'Ask the Banker' - Akilah Simmons - HSBC Bank Bermuda

'Ask the Banker' - Akilah Simmons - HSBC Bank Bermuda

Akilah Simmons, Personal Banker, Retail Banking and Wealth Management at HSBC Bank Bermuda discusses what information the bank requires to get a mortgage and the pre-approval process, as well as discussing HSBC's new fixed-rate mortgages.

I am worried that interest rates might go up soon - does the Bank offer any fixed-rate mortgages or interest rate hedge products?
HSBC Bank Bermuda is currently offering a Fixed Rate Mortgage for new mortgages. This limited time offer will ensure that your payments will remain the same for the first five years. I encourage you to make an appointment with your Relationship Manager or a Personal Banker to discuss your eligibility. If you have an existing mortgage, we can offer to schedule you an appointment for a Financial Review to look at solutions that would best suit your needs.
Visit www.hsbc.bm/homesolutions to learn more about our Fixed Rate Mortgage. 

I am a first time buyer - what information does the bank require from me to get a mortgage
and how long does the pre-approval process normally take?
Right now is a great time to be a first time home buyer! To ensure the pre-approval process runs smoothly, you should have the following: 

Letter or contract from current employer and pay stubs/statements to verify income 

If self-employed/ business owner - Payroll Tax Returns from within the last 12 months or 2 years financial statements 

Valid photo identification (passport, Bermuda driver’s license) 

Copy of rental agreement if rental income is being received and statements to verify income is being received 

Please consult your lawyer to ensure that you are compliant with the Bermuda Immigration and Protection Act 1954 (as amended).

If you receive any other income, we will need proof of that income as well. The pre-approval process is primarily used to get an idea of the prices of homes you can receive financing for, always keeping in mind the amount needed for your down-payment and legal costs. This process can take about two weeks if you have all your paperwork needed at your initial meeting. Also remember that pre- approval is subject to certain terms and conditions which are spelled out in the pre-approval letter. 

Additional information required for your mortgage, once you find a home, will include: 

• An appraisal of the property, with an appraiser on the Bank's approved list 
• Signed Sales and Purchase Agreement 
• Home Building Insurance for the property 
• A lawyer to act on your behalf, whom is also on the Bank's approved list of law firms. 

Your Personal Banker will be able to provide quotes for Home Building, Contents and Mortgage Protection insurance through our partner BF&M and they can discuss the added benefits of being an HSBC customer should you decide to purchase.