Home Smart Home Loan

The Home Smart Home Loan works on the principle of reducing your mortgage faster.

The key to success is combining your income, savings and home loan into one easy to manage account and then taking a disciplined approach to manage it effectively.

This helps you pay off your home loan faster, but still gives you instant access to any additional funds you have paid into the loan, at any time, for any purpose, up to your reducing credit limit.

The following graph shows you how easy it is to get ahead by depositing your salary and savings into your Home Smart Home Loan account. You can also make additional payments into your Home Smart Home Loan account from dividends and investments to help you pay off your loan even faster.

Home Smart Home Loan repayments

In this example you have taken out a 25-year, $500,000 home loan. You have a monthly salary of $6,000 and monthly expenses of $3,500. You save the additional $2,500 per month into your Home Smart Home Loan account. The minimum monthly repayment for this loan, based on an ongoing rate of 5.50% would be $3,070
per month.
With an HSBC Home Smart Home Loan you could repay your mortgage 7 years and 6 months sooner and save $226,016 in interest.
For illustrative purposes only. The graph is a representation and the figures used are estimates only. It is assumed that interest rates remain the same for the life of the loan.

Because interest is calculated on your outstanding loan balance every day, any funds you leave in your account reduce the principal of the loan for as long as they remain there - which means the interest you pay during that time also reduces. As a result more of your home loan repayment goes towards paying off the principal of your loan. To help with this you could:

• Deposit all your income and savings directly into your Home Smart Home Loan and leave it there for as long
  as possible
• Let your regular monthly repayments and income continue to compound and work towards reducing the term
  and balance of your loan

Control and freedom: they're benefits you wouldn't expect to find within the same home loan, but now you can with a Home Smart Home Loan.

Other benefits include:

• A competitive floating interest rate and a simple convenient way to help you manage your finances
• An effective way to build equity that you can use for other investment purposes
• Saving you money by no ongoing monthly account administration fees, unlimited free deposits and 20 free
  withdrawals per month*
• A continuous line of credit that operates like an overdraft with a reducing limit
• The ability to redraw up to a reducing credit limit
• Floating interest rate

*Charges for certain account transactions apply. For full details please refer to the Retail Banking and Wealth Management Fees and Charges brochure.