Ravi Chandran
Whether you are looking to invest or refinance your Australian property, you can now seamlessly finance it locally with the new HSBC International Mortgage. Exclusively for residential properties in Adelaide, Brisbane, Perth, Melbourne and Sydney, you can now enjoy:
- Option of AUD or SGD financing
- Loan tenor of up to 30 years
- Loan amount of up to 70% (for AUD loan) and 60% (for SGD loan) of purchase price or property value, whichever is lower
HSBC Singapore said on Tuesday that it is hoping to tap on the growing number of Singaporeans who plan on buying investment properties abroad with the launch of its first overseas mortgage solution – HSBC International Mortgage. Besides the 5 Australian cities, other overseas destinations to be added over time, said the bank. Successful applicants will get HSBC Premier status, which gives them access to a relationship manager in Singapore and Australia to facilitate the process, the bank added.
TALK TO A LOAN CONSULTANT ABOUT REFINANCING YOUR AUSTRALIAN PROPERTY WITH HSBC INTERNATIONAL MORTGAGE
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“We went with Australia as the first market for this solution given the close affinity that Singaporeans have for the country on the back of their business, education, holiday or familial ties. as a result of business, education, holiday and familial ties,” Ranojoy Dutta, head of Retail Products, HSBC Bank (Singapore), said.
According to Knight Frank’s 2018 Wealth Report, Australia was the second-most popular destination for prime property purchases among wealthy Singaporeans. Real Capital Analytics data showed that Singapore’s real estate investment in Australia grew 141 percent in 2018 to $3.5 billion, despite skyrocketing property prices,
Announcement of HSBC International Mortgage comes as several Australian lenders are clamping down on home loans to foreigners as concerns about housing market down under mount. Rising demand, especially from China, has triggered concern that Australian residents are being priced out of the property market.
Westpac for example, said in late April that it will no longer lend to offshore customers who are not citizens, or who do not hold appropriate residency visas. And since early May, the bank followed up with a formal demand for payment from some customers, reminding them of the terms of the facility.
About 300 of Westpac Singapore’s customers were notified that the bank would unwind its mortgage loan portfolio. The decision to unwind its mortgage loan portfolio will affect properties in Australia and New Zealand.
Westpac Banking Corp is of Australia’s oldest and second largest bank, and its Singapore office is Asia’s headquarters. According to Business Times, the bank gave its customers six months (till end September) to repay or refinance the loans within this time period.
Westpac’s decision to unwind its mortgage loan portfolio comes after bank posted its worst half-year profit since 2013. It was reported in early May that the bank posted its second lowest half-year profit since 2013, as interest income shrank along with the housing market, and costs increased as the bank compensated some of its customers for mishandled services.
Analysts noted that there was no sign that Westpac would see a rebound in profits in the short term, and that falling housing demand, tightening credit standards and greater competition from non-banking sector, will constrain the bank’s performance.
They added that the weakness in the housing market, as well as increasing numbers of borrowers rolling-off interest only loan into principal and interest, is resulting in a rise in mortgage delinquencies. The proportion of borrowers at least 30 days behind on their mortgage loan in Australia has risen from 14 per cent in September to 159 per cent at the end of March.
HSBC in highlighting its “Beyond the Bricks” report from 2018 said one-third of high net worth Singaporeans have overseas property investments, and that 70 per cent plan to buy investment properties abroad.
Exclusive promotional interest rate for HSBC International Mortgage
As HSBC’s valued customer, you will be offered an exclusive promotional interest rates when you take up an International Mortgage (for Australian property only) with HSBC.
| Loan currency | Interest rate |
| SGD loan | 3M SIBOR# + 2.28% throughout loan tenor (indicative 4.16% as at 1 Aug 2019) |
| AUD loan | 1M AUD VLR+ + 2.18% throughout loan tenor (indicative 3.19% as at 1 Aug 2019) |
Eligibility:
- Singapore Citizens / Permanent Residents or Foreigners (Employment Pass holders) residing in Singapore
- Minimum loan size of $200,000 (AUD/SGD)
The minimum income to qualify for this International Mortgage for Australian property is $180,000 per annum. HSBC can provide such loans for foreigners residing in Singapore, whereas other banks cannot. Its Australian dollar loan rate is below 4% – one of the best any lender can provide. But refinance can only be done Singapore dollar to Singapore dollar or Australian dollar to Australian dollar.
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