SINGAPORE - HSBC Singapore on Wednesday (Aug 7) launched its first overseas mortgage solution, that will initially be offered to customers looking to finance residential property investments in Australia, before being rolled out to other markets.
Among other benefits, the HSBC International Mortgage will allow consumers to choose the loan currency in either Australian dollar or Singapore dollar, the bank said.
According to HSBC, customers will also be accorded the HSBC Premier status in Singapore once they take up this international mortgage solution, giving them access to relationship manager support via HSBC's Premier International Centres in the region, which includes Singapore and Australia.
Ranojoy Dutta, head of retail products at HSBC Singapore, said: "Singapore and its people are amongst the most internationally oriented in the world and this extends to overseas investment. We went with Australia as the first market for this solution given the close affinity that Singaporeans have for the country on the back of their business, education, holiday or familial ties. We're similarly seeing this reflected in our customers' interest so we're really responding to this growing momentum."
Following a report by HSBC last year, a third of the surveyed mass-affluent Singaporeans have overseas property investments, while 70 per cent plan to buy investment properties abroad.
In 2017, more than 400,000 Singaporeans visited Australia. Of these, more than half or over 200,000, went to Australia for a holiday, with the most popular destinations being Melbourne (35 per cent), Sydney (30 per cent) and Perth (27 per cent).
In addition, there were nearly 1,800 Singaporeans who started their studies at Australian universities in 2016, figures from the Australian High Commission show.
Mr Dutta added: "Our extensive presence in Australia makes this solution an unparalleled offering in the Singapore international housing loan market. Having the choice of on-the-ground relationship manager support in both Singapore and Australia is very powerful and immeasurable, particularly during high-pressure periods, such as the lead up to a property purchase or sale or getting assistance for your day-to-day accounts."