HSBC Fixed Rate Loan

Features

HSBCs Fixed Rate Loan is available for purchases from $50,000 upwards (it does tap out at $7,500,000 if you’re adventurous).

As per the usual fixed rate scenario, the loan can be taken out over a period of up to five years and can be split with a variable portion. This is beneficial if you’re looking to lock in a competitive rate while still being able to make additional payments.

However, if you want to stick with a simple straight-up fixed loan, the Fixed Rate Loan allows you to make additional payments of up to $10,000 a year without incurring any charges.

Nowadays, it’s hard to find a mortgage that allows you to borrow more than 90 per cent of the property value. HSBC Fixed Rate Home Loan answers the brief by requiring only a 10 per cent deposit which would benefit first home buyers and investors alike.

While the HSBC Fixed Rate Loan is a stand-alone product, it can be packaged up with other HSBC products on offer. This gives you the opportunity to create your own banking experience depending on your financial needs.

Set and forget with direct credit scheduled repayments based on a weekly, fortnightly or monthly frequency. Repayments can be made from a bank account of your choice (it doesn’t have to be a HSBC account) and it’s your call if you want to pay the principle and/or interest for the duration of your fixed rate loan. Although if you take the interest only option, you can only make monthly repayments.

Who is the HSBC Fixed Rate Loan good for?

This loan is a great option for first home buyers, or borrowers without a large deposit. Investors can also take advantage of the HSBC Fixed Rate Loan and the portability function it offers.

Borrowers who want flexibility in whether they pay off their loan fortnightly or monthly, to fit their pay cycle, will find this loan addresses that need. The direct debit function from internal or external accounts will assist borrowers who want the security of knowing their repayment is always made on time.

Review - What RateCity says

HSBCs Fixed Rate Loan is a straightforward solution if you want a fixed rate loan with flexible repayment options. What makes this fixed rate loan appealing is that you only need a 10 per cent deposit if you don’t have a large amount saved. Borrowers should note, however, that having a 10 per cent deposit will mean having to pay lender’s mortgage insurance.

This product does lack a redraw facility and an offset account, which both offer the promise of savings. It is also worth noting that extra repayments can only be made up to $10,000 without incurring a charge. This loan is therefore most likely to suit a borrower on a tight budget who wants to pay the set repayment amount on a regular basis for the fixed term.

HSBC Fixed Rate Loan Options

There are a number of different loan options under HSBC’s fixed rate products including.

Fixed Rate Home Loan (Principal and Interest) 5 Years
Advertised rate
4.35%
Fixed - 5 years
Comparison rate*
4.93%
Compare
Fixed Rate Home Loan (Principal and Interest) 4 Years
Advertised rate
4.25%
Fixed - 4 years
Comparison rate*
4.95%
Compare
Fixed Rate Home Loan (Principal and Interest) 3 Years
Advertised rate
4.05%
Fixed - 3 years
Comparison rate*
4.98%
Compare
Fixed Rate Home Loan (Principal and Interest) 2 Years
Advertised rate
3.85%
Fixed - 2 years
Comparison rate*
5.04%
Compare
Fixed Rate Home Loan (Interest Only) 3 Years
Advertised rate
4.45%
Fixed - 3 years
Comparison rate*
5.08%
Compare
Fixed Rate Home Loan (Interest Only) 4 Years
Advertised rate
4.65%
Fixed - 4 years
Comparison rate*
5.09%
Compare
Fixed Rate Home Loan (Interest Only) 5 Years
Advertised rate
4.75%
Fixed - 5 years
Comparison rate*
5.09%
Compare
Fixed Rate Home Loan (Interest Only) 2 Years
Advertised rate
4.25%
Fixed - 2 years
Comparison rate*
5.11%
Compare
Fixed Rate Home Loan (Principal and Interest) 1 Year
Advertised rate
3.80%
Fixed - 1 year
Comparison rate*
5.15%
Compare
Fixed Rate Home Loan (Interest Only) 1 Year
Advertised rate
4.20%
Fixed - 1 year
Comparison rate*
5.19%
Compare
Fixed Rate Investment Loan (Principal and Interest) 5 Years
Advertised rate
4.69%
Fixed - 5 years
Comparison rate*
5.42%
Compare
Fixed Rate Investment Loan (Principal and Interest) 4 Years
Advertised rate
4.59%
Fixed - 4 years
Comparison rate*
5.47%
Compare
Fixed Rate Investment Loan (Principal and Interest) 3 Years
Advertised rate
4.35%
Fixed - 3 years
Comparison rate*
5.50%
Compare
Fixed Rate Investment Loan (Principal and Interest) 2 Years
Advertised rate
4.15%
Fixed - 2 years
Comparison rate*
5.59%
Compare
Fixed Rate Investment Loan (Principal and Interest) 1 Year
Advertised rate
4.10%
Fixed - 1 year
Comparison rate*
5.74%
Compare
Fixed Rate Investment Loan (Interest Only) 5 Years
Advertised rate
5.29%
Fixed - 5 years
Comparison rate*
5.85%
Compare
Fixed Rate Investment Loan (Interest Only) 4 Years
Advertised rate
5.19%
Fixed - 4 years
Comparison rate*
5.87%
Compare
Fixed Rate Investment Loan (Interest Only) 3 Years
Advertised rate
4.95%
Fixed - 3 years
Comparison rate*
5.89%
Compare
Fixed Rate Investment Loan (Interest Only) 2 Years
Advertised rate
4.75%
Fixed - 2 years
Comparison rate*
5.95%
Compare
Fixed Rate Investment Loan (Interest Only) 1 Year
Advertised rate
4.70%
Fixed - 1 year
Comparison rate*
6.07%
Compare

Fixed Rates from

3.80%

Advertised rate

4.93%

Comparison rate
Pros
  • 10 per cent minimum deposit.
  • No ongoing fees.
  • Portable so can be moved to another property.
Cons
  • No redraw facility.
  • No offset account.
  • Costly upfront fees.
Eligibility

·       Minimum loan amount $50,000.

·       Minimum deposit $10,000.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $750.00
  • Discharge fees: $300
  • Ongoing fees: $0

To setup a HSBC Fixed Rate Loan there are a costly set of upfront fees that need to be factored in. The good news is that there are no ongoing fees for the life of the loan and once your fixed-term has concluded it will cost you $150 to settle the loan.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About HSBC

HSBC has positioned itself as one of the world’s largest banking and financial services organisations. With branches located in just about every country around the world, it services more than 47 million customers. HSBC has the goal of being ‘where the growth is’ and connecting its customers to opportunities that help them to realise their financial goals. Customers of HSBC can live chat with bank staff on site, call or visit a branch to discuss their home loan application.

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