HSBC closing retail banking in Australia
On 31 July, HSBC announced it was closing its retail banking business in Australia. As such, it is no longer accepting new home loan applications.
Non-bank lender Pepper Money will take over management of HSBC's existing home loans in Australia. For further details, visit Important Notices on the HSBC website.
HSBC was one of Australia's major home loan lenders and catered to customers seeking a broad international bank. It offered tailored mortgage products for the Australian market and features that may have been useful for those living or regularly travelling abroad.
Established in 1865, HSBC set up shop in Australia in 1965. It is a global bank with a presence around 60 countries and territories.
In recent years, HSBC has been conducting ongoing strategic reviews of its business with the aim of simplifying its global operations. While its retail business will close in Australia, its corporate and institutional banking, private banking, and asset managements business will remain.
Below is information on HSBC's legacy home loan products:
HSBC home loans
HSBC offers a full suite of home loans, offering the likes of:
Relatively competitive interest rates
The bank also offers home loans that allow borrowers to use the equity in their home, fixed rates that can be locked in for up to five years, and an interest-only line of credit home loan with no fixed term.
Here's a snapshot of HSBC's home loans for owner occupiers and investors:
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.99% p.a. | 6.00% p.a. | $2,995 | Principal & Interest | Variable | $0 | $150 | 60% | |||||||||||||
6.09% p.a. | 6.10% p.a. | $3,027 | Principal & Interest | Variable | $0 | $750 | 80% | |||||||||||||
6.14% p.a. | 6.51% p.a. | $3,043 | Principal & Interest | Variable | $390 | $0 | 60% | |||||||||||||
6.24% p.a. | 6.25% p.a. | $3,075 | Principal & Interest | Variable | $0 | $150 | 70% | |||||||||||||
6.29% p.a. | 6.30% p.a. | $3,092 | Principal & Interest | Variable | $0 | $750 | 80% | |||||||||||||
7.64% p.a. | 7.47% p.a. | $3,183 | Interest-only | Fixed | $390 | $0 | 90% | |||||||||||||
6.19% p.a. | 6.23% p.a. | $3,059 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure |
HSBC home loan features: Flexible mortgages with benefits
HSBC offers a number of key features with its mortgage products. It offers unlimited additional repayments on certain home loans, unlimited redraws, and no ongoing monthly fees on its Home Value home loan. Its standard variable rate loans also come with an 100% offset account.
Some HSBC loans allow borrowers to split their rate between a fixed and variable interest rate.
Additionally, HSBC's Home Loan Package offers discounted rates and waived fees - this is only available for certain products.
HSBC Premier benefits explained
Australians can unlock Premier benefits by depositing at least $9,000 into an HSBC account each month or holding at least $150,000 across accounts with the bank. Premier benefits include:
Discounted mortgage package fees
Priority service and access to a specialist banking team
Exclusive rewards
Support to open accounts overseas prior to moving abroad
The ability to request up to US$2,000 of emergency cash from any HSBC branch
'Market leading, award-winning bank'
When asked why someone should choose HSBC over another bank, HSBC cited its market leading products and international expertise.
The bank's award-winning Everyday Global transaction account, credit cards, deposits, and personal loans are among its market leading products on offer; not to mention its low-rate mortgages.
Additionally, since HSBC has a global presence, it says it uses its 'unique' expertise, capabilities, breadth, and perspectives to "open up a world of opportunity for its customers".
Potential drawbacks of HSBC home loans
While HSBC offers competitive rates and strong features, there are a few potential downsides worth being aware of before applying.
Limited branch network compared to major banks
HSBC operates around 20 branches across Australia, primarily in capital cities. Borrowers in regional areas - or anyone who prefers in-person service - may find coverage limited.
Strict eligibility criteria for Premier benefits
HSBC heavily promotes its Premier service, which offers notable benefits (including discounted home loan fees) but unlocking those benefits requires:
Depositing $9,000+ per month, or
Holding $150,000+ across HSBC accounts
This may be a high bar for some borrowers.
How to apply for an HSBC home loan
You must meet the lending requirements before applying for a mortgage with HSBC. As with any home loan product, you'll generally need to be:
At least 18 years old
Employed or earning a steady income
Depending on the loan, you might also need a healthy credit history.
Note: Certain loan packages (for example HSBC's Home Loan Package) require a minimum borrowing amount ($150,000) and carry an annual fee ($390).
Documents needed
You will generally need to supply the following documents:
Personal ID, such as your driver's license, passport, or Medicare card
Payslips and proof of other sources of income
Asset and liability documents
Proof of genuine savings