If you’re looking for an owner occupier home loan that comes with a low variable interest rate, limited fees and repayment flexibility then the HSBC Value Home Loan could be for you. It's even available for borrowers with a 10% deposit.
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HSBC Home Value Loan
By Marc Terrano
- Interest rate
- 6.84 % p.a.
- Comparison rate
- 6.73 % p.a.
- Minimum Deposit
- 10 %
Our verdict
Get a competitive interest rate, avoid ongoing fees and enjoy repayment flexibility with HSBC's Home Value Loan.
Pros
-
There are $0 ongoing monthly fees to pay.
-
You can make extra payments at any time without penalty.
-
You can withdraw extra funds from your mortgage via the redraw facility (unlimited online redraw).
Cons
-
A discharge fee of $300 applies when you close your home loan account.
Details
Product details
| Product Name | HSBC Home Value Loan - LVR above 80% (Investment, IO) |
| Interest Rate Type | variable rate |
| Repayment Type | Interest Only |
| Comp. Rate | 6.73% |
| Minimum Loan Amount | $50,000 |
| Maximum Loan Amount | $15,000,000 |
| Maximum Loan Term | 30 years |
| Maximum LVR | ?90% |
| Loan Redraw Facility | Yes |
| Offset Account | No |
| Split Loan Facility | Yes |
| Fixed Interest Option | No |
| Loan Portable | Yes |
| Extra Repayments | Yes |
| Available as equity loan/line of credit | No |
Fees
| Application Fee | $0 |
| Lender's Legal Fee | $0 |
| Valuation Fee | $0 |
| Settlement Fee | $150 |
| Discharge Fee | $300 |
Pros & Cons
| Pros and Cons | Pros
Cons
|
About this loan
What are the features and benefits of the HSBC Home Value Loan?
- Extra payments. You can make additional repayments towards your loan without penalty, allowing you to minimise the interest payable over the life of your loan and reduce your loan term.
- Redraw facility. The redraw facility means that you're able to access any of the extra funds you have deposited towards your home loan. Your first redraw will be free, but subsequent redraws will cost $20 each after this. However, you can make unlimited free redraws online.
- Portability. The portability feature gives you the flexibility to transfer your home loan in the event that you move property. This means you can save on application and other mortgage fees by maintaining your HSBC Home Value Loan.
- Flexible repayment schedule. With the HSBC Home Value Loan, you can choose from a weekly, fortnightly or monthly repayment schedule.
- Split Loan option. This option lets you to split your loan into both variable and fixed rate portions. When you apply for the HSBC Value Loan you get the option of having three splits for free.
- Customer service. When you apply for the HSBC Home Value Loan, you'll be paired with a personal Relationship Manager who will help you through the entire process and answer any questions that you may have.
What fees and charges come with this loan?
- Establishment fee $0. HSBC charges an establishment fee to cover the cost of setting up your loan.
- Loan settlement fee $0. The loan settlement fee covers the administration and legal costs of settling your loan. This fee is currently waived for the Resident Owner Occupier only loan.
HSBC needs to pay for an independent home valuation before you can finalise the loan. This helps HSBC understand the value of the property and helps to determine how much you can borrow and whether mortgage insurance is required.
How to apply
If you believe the HSBC Home Value Loan is right for you, click on the green 'Go to site ' or 'Enquire' button. You will then be redirected to the HSBC website or to a mortgage broker page.
Then you can discuss your eligibility for this loan with a HSBC lending specialist or a qualified mortgage broker.
Required documentation
When you apply for the HSBC Home Value Loan, you'll need to supply the following:
- Personal details. You'll need to provide your name, date of birth, residency status, current residential address and employment status.
- Assets and liabilities. HSBC will need you to outline any assets that your currently own (e.g. shares or managed funds), and details about any liabilities you have (e.g. credit cards or a car loan).
- Income and expenditure. You'll need to provide details of your gross income and your monthly expenses, such as pay slips, tax returns and bank statements.
- Loan structure and purpose. You'll be required to specify details including the number of loans, loan type, loan term and the interest-only term (if applicable).
- Security details. HSBC will need information regarding the security property including property type, property ownership and address.
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Marc Finder
Publisher
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Sarah Megginson Finder
January 05, 2024
Hi Melissa, offset is not currently available with this home loan.
Fiona
January 04, 2024
Is a redraw facility as good as an offset account? Does it perhaps depend upon whether interest is calculated daily and whether you can leave portion of your salary in the account for a decent period of time before needing to access due to larger bills like vehicle registration or home insurance?
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Sarah Megginson Finder
January 05, 2024
Hi Fiona, The funds in your offset account are generally available more readily and with less restrictions. For instance, some redraw facilities require a minimum amount to be transferred (eg $500), whereas with an offset account, you could transfer as little as 0.01c from the account if you wish. With both offset and redraws, you benefit from paying less interest while your funds are parked in the mortgage or offset account, so the financial benefit is almost even.
Hope this helps!
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David Gentle
October 16, 2023
The variable refinance interest rate is shown as 5.74%. Is this correct? Also, what are the fees and charges associated with this loan? Thank you .David
Sarah Megginson Finder
October 26, 2023
Hi David, the interest rate changes frequently and depends on many specifics such as loan type (owner occupier or investment? Interest only or P&I?) As of today’s date, the rate list for an owner occupier P&I loan at 60%LVR is 5.74%; at 70% LVR or less is 5.79%; and at 80% is 5.84%.
Fees are listed in the “Fees” tab, and they vary depending on the type of loan you choose.
Hope this helps!
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Sharez Akhter
April 25, 2023
Hi Finder team,
I’m wondering if someone could help me understand how the variable interest rate are calculated if there’s no offset account.
Actually, I was told by HSBC that if I deposit all my savings in my loan account the outstanding balance will come down, and monthly interest will be charged on the outstanding balance. Also, there will be no limit on depositing extra funds, and I can rewards funds anytime.
However, after settling down my loan the first month’s interest has been charged on the total loan amount of 250k, despite the fact I had already deposited more than 55k in my loan account and outstanding balance is now 195k.
So my question is what’s the point of depositing extra funds if the interest will always be calculated on the actual signed up loan amount ? Also, is it that normal for banks to differ from their verbal statements once the loan has been settled ?
Thanks in advance!
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Sarah Megginson Finder
April 25, 2023
Hi Sharez,
We’re not licenced to provided financial advice, so you’ll need to talk to your bank about your specific situation.
However, we can give you general information about how it works.
With an offset account, any savings “offset” the amount of interest you pay and instead, that payment goes towards the principal
Eg you have a loan of $250,000 and your repayment is $1600 a month. The interest payable is 5%, or $1041 per month. This means of your repayment, $1041 goes to interest and the remaining $559 goes towards repaying the $250k balance.
With an offset balance of $55,000, your interest for the month is reduced to just $813. You still make a payment of $1600 for the month, however $813 goes to interest, and the remaining $787 goes towards repaying the $250k balance.
This way, with an offset account, you pay less interest and repay the outstanding debt faster. However the repayments say the same every week/month.
If you have paid these funds directly into your loan account rather than the offset account, the same calculations apply. Either way, the repayments are the same, but MORE of your repayment goes towards the principal rather than interest.
Hope this helps!
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Ron
December 07, 2022
My existing loan is up soon and i need to refinance. Its an investment property, over $250k, with over 40% equity, and I was wondering what rates I can obtain and do I qualify for the cashback offer? Thank you
Rebecca Pike Finder
December 20, 2022
Hi Ron,
The interest rate that will be assigned will depend on several factors such as credit history, income, etc. You may use HSBC’s Home Loan Borrowing Power Calculator to have an idea.
To qualify for the cashback, you need to meet the following criteria:
Submit your new home loan applications for full approval between 15 February 2021 and 28 February 2023
Settle the loan by 30 April 2023 and have it refinanced from a financial institution other than HSBC Bank Australia
Thanks,
Rebecca
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melissa bloomfield
January 04, 2024
hello is this deal availabe as 100% off set?