I just signed up for this. I reckon it is a pretty good rate for a bank with Branches.
3.57% CR
Please note that this doesn't come with offset account (redraw only)
HSBC Home Value Loan (Variable, Owner Occupier Only) 3.55%
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depends if you can be bothered transferring in and redrawing out multiple times per day.
Potential for a lot more tax benefits too
depends on circumstances. I have this product at a slightly higher rate of 3.58%.
my mortgage is over $1,000,000 (at 3.58%), my everyday account typically has $10k in it (earning say 1.00%).
I agree offset is better but it is only worth about 0.04% in this instance.I've got the 3.62% rate and I have pretty much the same setup. I keep only a couple thousand dollars in my savings account. If I ever need more money, I can always withdraw money from the home loan.Therefore I'm not losing out of much vs using an offset account.
According to the fee schedule there's a $20 fee to redraw in person, but you can perform free redraws online: https://www.hsbc.com.au/1/PA_ES_Content_Mgmt/content/austral…
As long as you can get instant redraw to an ATM account then the lack of offset account isn't that big of a deal. It's what I have with ING at the moment. I just use their phone app to perform a redraw just before using the ATM.
Probably depends on your setup/circumstances. Also as this happens to be one of the cheapest rates out there, you're not going to get an offset account with it.
Anything for investors?
I checked with HSBC Adelaide bank. IO payment is only for families who earn more than 300K. I don't think most of the people will only be able to get P&I repayment option.
Just talked to one of their premier relationship manager.
Fees & charges to consider if you're refinancing:
Loan variation fees $300
Land Valuation $225-240
Government charges - $150
Loan settlement fees - $150More info about hsbc fees & charges here:
http://www.hsbc.com.au/1/PA_ES_Content_Mgmt/content/australi…Overall, if you're refinancing $1000-$1200 one time expense (including $350 current bank discharge fees).
The relationship manager told me this is normal with refinancing with any bank out there.
I reckon an offset account would save you a lot more money in the long run.
Always find a mortgage with offset account.