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HSBC - We will help you understand home loans

We have a range of home loan calculators to help you find the facts and figures you’ll need in order to make a decision. When it comes to applying for a loan with HSBC you can do so both online and in-store

Capital value

This is a term you’ll see on your rating valuation. It’s the total value of your property. It includes buildings, land and not chattels it also covers things like carpets, curtains and light fittings.

Certificate of insurance

The bank will more than likely request for you to provide them with a certificate of insurance, which you will get from your insurance company.

Code of Compliance Certificate

Ensure that all building and modifications have a certificate before you purchase, this will be a certificate from local authority stating the building meet the terms with building consent requirements. The land information memorandum should contain all the compliance details.

Deposit

You’ll notice that this term has two meanings when it comes to purchasing a home. To the real estate agent, it’s a payment you give them once you agree to purchase your home, the funds will then go to the seller once your agreement becomes unconditional, the funds will be returned if the sale of the house is declined. To the bank, it’s the amount you pay towards your home itself.

Security

This term has several meanings. Once you have been approved for a home loan, your home will automatically be the security for the loan, this means the bank can sell the home if you default on repayments. The term is frequently used to mean certain kinds of investment such as shares or bonds.

Table loan

This loan offers a set repayment each month or fortnight. Most of the money generally goes towards the interest owing, once your loan starts to come down each month more of each repayment will go towards the repayment on the loan itself.

Term

Term has a few meanings. When you obtain a loan it means the period of time you take your home loan out for – a lot of home loans are between 20 or 30 years. It could also be for how long your lease is that is if you have a leasehold property. It also means the period of time an investment is for.

Auction

This is a great way of selling since all the buyers are in one place to make an offer (bid) until only one buyer remains to bid. An auction is run by an auctioneer. The individual selling generally sets a reserve price and is not obligated to sell should the offer be less than the reserved amount

When you purchase at an auction you are obligated to go through with the purchase, so you will need to ensure that you have checked everything firs and have your fund in order, that would include the funds for the real estate deposit which will then be paid to the auctioneer on the very same day.

Some history on our company

It was from one simple idea that we were born to be a local bank in March 1865, serving international needs. We opened our doors for business in Hong Kong.