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HSBC - Home Value Loan - Variable 3.99% (4.05% Comparison) - Owner Occupier Only

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HSBC - Home Value Loan - Variable 3.99% (4.05% Comparison) - Owner Occupier Only
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T-man on 11/08/2015 - 21:18 hsbc.com.au (1025 clicks)
Last edited 11/08/2015 - 21:19

I was searching and comparing the home loans. Eventually, I visited HSBC and discovered that their home loan rate isn't bad and very competitive with others. I don't really like HSBC because of the complexity of their banking security system and I just opened an account with them to get $50 bonus and closed the account.

If anyone has the experience with their home loan, please share. Thanks.

Stuff from the website:

HSBC Home Value Loan features

  • Stay in control with the flexibility to redraw any additional payments any time.
  • Discounted rate and no ongoing monthly fees for the life of your loan.
  • Your personal Relationship Manager will guide you through the entire process whether you're buying, moving or refinancing.
  • Change to a great HSBC Home Loan using HSBC Easy Switch, a service provided by HSBC to help you change selected Home Loans quicker.
  • Option to pay Principal and Interest or Interest Only for a maximum of 3 years. If you pay interest only, monthly repayments are required.
  • Schedule your repayments to match the timing of your income. You can choose Monthly, Weekly or Fortnightly.
  • Get up to date balance information about your home loan account through our internet and telephone banking.

Available on new borrowings of $50,000 or more when you apply by 16 October 2015. Owner occupier only. Other fees and charges apply.

Financial Home Loan

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closed Comments

  • Iwantthatbargain on 11/08/2015 - 21:20

    Can anyone advise is Variable interest rate better or Fixed Loan better?

    • BensonP on 11/08/2015 - 21:30
      +2

      You should speak to a financial advisor or mortgage broker, buddy.

      Fixed is great if you want your repayments the same for a few years.

      Variable is better if you want to make extra payments or have full offset accounts.

      Many, many more things to take into consideration.

      • Tiger on 12/08/2015 - 16:20
        +1

        BensonP makes a lot of sense, but here are a couple of qualifications:

        1. A Financial Advisor is not legally able to (nor the correct person) to give credit advice, unless he/she also holds a Credit licence/authority to give this credit advice. All Mortgage Brokers do have a licence/authority.

        2. There are Fixed Rate Loans with full offset accounts (not with HSBC) and/or the ability to make extra repayments/redraw.

    • tomleonhart on 12/08/2015 - 20:12
      +1

      Broker here.

      Variable interest rate gives you the flexibility.
      Fixed rate loan gives you the peace of mind.

      Which one is better ? Your choice :)

  • coprocessor8087 on 11/08/2015 - 21:29

    |Owner occupier only|
    Forever ? Can I live there for a day before renting it out ?

    • RtN on 12/08/2015 - 09:58

      What happens if I live in it and no longer afford to and must rent it out. Am I stuck and must sell the house or can I rent it out?

      • Tiger on 12/08/2015 - 11:31
        +2

        Most Loan Agreements will require you would have to advise the Bank if you are using their security property for a purpose other than what you originally intended, otherwise, you would be in breach of contract. You can't rent out the property without consent from the Lender. Even if you don't inform them before renting it out, they can find out by other means (like changes to mailing address, insurance, bank transactions etc.). Once you inform the Bank, they will require you to change it to an Investment Loan. You may even need your loan statement to clearly show it's an Investment Loan so you can claim the interest for tax.

    • tomleonhart on 12/08/2015 - 20:18

      Broker here.

      by Owner Occupied they meant they won't factor in rental income in their serviceability calculation.

      In the past let's say you live with mum and dad and your income is not enough to service a loan but you want to buy a place to live in. You can apply for an "investment loan" where bank will use your income + proposed rental income for servicing.

      Hope that makes sense

    • Herbert on 12/08/2015 - 23:59

      APRA set a 10% increase cap on bank's property investor lending, tightening serviceability check and increase capital adequacy requirements. That's why every bank is offering better deals to owner occupiers.

      As long as you have enough income to prove to HSBC that you can comfortably service a new loan at number crunching time, you can apply as owner occupier. It is harder to get approval as all rental income would be discounted to 50% during income calculation compared to 80% before.

  • NotAMoodle on 11/08/2015 - 21:40

    Has anyone actually used their easy switch service? (or something similar) Is it really as easy as they say or do you literally have to reapply as if you were trying to purchase a new mortgage?

    • Japius on 11/08/2015 - 22:01
      +1

      Haven't used it but it sounds like marketing spin. I've never had to talk to the previous bank when refinancing, they're making it sound like its out of the ordinary for the new bank to handle all the paperwork of switching, only thing that is kind of new is the unattended settlement but a lot of banks facilitate this now as long as it's straight forward and you're not changing any party names and don't involve trusts etc. stil it's good to have a person to contact and not just a general home loan number

      But yes you still have to apply and be approved by HSBC first

      • NotAMoodle on 11/08/2015 - 22:22

        Thanks :)

        • clubhonda on 12/08/2015 - 21:50
          +1

          I think their easy switch works like a fast refi which can settle and discharge within 7 days compared to the traditional 4-5 weeks it takes to refinance over, and the constant hounding of your existing bank to get it done with.

  • bleugh on 11/08/2015 - 21:53
    +3

    Great offer but be prepared for a lot of "computer says no" incidents

    I walked away from them a few years ago, too much hassle, not enough branches .

    Hugely Sh1tty Banking Corporation

    • fuzor on 11/08/2015 - 23:08
      -7

      They're also dodgy as. I went to Hong Kong recently and they were bloody printing the legal tender banknotes. This is the first and probably only time that I would see a privately owned bank printing out $100 currency for public use.

      Its hard enough for government departments to keep themselves from corruption, let alone outsourcing something like this to private interest.

  • FiDad on 11/08/2015 - 22:21
    +2

    I believe no Offset account. At least I can't find any mention of a offset account on the website

  • BrianGriffin on 11/08/2015 - 22:55

    Available on new borrowings

    damn for existing customers

    • smoo on 12/08/2015 - 07:32

      Just call them and ask for a better rate, if they say no threaten to go to another bank.

  • whiteflame on 11/08/2015 - 23:50

    damn no off set.

  • onlyletters on 12/08/2015 - 15:33

    Sometimes paying the extra 1% with a bigger bank is worth it, if you ever lose your job or become ill, the bigger banks are more likely to be compassionate and suspend your loan while you find work, or get better.

    • coprocessor8087 on 12/08/2015 - 16:01

      Don't reply on the 'bigger' bank to be 'compassionate'. Prepare yourself for the rainy days….. That means..less ozbargain spending.

    • OZGE on 12/08/2015 - 19:52

      FYI - HSBC bank is largest bank in UK and ranked fourth largest in the world! Here is the list, we dont even see ANY of the Australian so call Big Four banks listed in the top 20 in the world. https://en.wikipedia.org/wiki/List_of_largest_banks

      • xsacha on 13/08/2015 - 05:06

        That is by assets because HSBC is global and hence requires more assets.
        By market cap, HSBC is 9th and Commonwealth (CBA) is 10th.

        • OZGE on 13/08/2015 - 19:32

          That is correct, so in summary by total assets, ALL Australian Big Four banks are out of the Top 20 in the world, due to the Australian market is so small compares to all these other banks at the international stage!

          Whereas by Market capitalisation HSBC is still 1.4 times bigger than biggest Australian Bank CBA, yet most Australian does not know who is HSBC funny that…

        • xsacha on 16/08/2015 - 10:11

          @OZGE: i think it shows that CBA rips off its customers since it can get similar investment as a global bank like HSBC but without being global :p

          I see HSBC a lot in the city and through their marketing such as this.

    • clubhonda on 12/08/2015 - 21:54
      +1

      You would have to be crazy to want to give away 1%, which is 100 basis points! Use a repayment calculator to work out the difference of a 1% interest and it can go to several hundred thousands over the life of the loan. And like others said, its crazy to expect any bank to be compassionate. You need to build enough of a buffer to ensure if anything happens, your lifestyle and home is protected. This is where income and trauma, etc protection comes in. Not relying on banks which are evil.

    • xsacha on 13/08/2015 - 05:07

      Paying an extra $4k+ a year in interest is never worth it. You'd be better with income insurance than expecting a bank to wait for you.

  • tmacz1 on 13/08/2015 - 07:24

    Has anyone tried to get a better rate after showing these ads at any of the big 4 banks ..

    • tomleonhart on 13/08/2015 - 09:30

      Big 4 don't match rate that are not from Big 4 :D

      • footyboy on 14/08/2015 - 15:43

        Mortgage broker here.

        Of course they do! We do it every day and it gets accepted from ING, St G etc.

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