HSBC Fixed Rate Home Loan Review
A fixed rate can safeguard you against rate rises in that period.
Locking in your interest rate on a home loan gives you surety and a competitive rates. If you don’t like uncertainty, then this loan can help you take some short term uncertainty off the table. This loan could be for you. After the fixed interest period, the loan will revert to the HSBC standard variable rate loan.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206) and a Tier 1 Generic Knowledge certification (RG 146).
Owner occupiers and investors can both take out this home loan for their next property purchase when they have a loan value between $50,000 and $15,000,000 for a period up to 30 years.
If you are wanting to fix you interest for a period of one to five years this loan is suitable for you and you can also opt to pay off the loan in principal and interest repayments for the life of the loan or interest only repayments monthly for a period of up to five years.
About this loan
What are the features and benefits of the HSBC Fixed Rate Home Loan?
- Repayment frequency. Three payment frequency options of monthly, weekly or fortnightly repayments are available. Having such a range of repayments frequencies means that you are sure to be able to find one that suits you and your financial situation.
- Loan split. Splitting a home loan is a great way to take advantage of other features that are not available on this home loan. Just because you'd like to have security from interest rate rises doesn't mean that you have to miss out completely on the flexibility of a variable home loan.
- Extra repayments. You will not be charged any fees for making extra repayments on your HSBC Fixed Rate Home Loan up to the amount of $10,000.
- Loan portability. If you choose to sell up and move during the term of your home loan you can take your loan with you without having to pay the upfront fees all over again, however there may be some fees payable for valuation of the new property.
What fees and charges come with this loan?
This loan doesn't charge any ongoing fees however below are some of the fees that you will incur with this loan:
- Application fee: $600. This covers the cost of applying for this loan.
- Settlement fee: $0. This is charged to cover the cost of setting up your home loan accounts.
- Discharge fee: $300. This is charged when you close your home loan accounts whether that is through a payout or refinancing.
- Switching administration fee: $300. This is a fee charged if you choose to switch your loan from a fixed rate to a variable.
Interest rate discounts are available for customers who package other HSBC products with their HSBC Fixed Rate Home Loan.