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HSBC Premier Home Loan Variable Rate 4.05% (Comparison Rate 4.47%) - Owner Occupier Only

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I just bought a house and am going through the different loans in the market. I spoke to HSBC and was told about this offer. Apparently it is a new offer that will replace their current one which is expiring soon (https://www.ozbargain.com.au/node/206623).

The rate itself is pretty good for an offering from a full service bank. When I was at the branch, they also told me that they can also waive some fees (e.g. application fees).

I know some people has complained that HSBC's internet banking is pretty bad, but I have managed to do most of my banking online with them and is reasonably happy.

I would probably take up the offer as other alternatives didn't seem to be that good, i.e.:
- ING is 3.99% (either through a broker or direct) - probably my second option, but I do quite a bit of International Banking with HSBC so the 0.06% difference may not matter so much.
- ANZ is 4.33%
- Ubank is 3.99% - no offset, only redraw facilities

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closed Comments

  • 4.47% comparison rate does not compare well to the 4.05% comparison rate of the previous deal you reference.

  • Good only if they waive the $35/ monthly fee. They already charging you 4.05% interest. 420/year fee is unjustified imo.

  • +2 votes

    I wouldn't touch HSBC with a 10 foot pole.

    How is it a deal when they're increasing the rate, and what does this tell you about their likelihood to further increase outside of RBA-led increases?

    • they are quite different deals…
      this one (4.05%) has got an offset account
      the other one (3.99%) doesn't… they are just different products

      from my research, most banks would charge slightly higher interest for offset accounts

  • ING is doing 3.99% p.a (comparison 4.19% p.a.) with offset and plenty of cash back. Why don't you go with them ?

    • Very good point.
      I guess it comes down to relationship and prior experience with HSBC.
      As I mentioned in the post, I do quite a bit of international banking with them currently so I deal with the same Relationship Manager that also helps me do my banking overseas.

      For most people, this would mean that they have to pay $35 Premier fee a month, but because HSBC has a corporate agreement with my company, the fees are waived.

      If I look at it from a cost perspective, ING will also charge me $199 annually (waived for the first year - maybe second one as well), but it was actually a very close decision.

      • Regarding Relationship Manager, seriously I felt that they are so cocky because they don't give a shit about small clients. They are only care probably about wealthy Chinese with millions to deal with.

    • Seriously, the comparison rate is not 4.19%. Someone has mentioned on ozbargain about getting EXTRA cashback from using a broker on Pricepal (1300HomeLoan) and I have made a spreadsheet to see the effective rate with ING after the cashback from ING and from Pricepal broker.

      You guys can have a look to see for yourself. You can adjust the amount and the term to max out the monthly repayment at $3000 to max out ING cashback. My spreadsheet including 50% cashback from trailing commission from the broker (50% of 0.15% in the first 3 years, then 50% of 0.2% after that). ING 3.99 is only a limited offer and will finish at the end of this month.

      https://drive.google.com/open?id=1cxqYIPxX_F_TikbSLOuB587-Z7...

      I want to buy House and Land package so ING construction loan is not so good for me though. I am looking at NAB and with the same broker deal and with the 250K Velocity points bonus ;)

  • what do u mean ubank dont offer offset? Im pretty sure they do. Im using them now, unless you are talking about saving account? I just have it all deposit in to the home loan and if i need it just redraw it like a saving account. I know the minimum is $1000 but i pay everything on credit card to get points and withdraw to pay off card. works well

    •  

      You're right and wrong. There is no formal offset account but you can effectively use it that way.

    • There is a difference between a proper offset account and redraws for tax purposes. It's only an issue if you are using it as an investment property (or will in the future).

  • Any chance of a good deal for investment property / interest only loan? All these deals are owner occupied and from what heard, many of the majors charge up to .25% extra..

  • You forgot to mention the requirement for Premier… not everyone is eligible for it. The Global Transfer feature is the only thing worthy of Premier account, the rest are pretty much crap. Their Live GetRate feature used to be very good but not it is also crap for exchange money.

    Their conversion rate with Global Transfer is pretty good though. They have a very good product and now is the BEST time to utilise it and it has the potential for you to substantially reduce the home loan if you know how ;) Again, this product is limited to certain groups of customers and I don't seems to find anyone that has utilise it to its max :) That product is Market Linked Loan, you will need to understand about Forex to utilise it. It is treated as Investment loan and the max you can borrow is 60%.

    The risk: not so much if you borrow around 50% because your loan amount has been hedged.
    The potential gain: 5-10% or even 20%+ gain on reducing your loan within a few years by taking advantage of AUD gain.