HSBC home loans review

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on December 02, 2021 Fact Checked
HSBC home loans review

HSBC has been using its unique expertise, capabilities, breadth, and perspectives to open up a ‘world of opportunity’ for its customers since 1865.

Established in 1865, HSBC Group hopes to bring people, ideas, and capital together to help create a better world for its customers, employees, investors, communities, and “the planet we all share”.

HSBC set up shop in Australia in 1965, developing its products locally to suit Australian consumers. Being one of the world’s largest banking and financial services organisations, HSBC also spans across the world over 64 countries and territories.

“Today, (HSBC) provides market leading fixed rate and variable rate home loans across 38 branches and broker partners,” a HSBC spokesperson told Savings.com.au.

HSBC home loan products

HSBC offers “the full suite of home loans”, with “market leading and competitive” variable rate home loans, packages with 100% offset accounts, free redraw facilities, and more notable features.

For instance, its ‘Home Value’ variable rate home loan has a low variable rate of 1.97% p.a. (1.98% comparison rate), with free extra repayments and no ongoing monthly service fee.

The bank also offers home loans with the ability to use the equity in your home; fixed rates that you can lock 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
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details

Home Value Home Loan (Principal and Interest) (LVR < 70%)

VariableMore details

Home Value Investment Loan (Principal and Interest) (LVR < 80%)

VariableMore details

Home Value Investment Loan (Principal and Interest) (LVR 80%-90%)

VariableMore details

Standard Variable Rate Home Loan (Principal & Interest)

VariableMore details

Package Variable Home Loan (Principal & Interest) (LVR 80%-90%)

VariableMore details

Home Value Investment Loan (Interest Only) (LVR 80%-90%)

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given Rates correct as of January 17, 2022. View disclaimer.

See how HSBC’s home loans compare to other low-rate home loans for owner occupiers

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
VariableMore details
ZERO APPLICATION FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Rates correct as of January 17, 2022. View disclaimer.

HSBC home loan features: Flexible mortgages with benefits

HSBC offers a number of key features with its mortgage products.

It’s currently running a $3,288 cashback for external refinances until the end of 2021 (eligible for applications between 15 February and 31 December 2021 and settled by 28 February 2022, conditions apply).

The bank also offers unlimited additional repayments on certain home loans, unlimited redraws, and no ongoing monthly fees on its Home Value home loan.

Flexibility is key as you can schedule your repayments to the timing of your income; whether that be weekly, fortnightly, or monthly. Standard variable rate loans come with an 100% offset account.

From additional repayments to its offset accounts, there are a number of ways for HSBC customers to save on interest charges and pay off your loan faster.

Some HSBC loans let you split between a fixed and variable interest rate, “giving you the best of both worlds”.

Additionally, HSBC’s Home Loan Package offers discounted rates and waived fees - this is only available for certain products.

“Customers who qualify for Premier can access a dedicated Relationship Manager as well as wider worldwide Premier benefits,” a HSBC spokesperson said.

‘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”.

How to apply for an HSBC home loan

You must meet the lending requirements before applying for a mortgage with HSBC. Generally, you need to be:

  • At least 18 years old;

  • An Australian citizen or permanent resident

  • Employed or earning a steady income

Depending on the loan, you might also need a clean credit history. 

You can apply for a mortgage on the HSBC website. You can also speak with a mortgage expert on 1300 694 722 or visit a branch.

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 savings, term deposits, managed funds etc.


Image by Jose G Ortega Castro on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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