HSBC Premier Loan

Features

The HSBC Premier Loan has flexible features which will allow property buyers to keep interest costs down on their loan.

Borrowers can make both principal and interest and interest-only repayments on a weekly, fortnightly or monthly basis. However, interest-only repayments are only offered to individuals earning more than $150,000 per year.

A free redraw option is available with no minimum or maximum redraw amount. A 100 per cent offset account is available to customers wanting to use their savings to reduce the amount of interest owed on their mortgage.

Be aware that a high minimum loan amount of $500,000 applies and a maximum of $7.5 million. The discount on HSBC’s standard variable rate depends on the amount borrowed, with a maximum discount of 0.85 per cent applying to loans over $1.5 million.

Customers can borrow up to 90 per cent of the property’s value, although lender’s mortgage insurance will apply if the loan amount is over 80 per cent.

Who is the HSBC Premier Loan good for?

The HSBC Premier Loan is good for homebuyers borrowing a large amount of money who want extensive repayment options on their loan. The loan may suits owner-occupiers buying more valuable property who can use their savings to pay down their mortgage quickly. The availability of interest-only repayments could be attractive for some investors.

Review - What RateCity says

The HSBC Premier Loan is a variable rate loan that packs in plenty of features – but you pay for them through a high ongoing monthly fee and high upfront costs. Customers can make free additional repayments, minimise interest repayments using a linked offset account and make free redraws on any additional payments, which may entice homebuyers who want to pay off their loan on a flexible schedule with few restrictions.

The loan offers a discount off the standard HSBC variable rate, although the comparison rate remains quite high over the course of the loan This means the loan is most suited to those definitely planning on taking advantage of the repayment options and features, as lower rate loans are available elsewhere.

HSBC Premier Loan Options

The HSBC Premier Loan is a variable rate loan available to both owner-occupiers and investors.

Pros
  • Additional repayments allowed.
  • 100 per cent offset account.
  • Discounted variable rate.
Cons
  • High ongoing monthly fees.
  • Discount depends on loan amount.
Eligibility

Must be over 18 years of age.

Must be a citizen or permanent resident of Australia or New Zealand.

Must meet HSBC’s serviceability criteria.

About HSBC

HSBC Bank Australia is a subsidiary of the HSBC Group and is based in Sydney, NSW. They can be contacted online, via email and by phone 24-hours a day for existing customers, or 8am – 8pm from Monday to Friday for new enquiries.

They have branches throughout Australia, although times may vary by state.

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