HSBC to loan staff 120 times their salary to help fulfill their property dreams

After boosting up paternity leave from one week to two weeks in May, HSBC had offered another great perk for its employees- helping them buy a flat, which has become a mission impossible in Hong Kong in recent years.

The local staff housing loan will increase employee's housing loan limit from the current 100 times of their monthly basic salary to 120 times, with effect starting August 1, according to an internal memo shared by seen by Human Resources Magazine.  

The benefit is only applicable for permanent employees based in Hong Kong and they can utilise the perk to purchase property for self-residence purposes.

Total monthly repayment ratio including other loans and facilities is aligned to 60% of monthly basic salary for employees at all GCBs (global career band).

Maximum property age restriction is removed in alignment with treatment for RBWM (retail banking and wealth management) customers. Chinese tenement houses will be considered on a case by case basis.

Take an employee with a monthly salary of HK$30,000 for example, he or she can get a loan of up to $HK 3.6 million, close to the asking price of a starter home in the city.

“In an industry as competitive as banking, it is important that our employees know and feel that HSBC values them as individuals. Employee benefits are reviewed regularly to ensure that wide spectrum and best in class benefits are provided to support the diverse needs and well-being of employees,”  Betty Lam, Head of Human Resources, Hong Kong said in the internal memo.

On the timing of introducing the benefits a HSBC spokesperson told Human Resources Magazine that the bank regularly reviews its employee benefits programme taking into account a broad spectrum of factors, including market practice, employee feedback, feasibility and associated risks.

As the result of the review, the bank has decided to increase the housing loan limit so our permanent employees based in Hong Kong can utilise this benefit to purchase property for self-use purposes.

Commenting on the latest enhancement to the staff housing loan limit, Diana Cesar, chief executive, HSBC Hong Kong said “Our people are our most important asset and we need to take good care of all our colleagues. The latest enhancement to our employee benefits programme highlights HSBC’s continued commitment to understand and care for the different needs of our employees throughout their life stages,".

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