Enjoy a discounted interest rate and a 100% offset account with the HSBC Premier Discounted Standard Variable Rate Home Loan
Many factors go into determining how much a loan will cost you, but one of the most important factors is the interest rate. As long as you have relatively low fees, having a lower interest rate will go a long way to ensure your repayments aren’t too high. The HSBC Premier Discounted Standard Variable Rate Home Loan discounts your interest rate to when you borrow over $50,000 and are eligible for the Premier Package, meaning you can make savings on your repayments.
|Product Name||HSBC Premier Home 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||Yes|
|Mortgage 100% Offset||Yes|
|Loan Redraw Facility||Yes|
|Split Loan Facility||Yes|
|Fixed Interest Option||Yes|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$0|
|Ongoing Fees||$420 p.a.|
- 100% offset account available
- Interest only options for up to 5 years
- Additional repayments can be made without early exit fees
- Maximum LVR of 90%
- Annual service fee of $420
Things to consider about the HSBC Premier Discounted Standard Variable Rate Home Loan
The Premier Discounted Standard Variable Rate Home Loan is a package loan suited to those buying an investment property or home and is available for new borrowings over $50,000 if you qualify for the Premier Package. It's also available for those refinancing.
Being a HSBC Premier loan means this product comes with a number of additional perks and discounts of other HSBC products, including:
- Better term deposit pricing
- A HSBC Premier Debit Card which has a number of complimentary insurance policies
- A HSBC Premier Cash Management Account with no local charges
- A discount of 50% off of the fee for an initial Financial Plan preparation
- Waived annual fees on a HSBC Premier World MasterCard credit card
- Discounts on a range of HSBC insurance products
- Free international money transfers between HSBC accounts.
Features of the HSBC Premier Discounted Standard Variable Rate Home Loan
- Maximum loan amount and LVR. This loan has a maximum amount of $7,500,000 and a maximum Loan to Value Ratio (LVR) of 80%, or 90% if you're willing to take out Lender's Mortgage Insurance (LMI).
- Split option. You can split your home loan into variable rate and fixed rate portions with this product.
- Interest rate discounts. The Premier range of loans comes with an interest rate discount. This means your interest rate becomes a competitive . with a comparison rate of and nets you savings on your repayments.
- Additional repayments and redraw facility. The Premier Discounted Standard Variable Rate Home Loan allows you to make an unrestricted amount of additional payments towards your loan. The redraw facility gives you access to these additional repayments if you need the extra cash back, although HSBC have a minimum redraw amount of $500.
- Repayment options. You can elect to make your repayments every week, fortnight or month with this loan and you can even pay interest only for up to three years.
- Fee discounts. This loan offers new borrowers a 50% discount on their application and variation fees. The loan does have an ongoing fee which is typical of all package loans.
- Relationship manager. You get a relationship manager with this home loan who will help look after your banking needs as a Premier customer. This means you get personalised service and information and can view all of your financial options.
- 100% offset account. You can place your funds in a linked offset account to save money on your home loan. An offset account is a transaction account which is linked to your home loan. Any funds in your account offset interest on your home loan. An account balance of $40,000 on a home loan of $500,000 will see you only pay interest on $460,000.
- HSBC Easy Switch. If you're refinancing to this loan you can make use of HSBC Easy Switch, which accelerates the process.
Fees and charges
Fees you can avoid
- LMI. Amount varies. A Lender's Mortgage Insurance (LMI) premium is charged if you borrow over 80% of the property value. The exact value of the premium will vary depending on how much your property costs and a number of other factors.
- Splitting fee. $100. If you decide to split your loan you'll need to pay this fee.
- Establishment fees. $0. This fee is usually $300, but is waived with the Premier package.
- Valuation fee. You'll receive one free valuation with this loan worth up to $215.
- Settlement fee. $150. This is charged to cover the costs of transferring your loan amount to you but is waived as part of this loan.
Fees you can't avoid
- Monthly fee. $35 a month ($420 a year). This fee is slightly above the average charged for a package loan and is charged to be a Premier member.
Know how much you want to borrow? Use our calculator to find out what your repayments will be
How to apply for this loan
Remember to qualify for a HSBC Premier Discounted Standard Variable Rate Home Loan you need to have a minimum of $500,000 in loans or a minimum of $200,000 in savings or investments with HSBC, or have combined loans and savings with HSBC of $500,000. You must also maintain a HSBC Cash Management Account.
To find out more or apply for this loan click the 'Go to site' or 'find out more' buttons below or on the side of this review.
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HSBC Premier Standard Variable Home Loan Interest Rate History vs RBA Cash Rate Graph
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