flagFounded: 1866 overseas, 1965 in Australia

businessOwned by: HSBC Group, listed on the London Stock Exchange

monetization_onFunded by: Retail deposits and wholesale capital markets

securityLMI Provider: Genworth

account_balanceLender type: International Bank

HSBC is the 5th largest bank in the world and has been a popular choice in Australia for people of Chinese descent and international borrowers.

They built up a large following using their partnership with mortgage brokers only to withdraw from the broker market and sell their customer’s loans to Firstmac in a surprise move in 2006.

They’ve predominantly targeted the Chinese community in Australia for home loans and overseas for investment loans, as they recognise the HSBC brand from Hong Kong where it has a much larger presence.

How do HSBC’s home loans compare?

They’re great at

But they’ve got some drawbacks…

Coronavirus / COVID-19: HSBC mortgage relief

HSBC home loan customers facing financial hardship due to COVID-19 can apply to defer their mortgage repayments for up to six months (with a review after the first 3 months). This is also known as a repayment holiday

Please be aware that interest continues to accrue on your home loan during this period.

To apply, you can simply download and complete the Statement of Financial Position from their website and then email it to financialhardship@hsbc.com.au

Alternatively, you can also call their financial hardship team on 1300 555 988 (Mon-Fri).

But there’s a catch…

They don’t deal with many mortgage brokers, which means there isn’t someone on your side to keep the bank honest!

Will your HSBC lender call you up to let you know that your rate is no longer competitive? Of course not!

It’s almost certain that older HSBC home loans will be on a much higher interest rate than the home loans being offered to entice new customers.

If you choose to go with HSBC, then you need to check your interest rate every year to make sure that they haven’t played any games. We regularly check the rates of our customer’s loans and either renegotiate or refinance if their lender can’t give them what they are giving to new customers.

What are HSBC really good at?

We think HSBC is a market leader with their Market Linked Loan. This is a foreign currency loan that can be used by foreign investors or Australians who have an income in another currency.

Just say you are earning USD or HKD. If the Australian dollar goes up, you’re making much higher repayments on your Australian investment loan.

By putting the loan in the same currency as your income, you reduce this risk, and introduce a new one. Your home loan could end up being much larger than the value of your home if the Australian dollar falls.

Foreign currency loans typically have much lower interest rates than Australian loans, so they tempt a lot of people who really don’t know the risks or how exchange rates work.

HSBC’s standard home loans including their Variable Rate Loan, Home Value Loan and Home Smart Loan often have a low rate and at times they are comparable to the market leads. Their fixed rates are quite good and they tend to have one fixed rate term (e.g. 3 years) that is a market leader while the others are not as competitive.

Tip for applying with HSBC

Use HSBC’s home loan application form to prepare for your mortgage application.

Note: This is the latest application form as at November 2017. Please refer to HSBC for their most up-to-date document requirements.

Compare HSBC to other lenders

Not sure which lender is right for you? Our Home Loan Experts can help!

Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.