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4.59% (5.39% comparison rate) p.a. Home Loan Fixed for 2 Years from HSBC No Monthly/Package Fees

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4.59% (5.39% comparison rate) p.a. Home Loan Fixed for 2 Years from HSBC No Monthly/Package Fees
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Pxtremelywild on 17/06/2013 - 13:05 hsbc.com.au (1954 clicks)
Last edited 17/06/2013 - 13:44

Further to my previous post http://www.ozbargain.com.au/node/103822

HSBC is now offering the best Fixed rate for 2 years and than an on-going 0.70% p.a. off our Standard Variable Rate. The comparison rate of 5.39%p.a isn't bad either. And no package fees or ongoing fees.

Stuff from the website:-

HSBC Fixed Rate Home Loan

Take advantage of a low 4.59% p.a. home loan fixed for 2 years

Here's something you can rely on. Apply for an HSBC Fixed Rate Home Loan, and enjoy the incredible rate of 4.59% p.a., fixed for two years. You'll enjoy premium service with a dedicated HSBC Relationship Manager, who will guide you through the home loan application process, and - if required - contact your current lender for you to arrange to move your existing home loan over.

Then, enjoy an on-going 0.70% p.a. off our Standard Variable Rate* after the fixed term.

HSBC Fixed Rate Home Loan Benefits

  • Low interest rate of just 4.59% p.a. fixed for 2 years
  • 0.70% p.a. off our Standard Variable Rate* after the fixed term
  • No monthly fees
  • Premium service with a dedicated Relationship Manager
Financial Home Loan

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closed Comments

  • mducpham on 17/06/2013 - 13:16

    available to new borrowings of 250k or more :)

    • xtremelywild on 17/06/2013 - 13:47
      -4

      Its say's new borrowings and not new purchases.

      • aec on 17/06/2013 - 14:23
        +7

        it is what he said.

  • Riceboy on 17/06/2013 - 13:27

    Do you have to go variable or can you refix after two years.
    What about leaving all together if you dont like either option. Whats exit fee?

    • xtremelywild on 17/06/2013 - 13:49

      Yes you go back to a variable rate with would be 0.70% p.a. off our Standard Variable Rate.

      You can refix at that times fixed rate of interest or move to another bank all together.

  • lousy on 17/06/2013 - 13:37
    +1

    I thought legally banks can no longer charge exit fees ? What type of account ? Any offset facility available ? Interest only ? Or principal and interest repayments ?

    • xtremelywild on 17/06/2013 - 13:50

      I am not 100% sure on this one but good to ask them, No Offset as they do not charge package fees and I would presume you can have interest only.

    • JayCeeJay on 17/06/2013 - 13:57

      correct - but if you've signed up pre-changed regulation, then you're still stuck with it.

    • ayubleh on 17/06/2013 - 14:35

      if you fix the interest rate, there will be exit fees tho, just take note of that

  • hsct on 17/06/2013 - 13:43

    Check their fees (e.g. Loan establishment, Settlement, Valuation, Government charge, Premier account), they're roughly around $1000 upfront, whereas these fees are usually waived by all Big 4 banks. Nevertheless the fixed rate of 4.59% is unbeatable.

    • xtremelywild on 17/06/2013 - 14:07

      I agree with hsct they have fees which you can get waived at Big 4 but the big are not offering 2 year fixed without a package fee. So I think would pay approx $800(not $1000) for this loan with HSBC upfront where as with other Big4 you might end up paying them as package fees over two years.

    • tonester on 17/06/2013 - 16:12

      you can always ask for them to be waived :)

  • hoiboy on 17/06/2013 - 13:49

    Hi guys,

    Anyone got any thoughts on how this compares with MyRate? I'm a bit sick of them and thinking about paying the exit fee (got 2 more years to go) to change providers.

    • betheball on 17/06/2013 - 14:03
      +1

      Have a look at Ubank or loans.com.au. I'm with Ubank

    • ProggerPete on 17/06/2013 - 15:34

      Nevermind….

    • scud70 on 17/06/2013 - 17:44

      Hi Hoiboy,

      i'm with myrate, just wondering why is main reason your sick of them?, i have two big loans with them now after just purchasing a second property and was wondering what issue's you have faced or are facing… :) just good to know …

      they must be big to be happy to pay exit fee's ….

      thanks

  • CyberMurning on 17/06/2013 - 14:03

    hsbc beats ubank? amazing…

  • THEMAN_AUS on 17/06/2013 - 14:07

    I sent a msg via the website. hope to get a call.

  • GateheaD on 17/06/2013 - 14:10
    +1

    I have $50,000 and was looking at a place between $200,000 to $260,000.
    I'm guessing this is no good to me, or does the loan count as $250,000 even if I put $50,000 down.

    • JayCeeJay on 17/06/2013 - 14:17
      +1

      only the loan amount … your case would be less 50k so wouldn't qualy

    • cbpeh1 on 17/06/2013 - 14:25
      +7

      whereabouts in australia can one find a house less than $250K?

    • [Deactivated] on 17/06/2013 - 17:04

      Get a $280000 home and loan 90% of the value ($252000), then throw remaining cash into loan after it's established.

      But probably shouldn't decide your home based on what the current interest offering is.

      • Tiger on 17/06/2013 - 17:23

        Higher Mortgage Insurance cost if you do that and possibly a prepayment penalty.

      • Steptoe on 18/06/2013 - 06:51
        -1

        Good luck getting a Bank Valuation greater than the purchase price. That's stuff for Rental Investment Books of the past IMO.

  • bex000 on 17/06/2013 - 14:18

    what is the LVR requirements?

  • [Deactivated] on 17/06/2013 - 14:22
    +6

    Pls also factor in the comparison rate…the base rate, although attractive, means diddly squat…Banks need to make money some how. So think COMPARISON RATE - which is 5.39% on this offer.

      • xtremelywild on 17/06/2013 - 15:13
        +1

        For the interest of the community can you please be specify which lender are you talking about. Please even specify any ongoing or upfront fees.

        • xtremelywild on 17/06/2013 - 15:19
          +1

          Forgot to mention HSBC was also offering 4.99%pa with a comparison rate of 5.01%pa till 15th of June http://www.ozbargain.com.au/node/103822.

          We can always try to ask if you can still signup under that offer. The good thing with HSBC is not on-going fees and 90%LVR.

        • mick123 on 24/06/2013 - 15:48

          Their (firstmac) website states:

          Govt fees and charges - at cost
          Title insurance - at cost
          Title search, bank cheques & agent fee - at cost
          Discharge outlays - at cost

          How many of these fees apply to refinancing?

          Personally, I don't mind approx $700-$800 fee at the beginning if no annual fee for offset account.

    • spacejase on 17/06/2013 - 16:52

      how can it be 5.39% comparison rate if they don't have any fees?
      (the info isn't on their website anymore)

      am I mssing something here

      • Tiger on 17/06/2013 - 17:30
        +3

        Comparison Rate is based on a 25 year term. This fixed rate is only for 2 of those 25 years. The other 23 years is at a higher variable rate.

    • scud70 on 17/06/2013 - 17:45

      100% right… comparison rate is the actual figure you are paying not the base.. if it was me i would make it illegal to even advertise that rate..

      • lousy on 23/06/2013 - 12:52
        +1

        You can switch after the two year period in which case the comparison rate becomes moot - you will just need to factor in the costs of transferring in and out of this bank to work out whether its worthwhile for you

  • delfredo on 17/06/2013 - 14:27
    +2

    HSBC does not have variable rate loan with offset account so you can't do split loans like you can with the Big 4 (with offset account flexibility). I assume that this would be important for investors for tax reasons.

    • martyn on 17/06/2013 - 15:15

      That is strange as I have a HSBC variable rate loan with an offset account? I suppose they could have discontinued that product…

    • tonester on 17/06/2013 - 16:11

      as above check that their offset savings account is no longer available before discounting hsbc
      https://www.hsbc.com.au/1/PA_ES_Content_Mgmt/content/austral…

      you have split fixed/variable loans and of course there's always redraw :)

  • padutz on 17/06/2013 - 14:31
    +3

    I'm a mortgage broker and this is the best 2 year fixed rate I've seen. It just depends if you want to be locked in for the 2 years and how much extra you can put per year. Loans aren't always about rate, features and service are also very important.

    • ayubleh on 17/06/2013 - 14:36
      +1

      what service is there with mortgage brokers..? other than the first day of excellent service during signing of contract, the next few months are just automated emails?

        • ayubleh on 17/06/2013 - 16:04

          no offense, but when people sign up for fixed interest loans for 10+ years, even if the interest decreases, break costs are so high anyways for any possibility of changing the loans.

          Only possibility is when people sign up for variable rates, and when banks decrease the interest rates, relationship managers can email them for a possible package change but even so more often than not, customers have to bring superior bank rates themselves from other banks to pressurize their relationship managers to follow their rates.

          I dont blame what you are doing, but it is the way banks are designed to obtain maximum profits.

          *from bad experiences from 3 different banks, and 1 of which I had to contact the financial ombudsman just to obtain help.

        • rambokid on 17/06/2013 - 16:40

          hi Shannon

          are you in melbourne? Maybe i can have my home loan assessed by you?

          Regards,

      • CyberMurning on 17/06/2013 - 14:58

        i would love to trade service with 1% discount

        • [Deactivated] on 17/06/2013 - 16:21

          In fact, it is closer to a 20% discount for a 1% reduction in interest rate about now.

  • rohanp16 on 17/06/2013 - 14:44

    Where has the official link with the details gone ?

  • billybrown on 17/06/2013 - 15:26
    +14

    thanks, grabbed a couple of houses

    • Jake D on 17/06/2013 - 15:28
      +7

      Look for them on ebay once the deal ends.

  • bpdoz on 17/06/2013 - 15:40
    +1

    A very low rate. I wish I had a crystal ball what's going to happen in 2 years time.

      • mick123 on 17/06/2013 - 20:02
        +2

        PissLUR went to the Wayne Swan school of economics

    • noz on 18/06/2013 - 08:43

      Surely he's taking the piss

  • almostfrench on 17/06/2013 - 15:42

    If 4.59% p.a. fixed for 2 years, will fixed for 3 years be the same or higher?

    • padutz on 17/06/2013 - 15:47

      It should be higher.

      • danyool on 17/06/2013 - 16:12
        +1

        Haven't checked any others, but CUA has 4.99% for 3 years. (from ad on tv) http://www.cua.com.au/

        • almostfrench on 17/06/2013 - 17:10

          HSBC offered me 4.79% fixed for 3 years more than a week ago. Compares to this offer, that's about right don't you think?

  • [Deactivated] on 17/06/2013 - 16:11
    +2

    hmm…all of the sudden, the post has been filled with mortgage brokers…Anyway, I have quite a few loans with a Big 4, all on variable and all with base rate of 5.15%…comparison is about 5.29% but I am sure it's slightly lower as I have all my monthly fees waived also (including all my normal bank accounts). I've done a lot of shopping to benchmark the performance of my loans, and nothing thus far has made me want to switch. People complain about the Big 4, well this one I am with wins trumps!!! I have built a really good relationship with the home lending broker for that bank…Finance usually approved within 1 week! Sounds too good to be true; doesn't it?

    Also…if u want to fix your rate…BE WARNED!!! If u want to fix for 2 years, don't even think about extra repayments or selling your place…The exit fees on a fixed rate are big big big…There's a reason why it's called a fixed rate…When u fix a rate, the bank goes out to the open market to borrow the money to lend to you for that term. So if u break the term, the bank will have to oncharge all/part of the interest due to for that term.

    I am no financial planner and my advice is just that…please do your own research…

    • [Deactivated] on 17/06/2013 - 16:14
      +2

      Forgot to add….when u fix a rate, u r going against the economists and financial analysts…I would only ever consider fixing if I wanted certainty..and the way the Aussie economy is going, I see rates going down at least once more…again, my comments not financial advice. Do your own research.

      • overlook on 17/06/2013 - 19:21

        nice siuloongbao, just the fact that you think rates going down at least once more, you think banks will pass on the discount? not saying you are wrong, but you must be a hell lot of pro to know where bottom is. Low enough is what everyone wants, also I am sure by the end of 1st year the interest will go up you probably not saving much if you only fixed 2 years. That is why all banks have the low fixed interest rate now. THEY KNOW THE BOTTOM IS HERE SOON.

        http://www.bloomberg.com/markets/rates-bonds/government-bond…

        This could add to your research too.

    • royus on 17/06/2013 - 16:16

      which bank/product, siu_loong_bao? did you have to negotiate?

      • [Deactivated] on 17/06/2013 - 16:22
        -1

        I can't disclose it..It is one of the Big 4, been doing business with them for many years..I got around 4 loans with them at the moment…Speak to the brokers, they may be a good alternative to get u similar….But end of the day, u cant just expect it…it takes relationship building.

        • Ahan on 17/06/2013 - 17:05

          You have four loans at the moment? Well, you are the tpye of people the bank love..

  • bajillionaire on 17/06/2013 - 16:54

    Great fixed rate, but remember banks fix rates based on where they think the market is heading (ie another rate cut).

    Keep in mind loans.com.au have a variable rate 4.75 for purchases and 4.87 for refinancing.

    And as always re: financial situations, YMMV.

  • spacejase on 17/06/2013 - 17:03

    I need some help so…………….

    How is the Comparison Rate Calculated? (with example)

    The comparison rate is calculated based on the following numbers, no matter what your loan size is:
    •$150,000 loan amount
    •25 year term
    •principal and interest loan

    As shown above, the loan amount is actually based on $150,000, which is much smaller than the average home loan size in Australia (at the time of writing the average is $365,000). This means that any home loan that has fees associated with it, those fees have a larger than expected impact on the comparison rate.

    For example, let’s look at NAB’s professional package: NAB Choice Package Home Loan. The example would be similar for CBA’s Wealth Package, St George’s Advantage Package, Westpac’s Premier Advantage Package and ANZ’s Breakfree Package.
    •NAB Choice Package home loan details:
    •Interest rate: 6.97% p.a. (please note: this rate is accurate at time of writing)
    •Establishment fee: $0
    •Monthly fee: $0
    •Annual fee: $395

    Because of the way the comparison rate is calculated, the comparison rate for this product is 7.31% p.a. Let’s have a look below at two examples, one with a loan size of $150,000 and another with a loan size of $500,000 so you can see how the proportion of fees effects the cost of your home loan.

    $150,000 loan size
    •Term: 25 years
    •$167,190 in interest over 25 years
    •$9,875 in fees over 25 years
    •$177,065 in total over 25 years (excluding principal component)
    •5.6% of cost is made up in fees ($9,875 / $177,065)

    •$150,000 at 7.31209% interest over 25 years with $0 fees gives you exactly $177,065 in interest.
    •7.31209% rounded to 2 decimal places is 7.31%
    •= 7.31% comparison rate

  • burningrage on 17/06/2013 - 17:23

    I would probably not trying to go complicated and just go by this:

    How much interest will I be paying?
    How much are the Fees and Charges applicable?
    and Can I do offset and/or interest only repayment.

    Lately I have been following this, I found the non-big 4 (Citibank/HSBC) give better rates vs big 4 (BOM is probably closer to competitive). Citibank is even better when you are Citigold customer (extra 0.2% off). At current, it means 5.04% var rate. Their 2 yrs fix is 4.89%. This is too high and I expect them to adjust sometime perhaps this month.

    You shouldn't be paying more than $350 for prof package.

    And if you can do offset, go for interest only repayment. Saves repayment amount and have the same effect as offset with P&P.

    Cheers

    Brage

  • demiurge on 17/06/2013 - 19:15
    +1

    That's pretty low, in fact lower than some savings accounts! Why wouldn't you just borrow as much as possible and then park all your cash for two years (or until interest rate drops) in a savings account? However RBA interest rate does look like going down further.

    • overlook on 17/06/2013 - 19:22

      which savings account have more than 4.59%? I AM SIGNING UP NOW!

    • burningrage on 17/06/2013 - 19:54

      Could you actually borrow money for investment at this rate?

      • JetBombat on 17/06/2013 - 20:00

        if you investment is a house why not? : )

    • Cluster on 17/06/2013 - 21:45
      +1

      Why you wouldn't borrow $250k from HSBC for 4.59% and park it in a term deposit at a slightly higher rate:

      • No bank would lend you the money. You need to prove it's for the purchase of a house (and therefore provide collateral if the loan goes bad).

      • You have to pay tax on the term deposit interest, making the effective return rate much lower than 4.59%. If you have your affairs structured such that you wouldn't pay the tax, you likely wouldn't care about the tiny profit being made or are retired therefore couldn't get the loan anyway.

      • Tiger on 18/06/2013 - 10:45

        Agree with your second bullet point, but have to disagree with your first.

        Many people already have equity in their property or own their house outright. They can use this as collateral and invest the money in a Term Deposit or High Interest Saving account. The Banks will not have a problem as it is considered an investment loan.

  • bluebluebird on 17/06/2013 - 22:52

    I have an interest only mortgage loan with no monthly fees/package fee with Bankwest at loan amount $332,000 at 5.34% … a difference of 0.75% … will be a savings of $4980 for 2 years … it is going to take 3x 0.25% cut for the break-even; am i thinking right???

    • Steptoe on 18/06/2013 - 07:02

      At the end of the 2 years your Bankwest rate will be lower though than this offer. Not sure I/O (with offset?) is available on this product.

  • MelbBargainChaser77 on 18/06/2013 - 07:24

    Look at the comparison rate. How they are legally allowed to use any figure other than the comparison rate is just astounding. I cant recommend Bankwest enough, I have an online home loan with them for 5.13% variable comparison rate. If you look hard enough I know there is at least 2 lenders that have a sub 5% comparison rate for their variable products also.

  • halfnhalf71 on 18/06/2013 - 11:02
    +1

    So i'm with State Custodians and never had a problem but never really had to speak with them.
    Their standard variable has a comparison rate of 5.09% with up to 95% LVR
    Their standard fixed loan has a comparison rate of 4.96% with up to 95% LVR and can be split
    Both have offset accounts. They also do a loyalty bonus of a further 0.25% drop after 5 years.
    Worth considering IMO

  • Valview on 18/06/2013 - 11:09

    Thanks xtremelywild for HSBC with 90% leverage, I'll suggest it to girlfriend.
    I just refinanced from Westpac as I had just reached 20% ownership. Initially applied to ubank, unsuccessful but recently got accepted with loans.com.au. The paperwork for ubank was triple that of loans.com.au.
    Ubank & loans.com.au both sent valuers around: ubank 540k (similar to what I paid for it 4yrs ago) and loans.com.au 650k. The latter is what similar homes are selling for. As valuers valuations would not be a black art, I think ubank 'adjusted' the valuation, perhaps thats how they can offer 100k for renovations.
    My house is a 45yr old double brick and tile with the eaves made from asbestos which are sealed behind a good coat of paint. Ubank said they couldnt finance a home containing asbestos. However when I rang back and made an anonymous enquiry the person said asbestos would not be a problem.
    I think ubank have a policy of not taking on any risk.
    If one wants the security of a bricks and mortar bank with the online rate ubank would be worth the effort of jumping through hoops. Otherwise loans.com.au is easier to apply and features an offset account.
    Online banks dont advertise settlement fees as everyone's is different. Mine were $695 which I'll recoup in 6 to 12 months of interest savings.
    Happy ozbargaining everyone

  • congo on 24/06/2013 - 11:26

    Does anyone know if HSBC takes leasehold property?
    I am currently with NAB.
    Thanks.

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