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HSBC - 2 Yr Fixed Rate Home Loan - 2.09% P.a Interest Rate, 2.98% P.a Comparison Rate

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HSBC : 2 Year Fixed Rate Home Loan

Promotional Offer
Based on an Owner Occupied Interest Rate (Principal and Interest).
2.09% p.a.*
Interest Rate
2.98% p.a.
Comparison Rate

^Comparison rate warning applies

The ability to make $10,000 extra repayments per year+
No ongoing monthly service fees or annual fees
The option to split with one of our variable home loans
xcludes LVR above 80%. Available on borrowings from $50,000, interest rate available as at 01 June 2020, apply by 31 July 2020, settle by 30 September 2020 and is subject to change. Reverts to HSBC's Standard Variable Rate. Maximum loan amount $7,500,000.

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closed Comments

  • What do the two different interest rates mean? Which one do you actually get charged? The nearly 50% difference obviously makes a lot of difference.

    • +4

      Basically the interest rate is what they class as interest and the comparison rate factors in all the extra charges and fees you have to pay besides the interest rate, for example monthly account fees, set up fees, etc

      • +4

        Comparison rates on fixed rate loans are very misleading. Just look at the rate and the fees for the period you are looking to fix.

      • All comparison rates cover a $150,000 loan over 25 years. So after your two year fixed period the loan will revert to the standard variable rate for the remaining 23 years, hence the comparison rate averages the fixed portion and variable portion. If you're savvy after your two years are up you will refinance somewhere else for a better rate then the SVR. So effectively comparison rates are meaningless when you plan to move/switch after the fixed period.

  • Damn, I just locked in 2 Years at 2.25% fixed with them couple months ago

    • +8

      Because the big 4 banks in Australia are 100% legally and ethically sound….

      • +5

        ….The disclosure by HSBC's Australian arm makes it the latest bank embroiled in money laundering scandals after Westpac was implicated in 23 million breaches last year and the Commonwealth Bank paid $700 million to settle 53,700 failures revealed by the ABC 2017…..

    • Shame on them for being caught! The Dirty Money Netflix episode on that was really interesting though.

  • +1

    Looks like to sign up, you have to put in all your details and one of their Relationship Manager will contact you about it

  • +4

    How Simple Becomes Complicated - from ex-staff ;)

    • -1

      ??

      • "HSBC"

  • Anyone with a crystal ball know whether it's a good idea to lock in a fixed interest rate now or should we wait a bit longer to see if they will go down anymore?

    • +5

      I'm not convinced that the banks would pass on much of any further cuts.

    • The notion that you 'should never lock in interest rates' was more relevant when they were around 5-7%. THere was scope to go lower, but geez, pretty low and I daresay banks won't be keen to cut much lower if at all.

      If you're comfortable with what your set repayments will be for two, three years at around these rates, it's a good time to do it.

      • So we don't think that variable rates will also drop to as low as fixed?

        I'm currently with tictoc on variable and thinking of refinancing with them to a fixed rate, not sure if they'll offer the best rate though as I am an existing customer.

        • with tictoc also - 2.69 i think. They have not passed on the the new rates but been happier enough with them
          Have you spoke to them or plan to? I was wondering what they would offer for existing customers.

          • @kingyone: tic toc new customer 2.39 variable

            • @dcep: sorry, to be clear - i'm with tictoc and my rate is 2.69

          • +1

            @kingyone: Was planning to speak to them, currently on 2.84% so you're doing better than me. 2.22% fixed for 3 years sounds pretty good.

    • +3

      Captain hindsight here

      Best time to lock was with ANZ fixed for 2.19% with $4k cashback back around early April.

      • +1

        I did so, however the whole process took so long (through Uno) that the rate moved to 2.29% costing me roughly 1.5k over the next 2 years.

    • +2

      I ended up fixing mine @ 2.24% - 2yrs with Suncorp after some wrangling on the phone.
      Although I always want the best deal, getting 2.09% meant a paltry $5/wk reduction in weekly payments which wasn't quite worth all the hassle of paperwork and transfer fees etc.

      Keep in mind I was sitting at 2.84% prior to fixing it so I took the plunge to fix, saving me immediately $40/wk. I was keeping it on variable the last 5 months waiting for further drops and saw the banks passing less of it through and the RBA publicly announcing they will not go into negative rates (taken with copious grains of salt). But I resisted for about 3 months and ended up paying the higher interest for those periods.
      I thought of it that cash rate will only drop the last 0.25% to 0% and best case scenario the banks pass it fully to me I would be sitting on 2.59% variable - which is still higher than any available fixed rates atm.

      Remember, if you do your maths the marginal savings decreases when working with lower interest rates i.e. a reduction from 5% to 4% is not the same as 2% to 1% despite the absolute 1% decline. Sure if fixed rates went down to 1.50%, I'd be saving close to another $20/wk but I'd maybe wait who knows how long for that to happen while paying a higher variable interest rate.

      • Was that rate with the $2000/3000/4000 cashback deal?

        • I didn't get the cash back as it wasn't a refinance, just variation on my interest rate. I think the cash back deals are for new clients and I am an existing client anyway.
          Since my property had lost equity $100k, it wouldn't serve me well to stump up $100k just to get $2000 cashback and also get that extra 0.15% interest reduction over 2 years.

  • +2

    the rate is good. however, bear in mind with these fixed rate loans you don't get offset account or redraw.
    I use offset and redraw facilities too much to switch to fixed.

    • +1

      TMBank offers one to three year fixed with a full offset for 2.19%.
      Would be a better option if you qualify and have more than 5% of the loan value in your offset.

      • thanks mate, could you share the link? I couldn't find that on their website.

      • Tic toc do also

      • ^Please note: The above is an example only. Interest rates may change at any time and we may change the Offset Percentage at any time upon notice to you.

        So when you lock in a fixed rate, they can still give notice to change offset %.
        If you then want to move away, because you can't offset the entire amount in your savings anymore, then they can charge a break fee.

        • Don't know, but I've been offsetting over a quarter of my for over 6 years now.

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