay in full the next month. It'll still show that you have a 30-year loan but you're paying 0% interest.

It's even more interesting when you think how those making illegal money (e.g. loan sharks and illegal betting) can "clean" their money this way too.

what is the advantges of this loan compared to other flexi loan that available?? One that i know is no need to give notice to the bank if want to do prepayment and withdrawal

I'm not very sure about how the calculation goes, but it varies slightly every month due to the oustanding balance you have in your account. This is not specific to Homesmart, but I guess to most flexi-loans.

1. Calculate the interest accured over the period for 1 year, and divide that by 365/366 days to get daily accured interest.

Eg. Your interest rate is 4%. Your current oustanding balance is Rm 100,000. 4% pa of interest for 100,000 would be 4000. Divide that by 365 days (366 for leap year) would be 10.95.

2. Let's say for month Jan, 31 days. By the end of Jan, you have a total of 10.95 x 31 = 339.45. Your number of days might vary depending on when they actually debit the interest.

3. If you dump in monthly 1000 as your instalment, 339.45 will be deducted as interest first, and the rest will be principal. In this case, the principal paid would be 1000-339.45 = 660.55.

Since the interest is calculate based on daily rest, you would need to rinse and repeat the whole process every time you make a instalment as the oustanding balance will change.

I'm no banker but this is what I can come up with, with common sense .

Anyway, double check with the bank if you decide to put in extra money whether the money will be used to deduct principal automatically, or remain parked in a "suspend" account which would be credited into the next following month, thus not reducing any interest at all.

HI.

HSBC offer me -2.05% for home loan. 30 years

It's good result..

you mean BLR-2.05%? how much is your loan amount?

Wow, how can u get so high? 2.05% is so high? Is this a fixed one rate all along your tenure? Or u get those package like 1st two years -2.05%, then follow by -1.55% for 3-5th year. On the 6th years, is fixed at -1.9%?

Wowo....that is quite high!

How did u get that? Wht is ur loan amt?

The fella that quite me also BLR -1.90% only

Nowadays the BLR is fixed from BLR -1.8% and -1.9%. Dunno is the bank pakat or not cuz now bankers also say that all banks will go down to 1.9% max. There's no more BLR -2.2% anymore. There's no more ZEC/ZMC too it seems. Some tell me is a instruction for BNM on this matter.

olitabin: if you get -2.05% for whole tenure, that's a pretty good deal! Is yours Zec/zmc with MRTA? That's a good rare deal!

I'm using HSBC homesmart and i would say i'm happy with it despite RM10 per month maintenance. Overall, it's fully flexi so you don't have to give notice for withdrawal and can withdraw from as low as RM10 with multiple of RM10. You can deposit extra if you had and for me, it's basically the same as other mentioned, received pay everyone and allocated all into HSBC with some small buffer in other account. All payments made via credit card as you got 20days credit. Then paid through via your HSBC Homesmart. It's also a good thing to dump all your savings into it as if you have saving in other accounts, eg FD, the interest gain will be subject to tax while if you allocate it on your HSBC it reduces the interest payable and thus not showing any interest income.

try citibank. same features as well.

hi,

i plan to use HSBC smart loan as well due to its flexibility in reducing the principal amount with no restriction on additional installment. However there are 2 things that concerns me.

1) Loan/Lawyer fees are surprisingly high as compared to other banks though i have no personal experience on this as soon to-be-purchased house is our first house.

2) Local bank e.g: RHB said they also have felxi loan with restriction of additional top up amount of 1000 or 2000 or 3000, etc.. else their system will not be able to catch the amount to reduce the principal. However, i was told by HSBC officer that local bank doesn't really have flexy loan, what they have is term loan. well i am confused now.

anyone knows about this?? TQ

1) How high they quote you for the legal fee? Sometime it's not the actual final charge as the bank may quote you higher at 1st. If at the end the total bill is lesser, the remaining balance will be bank in back to you.
And also you may always use any lawyer you prefer as long the lawyer is HSBC panel lawyer. So that you can control the charges.
Pm me if you need some lawyer contact.

2)There is too many bankers out there keep telling clients that thier loan package is flexi while IT'S NOT FLEXI loan at all. They just fooling around to get the deal done.
Those top up payment that need to be multiple of XXX or need to inform bank to do top up,ALL 100% not FLEXI loan. It's only normal term loan. Back to 10-20years back you also can top up XXX amount to reduce principle as you wish if you inform/write in to the bank. No different from what your RHB's banker told you as their 'flexi loan'.

Current market only have semi-flexi or full flexi loan that no require inform/write in to perform top up. HSBC HomeSmart is one of the full flexi loan available in the market.

hmm....HSBC can get BLR - 1.9 above ka? maybe i'll drop by..im just worried they will undervalue the property since i dont have a local HSBC attached near the place that i want to buy..

maybank currently offer me 4% 1st 3years...then whole tenue BLR-1.9............

pilot .. check pm if the bank intro suits u with higher % compared to 1.9 ?

tomorrow some hsbc lenglui is coming to my office to story everything i just send a inquiry at their website...reason - wanted someone near my office/a branch that is easy for me... although they are not local in seri kembangan!