Get a competitive interest rate, avoid ongoing fees and enjoy repayment flexibility with HSBC's Home Value Loan.
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.
HSBC is cutting variable rates
HSBC is cutting variable rates. Interest rates for this loan will drop by 15 basis points on 21 October 2019 for new and existing customers. HSBC's lowest variable rate will drop to 3.02% (comparison rate 3.04%).
|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 Insured LVR||90%|
|Mortgage Offset Account||No|
|Mortgage 100% Offset||No|
|Loan Redraw Facility||Yes|
|Split Loan Facility||Yes|
|Fixed Interest Option||No|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest|
|Lender's Legal Fee||$150|
|Ongoing Fees||$0 p.a.|
- 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).
- A discharge fee of $300 applies when you close your home loan account.
What do I need to know about this loan?
The HSBC Home Value Loan can be used to purchase a residential property. This loan is also an option 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).
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. 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.
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 do I apply for this loan?
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:
- 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.