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About HSBC

While it only established its Australian operations in 1965, HSBC was first founded as the Hongkong and Shanghai Banking Corporation Limited in 1865. It was the first locally owned bank in Hong Kong to operate using Scottish banking principles, and quickly expanded to seven countries across Asia, Europe and North America.j

HSBC home loans at a glance

Offset accounts available
Redraw facilities available
Line of credit available
Split rate option available
Green loan available
Ability to make extra repayments
Internet banking available
Salary crediting
Choice of repayment flexibility
Refinance available
Services first home buyers

What types of home loans does HSBC offer?

HSBC’s range of home loan products on offer currently includes:

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Who does HSBC lend to?

HSBC offers home loans that may be appropriate for first home buyers, refinancers, borrowers hoping to be home-builders, borrowers looking for bridging finance, and more. They also offer line of credit home loans, as well as packaged and guarantor-friendly home loans.

However, when it comes to what types of borrowers HSBC lends to, there are a few points that prospective borrowers should keep in mind.

The first is that HSBC has a minimum required loan-to-value ratio (LVR) of 95%, meaning you are unlikely to be approved for a home loan with HSBC if your saved deposit is less than 5% of your total proposed loan size.

HSBC also likely won’t give you a home loan if you don’t have the capacity to repay your proposed home loan at a rate 3% higher than the advertised interest rate. This is because the Australian Prudential Regulation Authority (APRA) requires all lenders to assess an applicant’s ability to service their proposed home loan in the event of interest rate hikes.

Can I get a HSBC home loan as a first home buyer?

Yes, HSBC provides home loans to first home buyers. While they don’t have a specific home loan product designed for first home buyers, they have several tools and resources available to first home buyers designed to help them navigate the process of buying a home for the first time.

Does HSBC offer the Home Guarantee Scheme?

No, HSBC is not one of the 33 participating lenders chosen by the Federal Government to offer the Home Guarantee Scheme. If you’re a prospective first home buyer looking to access the Home Guarantee Scheme, you may want to find a different lender to work with.

The Home Guarantee Scheme helps certain home buyers secure a home loan with a deposit smaller than 20%, without having to pay lenders mortgage insurance (LMI).

The Home Guarantee Scheme is made up of three separate initiatives:

  • The First Home Guarantee, which allows eligible first home buyers to purchase a home with a deposit of as little as five percent.
  • The Family Home Guarantee, which allows eligible single parents to purchase a home with a deposit of as little as two percent, regardless of whether they’re a first home buyer or not.
  • The Regional First Home Buyer Guarantee, which allows eligible first home buyers to purchase homes in regional areas with a deposit of as little as five percent.

Applications for one of these schemes can only be made through a participating lender or a mortgage broker acting as an authorised representative of a participating lender.

Can you refinance your home loan with HSBC?

Yes, you can switch your home loan to HSBC from another bank by refinancing. Borrowers refinancing their loan with HSBC may be able to add a redraw facility and/or an offset account to their new home loan (if eligible), and can choose from both fixed and variable rate options.

Does HSBC charge Lenders Mortgage Insurance (LMI)?

HSBC advises that they’ll likely require a borrower to take out lenders mortgage insurance (LMI) if the borrower’s LVR is 80% or greater – meaning the borrower’s saved deposit represents less than 20% of the total home loan value they’re applying for.

What home loan fees does HSBC charge?

As of 14 May 2024, HSBC charges the following home loan fees:

  • Establishment fee ($600)
  • Loan settlement fee ($150)
  • Loan splitting fee ($100)
  • Home loan package fee ($390)
  • Guarantor preparation fee ($100)
  • Multiple security property fee ($150)
  • Fixed rate lock fee ($750)
  • Discharge fee ($300)
  • Loan variation fee ($300)

Please note that these fees are subject to change without warning. Check the Key Facts Sheet of any home loan product you’re considering, to see how its fees and charges stack up.

Interested in a HSBC home loan? Compare with us today!

If you want to learn more about HSBC home loans, you can use our home loan comparison tool to compare them against a wide range of other loan products from nearly 20 other lenders!

Comparing home loans with us means only being shown home loans you’re eligible to apply for, and having a dedicated team of Home Loan Specialists to help you with any questions you may have. And if you find a home loan that you think might be appropriate for you, you can apply for it then and there – entirely online, with no physical paperwork.

So, if you’re in the market for a home loan, compare your options today with Compare the Market.

Stephen Zeller, Home Loans Expert

Meet our home loans expert, Stephen Zeller

Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).

Stephen leads our team of Home Loan Specialists, and reviews and contributes to Compare the Market’s banking-relating content to ensure it’s as helpful and empowering as possible for our readers.

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