5 home loan rates cheaper than HSBC that could save you $ today
Key takeaways
- HSBC is exiting consumer banking, so existing home loan customers will eventually be moved to another lender.
- There are plenty of home loans below 6% that could save HSBC mortgage holders hundreds of dollars a month.
- You don't need to rush, but comparing your options now could help you save money sooner on your mortgage.
HSBC has a pretty sharp home loan rate right now, but it's no longer available to new customers – and existing customers will be moved to another lender early next year.
It's all part of HSBC's decision to pull out of consumer banking in the Australian market.
→ You don't have to take action right away, but being proactive here could save you a pretty penny.
You can currently find several cheaper options than HSBC's Home Value Loan has a variable rate of 6.39% p.a. for owner-occupiers with an LVR of up to 80% or less. It also has no ongoing or annual fee, which is competitive.
But if you're willing to invest an hour of your time, you could pocket hundreds (if not thousands) in mortgage repayment savings by shopping around.
Here are 5 variable rate home loans below 6% worth checking out:
1. Virgin Money Lite Variable Home Loan – 5.84% (comp rate 5.80%)
This loan is currently advertised at 5.84% p.a. for loans of $150,000 or more. With no application or ongoing fee, it also gives borrowers the chance to earn Virgin Money Reward points for making repayments on time.
- HSBC at 6.39%: $4,560/month
- Virgin Money at 5.84%: $4,300/month
- Monthly saving: $260/month
- Annual saving: 💰 $3,120
2. Unloan Variable Home Loan – 5.89% (comp rate 5.85%)
Benefit from no application or ongoing fees, and Unloan automatically reduces your rate by 0.01 percentage points each year you have the loan. You could also be eligible for a $1,000 digital Visa gift card through Finder.
- HSBC at 6.39%: $4,560/month
- Unloan at 5.89%: $4,325/month
- Monthly repayment saving: $235
- Annual saving: 💰 $2,820
3. Newcastle Permanent Real Deal Home Loan – 5.99% (comp rate 6.03%)
There's a $350 application fee and the interest rate is slightly higher than the first two in our list, but there are no ongoing fees. Eligible purchasers and refinancers can also get up to $3,000 cashback, depending on the loan value.
- HSBC at 6.39%: $4,560/month
- Newcastle Permanent at 5.99%: $4,370/month
- Monthly saving: $190
- Annual saving: 💰 $2,280
4. Greater Bank Great Rate Discount Variable Home Loan
– 5.84% (comp rate 5.85%)
This loan is advertised at 5.84% p.a. for owner-occupiers with at least 10% equity, making this loan suitable for those with a little less equity built up – although you may then be up for lender's mortgage insurance. There are no application or ongoing fees, and eligible borrowers can get up to $3,000 cashback.
- HSBC at 6.39%: $4,560/month
- Greater Bank at 5.84%: $4,300/month
- Monthly saving: $260/month
- Annual saving: 💰 $3,120
5. IMB Budget Home Loan – 5.99% (comp rate 6.02%)
If you have a guarantor involved in your home loan, IMB could be worth a second look, as they'll let you borrow up to 110% of the property's value. There's a $449 application fee to factor in, but no ongoing fees. Eligible borrowers can also get up to $4,000 cashback after their loan settles.
- HSBC at 6.39%: $4,560/month
- IMB at 5.99%: $4,370/month
- Monthly saving: $190/month
- Annual saving: 💰 $2,280
All examples and calculations are estimates only, based on 80% or less LVR, principal and interest loans, variable rate, 30 year loan term, and a loan size of $730,000, the current national average.
How much could you save by refinancing?
A lower interest rate can make a meaningful difference when you refinance, both immediately and over the life of a mortgage.
We're talking about a debt worth hundreds of thousands of dollars, so even a small change in the interest rate can compound to be worth thousands or even tens of thousands of dollars over time.
Keep in mind that the rates above aren't necessarily available to every borrower. Your loan to value ratio (LVR), loan amount, property type, income and other lending criteria can affect the rate you're offered. If you have more equity in your loan, for instance, you may be eligible for even cheaper interest rates.
Not ready yet? Don't panic – HSBC is still competitive
HSBC currently charges 6.39% for owner-occupier borrowers with an LVR of 80% or less; it's just 5.99% when the LVR is 60% or less.
It comes with no monthly or annual fee, unlimited extra repayments and free redraws, which means you don't necessarily have to take swift action to switch.
But with HSBC's home loan book expected to be sold to Pepper Money in the first half of 2027, you could save big money by moving your loan sooner.
Compare your current rate with the latest home loans. You might even qualify for a cashback deal
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