HSBC Home Loans: The 2026 Review

HSBC Bank Australia Limited was established in 1986, originally known as Hongkong Bank of Australia Limited. Its origins trace back to 1964 with Hongkong Finance Ltd. Over the years, HSBC has grown significantly, establishing a robust presence in Australia. The bank operates 38 branches nationwide, with its headquarters located in Sydney, New South Wales.

Today, HSBC positions itself as a strong alternative to the Big 4 banks in Australia, offering competitive interest rates and personalised services. With a business model that includes both branch and online delivery, HSBC caters to a diverse clientele. Its international reach is a key differentiator, appealing to clients who require global banking solutions.

HSBC primarily targets international clients and the migrant community, offering products that include fee waivers and discounted rates. The bank's home loan offerings are particularly attractive, with features such as unlimited additional repayments on the Home Value Loan. Despite some noted challenges with fees and service accessibility, HSBC's focus on competitive pricing and international connectivity remains a significant draw for many borrowers.

• Legal Name: HSBC Bank Australia Limited
• ABN: 48006434162
• Established: 1986
• Headquarters: Sydney, NSW
• Type: Subsidiary
• Ownership: Independent

• Website: https://www.hsbc.com.au
• Phone: 1300 308 008
• Address: Level 36, Tower 1, International Towers Sydney, 100 Barangaroo Avenue, Sydney NSW 2000

HSBC offers home loan borrowers a range of flexible and cost-effective features, including unlimited free redraws and the ability to make up to $10,000 in extra repayments annually, enhancing financial management and savings.

• Extra Repayments: HSBC allows borrowers to make up to $10,000 in extra repayments per year without incurring fees. This feature enables borrowers to reduce their loan balance faster, potentially saving on interest over the life of the loan.
• Unlimited Free Redraws: Borrowers can access unlimited free redraws, providing flexibility to withdraw extra repayments if needed. This feature offers financial flexibility, allowing access to funds for unexpected expenses or investment opportunities.
• Online Transfers: HSBC's home loans support online transfers in and out of the loan account. This convenience allows borrowers to manage their loan from anywhere, ensuring seamless financial management and accessibility.
• Offset Account: A 100% offset account is available, allowing borrowers to reduce the interest payable on their loan by offsetting their savings against the loan balance. This feature can significantly decrease the overall interest cost, enhancing savings.
• Automatic Budgeting and Bill Payment: HSBC loans can be linked to an automatic budgeting and bill payment service. This integration helps borrowers manage their finances efficiently, ensuring timely payments and better budgeting.
• Fee Waivers: For Home Loan Package customers, establishment, valuation, and settlement fees are waived. These waivers provide immediate cost savings, making the loan more affordable from the outset.
• Rate Lock Option: A Rate Lock option is available for a fee, allowing borrowers to secure interest rates during the application process. This feature protects against rate increases, providing peace of mind during the loan approval period.
• Digital Wallet Link: HSBC home loans can be linked to a digital wallet, offering borrowers the convenience of managing their loan and related transactions digitally. This feature enhances ease of access and financial management.

HSBC offers a detailed fee structure for its home loan products, with several fees subject to waivers during promotional campaigns, enhancing transparency and potential savings for borrowers.

• Establishment Fee: $600 - Charged when processing a customer's loan application. Waived during promotional campaigns.
• Valuation Fee: Variable - Applied when a valuation is required as part of the loan application. Waived up to $200 during campaigns.
• Guarantor Preparation Fee: $100 - Charged when preparing a guarantee document if a guarantor is involved.
• Settlement Fee: $150 - Applied when the loan is first drawn. Waived during promotional campaigns.
• Home Loan Package Fee: $390 (Annual) - Charged when selecting the home loan package and annually thereafter. Applies per borrowing entity.
• Discharge Fee: $395 - Applied when discharging the mortgage over the security property.
• Loan Variation Fee: $300 - Charged when a variation to the loan agreement is agreed upon.
• Break Costs: Variable - Payable if switching interest rates or products during a fixed interest period, or if prepayments exceed $10,000 annually.

HSBC offers home loans to Australian residents, providing competitive rates and flexible repayment options for eligible borrowers.

• Applicants must be at least 18 years old.
• Applicants must be Australian residents.
• Minimum borrowings of $150,000 are required for the Home Loan Package.
• An annual package fee of $390 applies, deducted at settlement and charged annually on the loan anniversary.
• A deposit or equity of 10%-20% is typically required.
• Applicants must demonstrate the ability to repay the loan, typically through income and employment verification.
• Good credit history is generally required for approval.

• Loan-to-Value Ratio (LVR) above 80% may require Lenders Mortgage Insurance (LMI).
• Fixed loans have a cap on extra repayments, with break costs if limits are exceeded.
• A Rate Lock option is available for a fee, securing interest rates during the application process.