Source : The Straits Times, Aug 23, 2007
HSBC is offering some clients a four-week payment holiday every time their mortgage hits its 12-month anniversary.
Home buyers with variable rate loans can stop payments for a month once a year.
The deferred amounts will be added on to the outstanding loan balance.
HSBC's head of consumer banking here, Ms Wendy Lim, said: 'This will give customers greater flexibility in managing their finances.'
There is no limit to the number of payment holidays, as long as it is kept to one month per anniversary year.
Observers say those most likely to take up the offer will be borrowers facing short-term financial difficulties.
The innovation is a first in the home loan market here, according to Ms Lim.
The offer is open only to new home loan customers who take out loans with variable rates.
HSBC is also launching today home loan packages linked to the Singapore interbank offered rate (Sibor). These will have their interest rates pegged at the three- month Sibor rate plus 0.7 per cent.
The payment holiday offer will not apply to Sibor-linked home loan packages.
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