this hsbc homesmart plan lying 1 la... i paid the interest from march 2010 for the 1st month,after tat i put all my saving money inside ,its about half of my loan ,but the interest n the every month paying still the same!u say izzit lying us?

interest every month is same or installment every month is same?

It can never be the same. I computed based on my own excel and i got the exact interest charges they charged me. So i can say it's not the same. if interest not the same, monthy instalment shouldn't be the same also.

You check with HSBC.
As far as I know how it works is the interest gets reduced; but principal is the same. So total monthly installment is reduced because of the reduction in interest portion.

Btw, I don't recall seeing "interest" vs "principal" split in HSBC statement.

But from what the bank loan personnel told me, my understanding is the monthly installment is fixed, if the interest charge is reduced because of extra amount of cash in the current account, more portion of the monthly installment will be used to pay the principal, and therefore the loan period will reduced.

Anyone can clarify?

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 personally think its the BEST Home Loan in the Market if you really understand how it works..

A lot of ppl will first look into the "Best / Lowest Interest Rates" in the market...and most of the Conventional Loans will be able to offer Lower rates.

Like I mentioned, though HSBC Rates are not the lowest, if you really study and understand how HomeSmart works..U will save more than those offerring lower rates.

Just my 2 cents

I personally think its the BEST Home Loan in the Market if you really understand how it works..

A lot of ppl will first look into the "Best / Lowest Interest Rates" in the market...and most of the Conventional Loans will be able to offer Lower rates.

Like I mentioned, though HSBC Rates are not the lowest, if you really study and understand how HomeSmart works..U will save more than those offerring lower rates.

Just my 2 cents

Mind to share how it really works for you?? So far all i do to reduce interest is to bank in my pay into this account to reduce the principle.. Still wondering if there is any other way to save money..

Secondly,, I just got a call from HSBC insurance or sumthing.

Izit mandatory for HSBC Homesmart Loan to purchase the Fire Protection Insurance which have to pay few hundred each year??

You don't have to purchase fire insurance from HSBC, but you are certainly required to have one to cover the cost of rebuilding or repayment to the bank in the event such incident happens...  HSBC has to look for someone to recover their $$ in such event, so it is a must to have it..