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Fixed or floating interest rate

The ideal mortgage loan for you

When deciding upon which mortgage loan to select, the first choice you will have to make is whether you prefer a fixed interest rate over a floating one.
In this section you can briefly get informed about the two home mortgage loan options by HSBC, however if you require further clarification and more detailed information you can visit any HSBC branch.

Mortgage Loan with Fixed Interest Rate

The Mortgage Loan with Fixed Interest Rate delivers a fixed interest for a predetermined time period. Upon completion of this period, you can reselect the fixed rate option to continue with or you can switch to a floating one. In both instances, the interest rate values will be determined at the time.

Advantages Areas of concern

- Protects against interest rate fluctuations
- Option of selecting fixed interest rate duration
- Eases planning due to knowledge of the unchangeable amount to be paid

- Premature settlement is possible to be accompanied by a fee
- It is not as advantageous in periods of interest rate decrease

Mortgage loan with floating interest rate

The Mortgage Loan with Floating Interest Rate tends to have interest rate fluctuations.

Advantages Areas of concern

- Great flexibility. Option for additional payments each year resulting in overall interest reduction
- Installment amounts decrease as interest rates decrease

- More difficult to plan due to interest rate changes
- It is not as advantageous in periods of interest rate increase

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Want to feel relaxed at home?

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