Enjoy a competitive interest rate and no monthly account fees with the HSBC Value Home Loan.
If you’re looking for a basic home loan that has a competitive interest rate, but don't want to miss features that can help you pay off your loan faster, you may want to consider the HSBC Value Home Loan.
| Product Name | HSBC Home Value Loan |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $50,000 |
| Maximum Loan Amount | $7,500,000 |
| Minimum Loan Term | 1 year |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 90% |
| Mortgage Offset Account | No |
| Mortgage 100% Offset | No |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Fixed Interest Option | No |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $600 |
|---|---|
| Lender's Legal Fee | $0 |
| Ongoing Fees | $0 p.a. |
| Settlement Fee | $150 |
| Discharge Fee | $300 |
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 (minimum redraw amount is $500).
Cons
- There is a $150 settlement fee to set up this loan.
- A discharge fee of $300 applies when you close your home loan account.
- If you borrow more than 80% LVR, you may need to pay an LMI premium.
Things to consider about the HSBC Home Value Loan
The HSBC Home Value Loan can be used for investment or owner occupier purposes. This loan is suited for borrowers who are looking to refinance, with HSBC's streamlined "Fast and Easy Refinance Process". When the documents are returned from the customer, HSBC intends to have the loan settled on the same day or the next business day.
With this product, you can borrow between $50,000 and $7,500,000. You can take out the home loan with a term up to 30 years and can borrow up to 90% of the property's value.
Be mindful that if you borrow more than 80% you will have to pay lenders mortgage insurance (LMI).
Features of the HSBC Home Value Loan
- Interest-only. The interest-only option means that you can reduce your repayments and free up some extra cash. You can make interest-only payments for a maximum of three years.
- 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.
- Flexible repayment schedule. With the HSBC Home Value Loan, you can choose from a weekly, fortnightly or monthly repayment schedule.
- 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.
- Redraw facility. The redraw facility means that you're able to access any of the extra funds you have deposited towards your home loan. If you opt to make these redraws through internet banking, there will be no fees charged; however, if you use the redraw facility in branch or elsewhere you'll have to pay a $40 fee each time, and you'll have to redraw a minimum of $500.
- 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 one split 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.
Fees
- Establishment fee $600. HSBC charges an establishment fee to cover the cost of setting up your loan. This fee is currently waived for the Resident Owner Occupier only loan.
- Loan settlement fee $150. The loan settlement fee covers the administration and legal costs of settling your loan.
- Valuation fee. The valuation fee is quoted on application. This fee is charged so HSBC can receive a value of the property you are using as security for the loan.
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.
Here, you can discuss your eligibility for this loan with a HSBC lending specialist or a qualified 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.
- 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.
Is it an offset account in this product?
Hi AJ,
Thank you for your question.
Unfortunately, the mortgage offset account is not one of the features of HSBC Home Value Loan. But rather the HSBC Premier Standard Variable Home Loan does have this feature.
If you want to find other home loan products that have offset account, please feel free to check this page.
Hope this has helped.
Cheers,
May
What is the maximum you will lend to in postcode 4744?
Hi RK,
thanks for the question.
You’ve come through to finder.com.au, a comparison and information service. Unfortunately we cannot answer this, so please contact HSBC directly with your question by clicking the green ‘go to site’ button.
I hope this helps,
Marc.
I live in Canberra and would like to buy a house in Brisbane for the first time and rent it out and after a year or so will go back to Brisbane and live there. Should I apply for an investor loan? if so the rates would be higher, what happens when I’m back in Brisbane? Will my loan change to new home buyer then? I mean interest rates decrease?
Hi Naser,
Thanks for getting in touch.
If you intend to rent out the property in Brisbane, you’ll need to initially apply for an investment home loan. However, when you move into the property and make it your principal place of residence (PPOR), you will need to contact your lender to alter the loan.
Generally, there are higher interest rates attached to investor loans so depending on the lender and the type of product you apply for, you may find that an owner-occupier loan has a lower rate.
All the best,
Belinda
Hi I would like to ask question. What is best variable rate and total cost for me to move my investment loan for my apartment from ANZ Bank to you ?
Thanks
NT
Hi NT,
thanks for the question.
To find out the best rate HSBC can offer you, click the Go to Site button on this page. This will take you to the HSBC site, where you can directly talk to them regarding your application and situation.
I hope this helps,
Marc.
Hi, is there a HSBC BANK in bunbury W.A.?
Hi Caroline,
thanks for the question.
Currently HSBC only has branches in Booragoon, Joondalup, Subiaco and Perth CBD.
I hope this helps,
Marc.
I made an offer for studio unit (33m2) valuing around $280K in Melbourne City. This is not student or hotel apartment.
Is this loan allowed for the studio unit?
Hi Jen,
Thanks for reaching out.
You might be interested to read our article about home loans for apartments which explores the restrictions imposed on apartment loans and offers advice about how to improve your chance of being approved.
Generally, the apartment will need to be at least 45-50 square meters (excluding the balcony or parking spaces) so unfortunately I think it may be difficult for you to qualify for finance for this studio apartment given it’s small size. Lenders impose stricter criteria for these types of dwellings as they believe that they may be more difficult to sell in the event that you defaulted on your loan.
However, you can improve your chance of being approved by opting for a low doc loan and saving up a large deposit.
HSBC will have their own policy when it comes to providing finance for apartments so you’ll need to get in touch with them directly and provide them with as much information as possible about the property.
You may also want to speak to a mortgage broker to discuss your options.
All the best,
Belinda
Hi, I would like to change my loan from cba to hsbc. Can i get an Interest only loan with this rate?
Thanks
Hi Parry,
Thanks for getting in touch.
You can compare our full range of HSBC home loans here or alternatively you can compare interest-only loans on this page.
We also have a refinancing guide which explains the process and costs of refinancing to a new lender. If you enter your current loan details in the table, it will calculate how much you will save by switching to a new loan listed in the table.
Thanks,
Belinda
Once again. I have the loan with the Big4 on interest only. I have been disciplined to make extra repayments treating it as a simulated P&I. Now I have a amount which is extra repayments. When moving over how do I deal with it. Should I take this amount over to the new bank and ask the new bank to pay the entire sum of the loan or only take the balance amount over and let the Big4 keep the extra repayments or advise.
Hi Fifi,
thanks for the question.
Unfortunately I’m unable to give personal advice regarding what is the best way to bring these extra funds across. I would recommend contacting a mortgage broker or financial planner who will be able to help you decide what is the best strategy for you.
Sorry I couldn’t be of more help,
Marc.
Hi,
I am currently with a Big4 bank. The new rate of HSBC @ 3.99 is a tempter. I contacted my current bank who have tried to dissuade me from moving telling me its risk with smaller banks cause if they go bust or broke, they can forfeit/sell your home without your consent or knowing since the title is still with them and they own the property/asset. I am not sure of this claim, or the risk of using a smaller lender. I have used the Big4, and paid all interest money on time. So I am unsure of the risks of moving over staying with the Big4. If you can advise me.
Thanks.
Hi Fifi,
thanks for the question.
We spoke to a home loans expert about this same topic and wrote an article about it here. Basically, in the event that a lender goes bust, the borrower won’t lose their home, but rather the loan is transferred to another bank. In some cases features can change when this happens.
We also spoke to the Financial Ombudsman Service and were told that the ‘loan agreement can be changed, but only in accordance with the terms of that (original agreement).
It might be a good idea to contact an experienced mortgage broker or the Financial Ombudsman Service for more information about this.
I hope this helps,
Marc.
hey there
i live in Sydney and want to buy a first home in my wife’s name
we have about 35000 in savings, i make 1500 per week cash, she is a full time mum on benefits around 1300 per fortnight
i own 3 registered cars, 2 motorbikes, and do not have any debts nor do we owe money to any financial institutions.
i want the loan entirely in my wife’s name, i have a default when i was younger.
how much can i borrow and what would the repayments be?
what paper work would she need to go ahead with the application?
Hi George,
thanks for the question.
You’ve come through to finder.com.au, a comparison service. We’re unable to tell you how much you could borrow for your situation. You might wish to contact HSBC directly about this to find out, which you can do by clicking the green ‘Go to Site’ button.
I hope this helps,
Marc.