Frequently asked questions - HomeSmart-i

A Decision in Principle is only a preliminary indication of how likely a customer is to be approved for home financing. It is not legally binding. The purpose is to help the customer to understand what their financing range is likely to be. It gives a customer a clear idea of what their budget is, and they can show it to the estate agents to prove they are a serious buyer.

Some of the factors that we may take into consideration include your income, employment status, credit score or credit history and any existing financial commitments you have.

This will be decided by the Bank. However, they typically last anywhere between 60 and 90 days.

Once you've found a property you like, you might want to make an offer on the property – up to the maximum value you can afford, based on the Decision in Principle.

You must then go back to the Bank and make a full home financing application. If everything is satisfactory, your financer will make an official home financing offer.

The official home financing offer states the amount you can get financing for from the Bank for your chosen property. The Bank will send a copy of the home financing offer to your solicitor or licensed conveyancer.

Yes, the home financing offer can differ from Decision in Principle as the DIP is only an early estimate based on limited checks, whereas the final home financing offer is made once the bank completes full underwriting.

HomeSmart-i is a revolving home financing facility with a straight-line payment schedule that is flexible and offers potentially higher lease rental savings.

It is for financing new properties (under construction or completed), sub-sale and refinancing.

HomeSmart-i allows customers to deposit more than the actual required payment amount and to withdraw the excess payments, so long as this is within the facility term and limit. Lease rental is calculated on the outstanding facility amount, so if customers prepay more than their required payment, the lease rental amount will be lower.

The minimum home financing tenure is 5 years. The maximum is 35 years or until the customer is 70 years old, whichever is earlier. The maximum tenure is subject to the bank's discretion.

The HomeSmart-i lease rental rate is pegged to the Standardised Base Rate (SBR), which is aligned to Bank Negara Malaysia's (BNM) Overnight Policy Rate (OPR).

The home financing amounts are from RM50,000 to RM10,000,000.

• Stamp duty
  As per the Stamp Act 1949 (Revised 1989).
• Legal Fees and Disbursement Fees
  - Legal fees (and applicable tax, if any).
  - Disbursements including fees for registration of charge and other related charges.
• Monthly Service Fee
  Monthly Service Fee of RM10 (and applicable tax, if any) for the tenure of the home financing.
• Additional Rental Charge (utilisation fee)
  RM40.00 per month will be charged if the average utilisation rate of the facility (i.e. average outstanding balance, including any usage of the redrawal facility pursuant to the terms of the redrawal facility, divided by the current month's facility limit) for the month is less than 50% of the facility amount. This rental charge will only be applied (if applicable) for the first 5 years of the facility (i) from the date of full disbursement of the facility; or (ii) from your first monthly payment date, whichever is earlier.

HomeSmart-i allows you to prepay and redraw the prepayments or advance payment at any time, subject to the terms and conditions for the facility. The redrawal amount depends on the available HomeSmart-i facility limit and tenure. You don't need to give notice to prepay or redraw, and there are no charges for redrawal.

The HomeSmart-i account comes with a cheque book and ATM card and can be accessed via online and mobile banking.

You can make early settlement and redeem the HomeSmart-i by giving the bank 1 month's written notice. If the HomeSmart-i is within the lock-in period, there will be an early settlement cost.

You can apply for HomeSmart-i through the bank’s website, or at any HSBC or HSBC Amanah branch.

You will need:

• A photocopy of your identity card or passport
• Your latest 3 months' salary slips
• Your latest income tax return form (Form B/BE) or EA form or latest EPF (Employees Provident Fund) statement dated within the last 12 months
• If you're a new salaried employee (with at least 3 months in service) a letter of appointment or confirmation letter from your employer stating your salary/allowances
• A Sale and Purchase Agreement/deposit or booking receipt/letter of offer from the housing developer
• A photocopy of the land title (if any)
• Your latest bank statements dating back 6 months (compulsory in the absence of salary slips and/or EA Form) showing your salary or payments credited to the account
• If you're self employed, business registration documents, latest 6 months of bank statements, latest financial statements and other supporting documents

Our sales team can give you an accurate figure for this.

The maximum margin of financing (MOF) is 90% of the current market value (CMV) or net purchase price, whichever is lower, and it's subject to the Bank's evaluation of your credit record.

Existing home financing customers who have a good 12-month payment track record may apply for the HomeSmart-i Reserve for a top-up or cash-out facility.

Yes, you may apply for our HomeSmart-i Advantage which is for completed and unencumbered properties only. The amounts available range from RM50,000 to RM10,000,000. The maximum margin of finance (MOF) is 90% of the current market value (CMV) and it's subject to the Bank's evaluation of your credit record.