The Standard Variable Home Loan from HSBC allows you to make unlimited additional repayments.
Unlimited redraw is also available and if you redraw via online banking you can avoid paying any extra fees to access your redraw funds.
You can also take advantage of the 100 per cent offset to save on interest and elect to pay interest-only for a period.
While you can make your repayments weekly, monthly or fortnightly, you should be aware that the interest-only version of this loan only accepts monthly repayments.
Other features that make the HSBC Standard Variable Loan attractive include portability, which means you can change the property you have borrowed against without having to reapply for a new loan again (although there are conditions attached to this such as ensuring your new property is worth a similar amount to your old one).
The HSBC Standard Variable Loan can be used as a construction or bridging loan, and you can combine it with other HSBC loan products. The loan is offered to both investors and owner-occupiers, although investors will pay more in interest.
HSBC’s Standard Variable Loan is good if you have a 10 per cent deposit or more and would like the opportunity to pay your loan down faster without penalty.
The HSBC Standard Variable Loan is a simple product offering a reasonable interest rate to owner-occupiers. While it is not the cheapest interest rate offer on the market, the low ongoing fees may compensate for that.
HSBC makes it easier to pay your loan down faster by avoiding monthly fees and allowing extra repayments without penalty. Having no breakout costs is also a big plus. If you’re an investor however, the marked up interest rate may impact your decision.
As always, do your sums carefully and consider your financial goals when choosing your loan.
The HSBC Standard Variable Loan is a standalone home loan offering flexibility around early repayment.
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