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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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Review by
Marc Terrano is a lead publisher and growth marketer at Finder. He has previously worked at Finder as a publisher for frequent flyer points and home loans, and as a writer, podcast host and content marketer. Marc has a Bachelor of Communications (Journalism) from the University of Technology Sydney. He’s passionate about creating honest and simple reviews and comparisons to help everyone get value for money.
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.
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.
When you apply for the HSBC Home Value Loan, you'll need to supply the following:
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
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!
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!
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!
December 7, 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
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
November 14, 2022
Is 4.09% the current variable rate as at 14/11/22, which takes into account all of the recent rate rises or is the rate a few months behind and more like 4.84%?
Thanks
November 22, 2022
Hi Tanya,
HSBC’s Home Value Featured Rate of 4.09% was a promotional offer based on an Owner Occupier Interest Rate (Principal and Interest) before the latest rate increase. The bank has now increased the interest rate, but a promotional offer is still available. The interest rate you will pay depends on how much of a deposit you have.
Thanks,
Rebecca
November 2, 2022
Hi
I have a mortgage broker, can they apply on my behalf for this HSBC loan option with cash back (we do meet criteria) ?
Thanks
November 11, 2022
Hi Kerry,
Your mortgage broker will be able to act on your behalf to arrange your home loan application.
Thanks,
Rebecca