Important disclosure
HSBC
HSBC is one of the world’s largest banks and provides a range of financial products, including home loans, credit cards, bank accounts, personal loans and insurance. It was founded in 1865 and is headquartered in London.
HSBC home loans range from standard owner-occupier home loans and investor home loans to specialist market linked loans, line-of-credit loans, home equity loans and more.
HSBC has branches throughout most states in Australia and offers customer service online, via email and over the phone.
Pros and cons
- Large variety of home loan products.
- Extensive customer support.
- Opportunity to bundle with other HSBC products.
- Offers discounts on interest rates.
- Some loans have moderate to high fees.
- Some interest rates aren’t competitive.
Owner occupied products interest rates
| Loan type | Principal & Interest rate | Interest Only |
|---|---|---|
Home Value Loan (Min Deposit 20%) | n/a | 2.57% p.a. 2.43% p.a. Comparison rate |
Package (Min Deposit 20%) | 2.47% p.a. 2.91% p.a. Comparison rate | 2.67% p.a. 2.92% p.a. Comparison rate |
1 Year Package (Min Deposit 20%) | 4.07% p.a. 3.05% p.a. Comparison rate | 4.27% p.a. 3.06% p.a. Comparison rate |
2 Year Package (Min Deposit 20%) | 4.27% p.a. 3.22% p.a. Comparison rate | 4.47% p.a. 3.23% p.a. Comparison rate |
Home Equity Loan (Min Deposit 20%) | n/a | 2.98% p.a. 3.24% p.a. Comparison rate |
Variable Rate Loan (Min Deposit 20%) | 3.16% p.a. 3.21% p.a. Comparison rate | 3.36% p.a. 3.26% p.a. Comparison rate |
1 Year Fixed Rate Loan (Min Deposit 20%) | 4.17% p.a. 3.31% p.a. Comparison rate | 4.37% p.a. 3.32% p.a. Comparison rate |
2 Year Fixed Rate Loan (Min Deposit 20%) | 4.48% p.a. 3.45% p.a. Comparison rate | 4.57% p.a. 3.46% p.a. Comparison rate |
3 Year Package (Min Deposit 20%) | 4.67% p.a. 3.47% p.a. Comparison rate | 4.87% p.a. 3.47% p.a. Comparison rate |
3 Year Fixed Rate Loan (Min Deposit 20%) | 4.87% p.a. 3.66% p.a. Comparison rate | 4.97% p.a. 3.67% p.a. Comparison rate |
Home Equity Loan packaged | n/a | 3.37% p.a. 3.82% p.a. Comparison rate |
Home Value Loan (Owner Occupied, Principal & Interest) (Min Deposit 30%) | 2.27% p.a. 2.28% p.a. Comparison rate | n/a |
Home Value Loan (Owner Occupied, Principal & Interest) (Min Deposit 20%) | 2.37% p.a. 2.38% p.a. Comparison rate | n/a |
Home Value Loan (Owner Occupied, Principal & Interest) (Min Deposit 10%) | 2.47% p.a. 2.48% p.a. Comparison rate | n/a |
Package (Min Deposit 30%) | 2.37% p.a. 2.81% p.a. Comparison rate | n/a |
Package (Min Deposit 10%) | 2.57% p.a. 3.01% p.a. Comparison rate | n/a |
1 Year Package (Min Deposit 10%) | 4.17% p.a. 3.15% p.a. Comparison rate | n/a |
Home Smart Loan (Min Deposit 10%) | 2.59% p.a. 3.2% p.a. Comparison rate | n/a |
Variable Rate Loan (Min Deposit 10%) | 3.26% p.a. 3.31% p.a. Comparison rate | n/a |
2 Year Package (Min Deposit 10%) | 4.37% p.a. 3.32% p.a. Comparison rate | n/a |
1 Year Fixed Rate Loan (Min Deposit 10%) | 4.32% p.a. 3.41% p.a. Comparison rate | n/a |
3 Year Package (Min Deposit 10%) | 4.77% p.a. 3.56% p.a. Comparison rate | n/a |
2 Year Fixed Rate Loan (Min Deposit 10%) | 4.79% p.a. 3.59% p.a. Comparison rate | n/a |
3 Year Fixed Rate Loan (Min Deposit 10%) | 5.08% p.a. 3.79% p.a. Comparison rate | n/a |
5 Year Package (Min Deposit 20%) | 5.07% p.a. 3.96% p.a. Comparison rate | n/a |
5 Year Fixed Rate Loan (Min Deposit 20%) | 5.17% p.a. 4.04% p.a. Comparison rate | n/a |
5 Year Package (Min Deposit 10%) | 5.17% p.a. 4.06% p.a. Comparison rate | n/a |
5 Year Fixed Rate Loan (Min Deposit 10%) | 5.32% p.a. 4.16% p.a. Comparison rate | n/a |
Investment purpose products interest rates
| Loan type | Principal & Interest rate | Interest Only |
|---|---|---|
Home Value Loan (Min Deposit 20%) | n/a | 2.77% p.a. 2.65% p.a. Comparison rate |
Home Value Loan (Min Deposit 10%) | n/a | 2.87% p.a. 2.75% p.a. Comparison rate |
Package (Min Deposit 20%) | 2.67% p.a. 3.11% p.a. Comparison rate | 2.87% p.a. 3.13% p.a. Comparison rate |
Home Equity Loan (Min Deposit 20%) | n/a | 2.77% p.a. 3.12% p.a. Comparison rate |
Package (Min Deposit 10%) | 2.77% p.a. 3.2% p.a. Comparison rate | 2.97% p.a. 3.23% p.a. Comparison rate |
1 Year Package (Min Deposit 20%) | 4.27% p.a. 3.25% p.a. Comparison rate | 4.27% p.a. 3.24% p.a. Comparison rate |
1 Year Package (Min Deposit 10%) | 4.37% p.a. 3.34% p.a. Comparison rate | 4.37% p.a. 3.33% p.a. Comparison rate |
2 Year Package (Min Deposit 20%) | 4.47% p.a. 3.42% p.a. Comparison rate | 4.47% p.a. 3.39% p.a. Comparison rate |
Variable Rate Loan (Min Deposit 20%) | 3.36% p.a. 3.41% p.a. Comparison rate | 3.56% p.a. 3.48% p.a. Comparison rate |
2 Year Package (Min Deposit 10%) | 4.57% p.a. 3.51% p.a. Comparison rate | 4.57% p.a. 3.49% p.a. Comparison rate |
1 Year Fixed Rate Loan (Min Deposit 20%) | 4.37% p.a. 3.51% p.a. Comparison rate | 4.37% p.a. 3.5% p.a. Comparison rate |
Variable Rate Loan (Min Deposit 10%) | 3.46% p.a. 3.51% p.a. Comparison rate | 3.66% p.a. 3.59% p.a. Comparison rate |
2 Year Fixed Rate Loan (Min Deposit 20%) | 4.57% p.a. 3.63% p.a. Comparison rate | 4.57% p.a. 3.62% p.a. Comparison rate |
3 Year Package (Min Deposit 20%) | 4.87% p.a. 3.66% p.a. Comparison rate | 4.87% p.a. 3.62% p.a. Comparison rate |
1 Year Fixed Rate Loan (Min Deposit 10%) | 4.78% p.a. 3.64% p.a. Comparison rate | 4.78% p.a. 3.63% p.a. Comparison rate |
3 Year Package (Min Deposit 10%) | 4.97% p.a. 3.76% p.a. Comparison rate | 4.97% p.a. 3.72% p.a. Comparison rate |
2 Year Fixed Rate Loan (Min Deposit 10%) | 5.08% p.a. 3.8% p.a. Comparison rate | 5.08% p.a. 3.8% p.a. Comparison rate |
3 Year Fixed Rate Loan (Min Deposit 20%) | 4.97% p.a. 3.83% p.a. Comparison rate | 4.97% p.a. 3.82% p.a. Comparison rate |
Home Equity Loan packaged | n/a | 3.57% p.a. 4.01% p.a. Comparison rate |
3 Year Fixed Rate Loan (Min Deposit 10%) | 5.48% p.a. 4.05% p.a. Comparison rate | 5.48% p.a. 4.03% p.a. Comparison rate |
5 Year Package (Min Deposit 20%) | 5.27% p.a. 4.16% p.a. Comparison rate | 5.27% p.a. 4.08% p.a. Comparison rate |
5 Year Package (Min Deposit 10%) | 5.37% p.a. 4.26% p.a. Comparison rate | 5.37% p.a. 4.18% p.a. Comparison rate |
5 Year Fixed Rate Loan (Min Deposit 20%) | 5.37% p.a. 4.25% p.a. Comparison rate | 5.37% p.a. 4.21% p.a. Comparison rate |
5 Year Fixed Rate Loan (Min Deposit 10%) | 5.93% p.a. 4.55% p.a. Comparison rate | 5.93% p.a. 4.5% p.a. Comparison rate |
Home Value Loan (Investment, Principal & Interest) packaged | 2.67% p.a. 2.68% p.a. Comparison rate | n/a |
Package (Min Deposit 30%) | 2.57% p.a. 3.01% p.a. Comparison rate | n/a |
Home Smart Loan (Min Deposit 20%) | 2.28% p.a. 3.06% p.a. Comparison rate | n/a |
Home loan repayment calculator
Thinking about taking out a home loan with HSBC? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how HSBC home loans compare with other options.
Your estimated mortgage repayments
at interest rate 2.27%
Total interest payable
$0
Total loan repayments
$0
Contact a mortgage broker
HSBC homeloans are vailable through brokers who can help find the right loan and manage your application at no charge.
HSBC customer service
HSBC customers are spoilt for choice when it comes to contacting customer support. The HSBC contact centre hotline operates round the clock giving account holders 24/7 access to customer support. In addition, HSBC customer can contact a personal banking representative directly by email or by using the online enquiry form. HSBC also gives its customers the option of directing customer enquiries through Twitter. Customers also have the option of chatting directly with HSBC customer support through the online chat function on the HSBC website.
- Customer service (phone, email branch)
- Mobile app
- Online banking
- Live Chat
How to Apply
Borrowers wanting to apply for an HSBC home loan can either complete an online enquiry form, pop into a branch or call through to the Contact Centre for more support. Before applying for an HSBC home loan, consider what you can afford to borrow and what other costs you need to factor in. To apply for an HSBC home loan, you will need to supply the following information:
- Proof of identity by providing 100 points of identification.
- Proof of income and employment including employers contact details.
- Provide a list of debts, assets and liabilities.
About HSBC home loans
HSBC home loans are popular options for investors buying property using foreign currency (expatriate home loans and market linked home loans) thanks to the bank’s large presence in Hong Kong.
However, it also offers a range of other home loans, including owner-occupier home loans, local investor home loans, construction loans and lines of credit.
HSBC offers home loans to suit a variety of borrowers in Australia:
- Investors
- First homebuyers
- Renovators
- Upgraders
- Refinancers
- Seniors (home equity loans)
Borrowers can also choose from a variety of interest rate options on HSBC mortgages:
- Principal-and-interest home loans
- Interest-only home loans
- Split home loans
- Variable interest rates
- Fixed interest rates
Some HSBC home loans come with limited-time interest rate discounts and other introductory offers. HSBC Premier home loans also offer additional benefits to customers who meet the eligibility requirements.
HSBC home loan rates
HSBC home loan rates range from moderately low to high depending on the type of borrower and home loan. Generally speaking, owner occupiers paying principal and interest receive the lowest interest rates while investors paying interest only receive the highest interest rates.
Home loan rates can also vary based on whether they are variable or fixed, and how much of a deposit is put down.
Typically, HSBC borrowers who can make large deposits can also negotiate lower interest rates. With this in mind, HSBC home loans are generally geared towards customers with existing capital – although high-LVR loans are available in some circumstances.
In terms of fees, upfront fees tend to be high, while ongoing fees tend to be very low. A discharge fee may also apply at the end of the loan term. Loan repayments can be made weekly, fortnightly or monthly.
HSBC home loans review
HSBC offers a range of home loan options, primarily aimed at overseas and local investors. However, it also offers home loans for first homebuyers, upgraders and refinancers.
While some HSBC home loans come with moderately low interest rates, others attract high interest rates – so it’s important to compare what’s on the market before deciding if an HSBC home loan is the most suitable option.
Similarly, some HSBC mortgages come with an offset account and redraw facility while others don’t, meaning the level of flexibility depends on the type of home loan chosen.
Although HSBC is an established and well-known bank, it isn’t necessarily the cheapest when it comes to interest rates and fees. Borrowers may get the most value out of their home loan by taking advantage of rate discounts, special offers or other benefits through HSBC Premier.
Learn more about home loans
How do you compare home loans?
To compare home loans, you can assess the components of the loan against your own financial situation and other mortgages in the market.
Look at the interest rate, rate type (fixed or variable), loan fees, features, loan term, repayment frequency and more to find a home loan that fits with your budget and property goals.
Then, use comparison tools like comparison tables, calculators, or RateCity's Real Time RatingsTM to create a short list of home loan options, and decide which home loan best suits your needs.
Does the Home Loan Rate Promise apply to discounted interest rate offers, such as honeymoon rates?
No. Temporary discounts to home loan interest rates will expire after a limited time, so they aren’t valid for comparing home loans as part of the Home Loan Rate Promise.
However, if your home loan has been discounted from the lender’s standard rate on a permanent basis, you can check if we can find an even lower rate that could apply to you.
How do I apply for a home improvement loan?
When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying.
Besides taking out a home improvement loan, you could also:
- Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement. Speak with your lender or a mortgage broker about accessing your equity.
- Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
- Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
- Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.
Do you compare mortgages using the comparison or advertised rate?
A lot of Australians compare home loans using the advertised interest rate, which indicates how much interest you’ll be charged on your mortgage repayments. The lower your rate, the cheaper your home loan should be.
However, interest charges aren’t the only cost associated with home loans. Most mortgage lenders also charge fees on their home loans. A mortgage with a low interest rate and high fees can sometimes cost more than a mortgage with a high interest rate and low fees.
A home loan’s comparison rate combines the cost of interest with the cost of standard fees and charges into a single percentage rate. Mortgage lenders are required to display a comparison rate alongside their advertised rate to better indicate the home loan’s overall cost.
Keep in mind that to ensure consistency, all comparison rates are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. As your home loan may be different, the comparison rate may not accurately reflect exactly how much your home loan may cost. Also, the comparison rate doesn’t include every home loan fee and charge, so it’s still important to compare home loans and read the fine print before you apply.
What is a home loan?
A home loan is a finance product that allows a home buyer to borrow a large sum of money from a lender for the purchase of a residential property. The home is then put up as "security" or "collateral" on the loan, giving the lender the right to repossess the property in the case that the borrower fails to repay their loan.
Once you take out a home loan, you'll need to repay the amount borrowed, plus interest, in regular instalments over a predetermined period of time.
The interest you're charged on each mortgage repayment is based on your remaining loan amount, also known as your loan principal. The rate at which interest is charged on your home loan principal is expressed as a percentage.
Different home loan products charge different interest rates and fees, and offer a range of different features to suit a variety of buyers’ needs.
What are the different types of home loan interest rates?
A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan.
Having understood what are home loan rates in general, here are the two types you usually have with a home loan:
Fixed rates
These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.
Variable rates
With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments.
Can first home buyers apply for an ING home loan?
First home buyers can apply for an ING home loan, but first, they need to select the most suitable home loan product and calculate the initial deposit on their home loan.
First-time buyers can also use ING’s online tool to estimate the amount they can borrow. ING offers home loan applicants a free property report to look up property value estimates.
First home loan applicants struggling to understand the terms used may consider looking up ING’s first home buyer guide. Once the home buyer is ready to apply for the loan, they can complete an online application or call ING at 1800 100 258 during regular business hours.
How do you find cheap home loans?
With so many interest rate options and repayment types available, finding the cheapest home loan may depend on the type of loan you choose.
Whether you’re looking for an owner-occupier or investor loan, with interest-only or principal and interest repayments, on a fixed or variable interest rate, the cheapest home loan rate available may vary greatly.
One way to find the cheapest option for you is to narrow down your search and compare the options that best suit your individual requirements. RateCity’s home loan comparison tables can help you get started on your search and take the hassle out of shopping around.
Cash or mortgage – which is more suitable to buy an investment property?
Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.
A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.
How to apply for a pre-approval home loan from Bendigo Bank?
Applying for pre-approval on your home loan gives you confidence in your ability to secure finance while looking at potential new homes. You can get a free and personalised pre-approval home loan from Bendigo Bank in just a few minutes, without any credit checks or paperwork.
Bendigo Bank offers pre-approval for home loans that allow you to understand the home loan size you may be able to get before looking for a new home.
With the pre-approval, Bendigo Bank provides an estimate of your borrowing power. This figure incorporates stamp duty, lenders mortgage insurance (LMI) and any first home buyer incentives you may be eligible for. You may also qualify for the First Home Loan Deposit Scheme initiative, depending on your circumstances.
To apply for a pre-approval on your home loan from Bendigo Bank, all you need to do is fill in a smart form. You could also contact the bank directly on 1300 236 344.
Are bad credit home loans dangerous?
Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.
Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).
That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.
How do I apply for Westpac’s first home buyer loan?
If you’re a first home buyer looking to apply for a home loan with Westpac, they offer an online home loan application. They suggest the application can be completed in about 20 minutes. Based on the information you provide, Westpac will advise you the amount you can borrow and the costs associated with any possible home loan.
You can use Westpac’s online mortgage calculators to estimate your borrowing power. You can also work out the time it might take to save up for the deposit, and the size of your home loan repayments.
When applying for a home loan with Westpac, you’re assigned a home finance manager who can address your concerns and provide information. The manager will also offer guidance on any government grants you may be eligible for.
When does Commonwealth Bank charge an early exit fee?
When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.
The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:
- If you switch your loan from fixed interest to variable rate
- When you apply for a top-up home loan
- If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
- When you prepay the entire outstanding loan balance before the end of the fixed interest duration.
The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay.
Does Australia have no-deposit home loans?
Australia no longer has no-deposit home loans – or 100 per cent home loans as they’re also known – because they’re regarded as too risky.
However, some lenders allow some borrowers to take out mortgages with a 5 per cent deposit.
Another option is to source a deposit from elsewhere – either by using a parental guarantee or by drawing out equity from another property.
What is 'principal and interest'?
‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.
By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.
