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HSBC Home Value Loan - 2.19% Variable (2.20% Comparison) $3288 Cashback

2190

Available on refinance applications submitted to HSBC from 15 February 2021 to 30 September 2021 and settle by 30 November 2021.

Fees
$600 Establishment Fee ($0 with promotional offer)
$150 Settlement Fee ($0 with promotional offer)
Valuation Fee quoted on application (I didn't pay anything)

The app isn't great but works. No Payid but accepts fast payments.

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closed Comments

  • Guess this is owner occupier ppr home loan only?

    No investment loan ones?

    • This is my fixed investment rate with St george.

      I split variable and fixed and completely offset my offset. Can pay 30k a year extra on my fixed.

      • +1

        hmmm guess st george doesn't want to refinance a westpac loan lol considering they're the same company

  • New apps?

  • Just wondering, do you get penalised for hopping around too much. I was going to wait to the 2 year mark for my agent to get her commission (family friend). But considering that I want to buy again down the line, don't want to jeopardise that either.

    • Is it always 2 years for your broker to get their commission? I’ve never heard of this.

      • Yes mostly 2 years

        • 0-12 months it’s 100% claw back on up front commissions. 12-24 for most lenders is 50% clawed back. If you’re over 12 months I don’t see why the same broker would have any issues refinancing you to another lender as they’d be keeping your business and keeping you happy.

          • @RDY4WR: My broker got me onto ANZ 1 year fixed and said I should stay on for 18 months otherwise ANZ will clawback.

            I'm going to send my broker this deal and see if they can do something similar when the fix ends.

  • Minimum $250k refinance disqualifies me or would of pulled trigger, anything similar around? My annual fee due in October so good time for me to look around

  • +1

    Guys what is the easiest way to check for own credit score and how to improve it in a short time?

  • +1

    shame my fixed rate (@ 3.99%) exit fees is $7k :( even with the cashback and other savings, I would be better off paying the higher interest rate until Jan next year

  • +6

    I will not give this bank a cent even if they give me a loan for free. Deeply in bed with the now corrupted Hong Kong government and help them freeze millions of hard earn money from Hong Kong protester.

    https://www.taiwannews.com.tw/en/news/4137950

    Oh before any of you trying to reply and saying they are just playing by the law, HSBC don't seem to have a problem pushing 4 Billion of dirty money through their system.

    https://www.thebureauinvestigates.com/stories/2021-07-28/mon...

    I don't just talk the talk but also walk the walk. They offer me and my wife fix 1.88 when we did our deposit transfer. Say no to the guy's face and went to CBA with a higher rate but feel better that I did not support a bank that has blood on their hands.

    Another reason I cut my relation with them is their security measure, endless password and user name requirement just too hard to deal with.

    • +1

      do you know this us a British bank not a Chinese bank?

      • +2

        It is a British bank but when they were question in UK about freezing protesters money. They claim they have to comply to local authority AKA the corrupted Hong Kong government and police.

        Words in the industries is that HSBC is unwilling to let go of the big fat RMB market in China and Hong Kong. At the same time it means that it will be hard for HSBC to comply to UK regulation if it continue to operate in HK. So its likely that HSBC will have to detach the Hong Kong business into a separate entity.

        I just hope the rumor that USA will kick China out of SWIFT comes true, then we will see who is laughing….. this is for those who down voted. Obviously you guys lack the basic understanding of right and wrong!!

        • -5

          do you know how how the us government treat the MAGA protesters right after the election? Hong Kong government is too soft. Obviously you lack the basic understanding of right and wrong!!

          based on what you mentioned HSBC is a good company which obey the local law.

    • -6

      Millions of "hard earned" money from HK protester?

      During university did you suddenly have millions of USD deposited into your bank account to loot and burn down your city?

      NED and US govt funded the protests til it got out of hand, and HK govt confiscated the money before it could be absconded away.

      You should do yourself a favor and learn English before you jump to naive conclusions which have no fundamental merit.

    • +1

      two wongs don't make a right though

    • Well that's more motivation and incentive for me to cream $3K from them, considering they won't make much from me as I have my loan completely offset.

  • What's the go with refinancing? Is it essentially a whole new loan application? Meaning they might not approve?

    • Each lender will check if you met their lending policy and also if you have the capacity to pay back the loan. Your situation could have changed since you first took your loan with your current provider. Plus don't forget you are tested on their assessment rate and not the rate they are going to give you.

      • +1

        So it's essentially almost a new application. Thanks.

  • +2

    HSBC would have to be the most painful bank to deal with.

    It took me over three months to get approval. It took so long that I had to submit my payslips three times!

    I thought refinancing would be easier, wrong! It was just as bad!

    I am a Premier Qantas Visa holder, their customer service is appalling and their insurance isn't wroth the paper its printed on.

    If all goes according to plan this will be the last month I will be with HSBC.

    • I got a loan with HSBC since early 2019
      Agree with the initial setup was taking so long (at least 2 months from memory)
      But once its done, basically its just a bank like the others

      Despite HSBC is a global bank based in UK/HK
      their footprint in Australia is pretty small
      and there are many manual paperwork and process (eg. went to a branch and the staff there has no clue to even apply for an additional credit card)

      I would say apart from the lower interest rate than the Big 4
      the only advantages for HSBC are:
      * If you have their Global Everyday account, the 2% cashback is pretty good, better than most rewards points program
      * If you are eligible to become their Premier status (9k deposit per month), then this status can be recognised across the globe, giving free international money transfer instantly

      I have an account in HSBC HK as well and have been using the money transfer all the time

    • I had a UK account, and when I moved back to Australia, they basically said all they can do is Mastercard Forex money to my UK account.
      They promote themselves as "global bank".

  • -1

    Athena 1.99% and no fees at all and the refinance was smooth and easy and took me 3 weeks since initial enquiry. Highly recommend.

    • Do they offer offset yet?

  • +2

    it's one of the worst banking app to deal with!!
    it doesn't have many basic features.
    it's like using iOS version that's more than a decade old.

    • Is this regarding the app titled HSBC Mobile Banking? Then it is indeed terrible. However, not long ago they released a mobile banking app titled HSBC Australia, which is much cleaner.

  • +2

    HSBC were the worst bank I ever had. The customer service was repeatedly dreadful and riddled with mistakes that took months of my time to fix!

    No matter what special was running I wouldn't go near them ever again.

  • +2

    Is there an offset account with this loan?

    What might be the catch with this offer for someone like me who has a home loan with another bank that has no monthly/annual fees and the loan isn't attracting any interest (enough funds sitting in the offset). There is a $300 fee if I discharge the loan.

    If I refinance, are the costs only the $300 discharge, the HSBC valuation fee and perhaps a week or two of paying interest on the new loan as I would eventually move all my funds to an offset (if available) and not have a negative balance.

    Would you be able to pay off the variable loan and discharge it at any time without any break costs?

  • Can I get my mortgage broker to apply this for me

    • Any benefits going to the broker rather than approach the bank directly?

      • +1

        No benefit..Just trying to avoid the leg work

        • I only walked into the branch perhaps 3 times between initial meeting and signing up, not sure how much more leg work I can save by going to a broker. Understandable if you don't have a branch near you.

          Also, from what I heard, broker seldom touch HSBC as there are no money in it.

    • +2

      Given this is a pretty good deal, it is unlikely available for brokers considering HSBC would have the pay broker commission on top of the rebates. I would apply directly. The application process may seem long andd daunting at first but they're not going to ask you curve ball questions. BTW I used to work in home loans for a big bank.

    • I thought HSBC doesn't deal with mortgage brokers that's why they are directly passing this on to you/ customer.

      • Thats why many have not realised it till now. It started on the 15 Feb.

        Given that many people are on disaster payment, it may not be easy to apply it till lockdown finishes.

  • if i have a 380 grand loan with more than that in my offset, do you think they'd approve?

    • +3

      Strange flex, but why would you have more than the loan value in an offset account?

      • Guessing it's for easy money/credit. Ie: Can pay off the loan and/or use the amount in offset to buy something else.

        • +3

          But keeping the extra money in an offset is pointless, you'd be better off keeping it in a savings account account if you needed to use it, at least you'd be getting some interest.

          • -1

            @onetwothreefour: LOL - Interest.. You seen the interest rate on savings?
            It's not really pointless -> Just means they have instant access to a large amount of money without having to go for another loan…

            • @Maz78: But the interest rate on money in the offset acct when it is more than the loan value is zero. My point was anywhere else would be better than holding say 500k in an offset when the loan amount is 380k. Take the 120k out and use it somewhere else.

  • Would probably fix right now instead as you can get <2% and they're definitely not going lower.

    • Some lenders already increasing fixed rate. A pointer to what banks are expecting.

    • +2

      Many economists are saying negative interest rate could be in the cards if lockdowns continue.

  • Thinking of a hypothetical scenario in which a person has a mortgage (let's say of $600k) and offset account with another bank, and enough money in the offset to pay off the mortgage, are were in fact planning to pay off the mortgage in the next few months anyway.

    Is there anything to stop them refinancing with HSBC, collecting the $3288, and then paying off the mortgage immediately?

    Obviously need to consider the discharge fee from the other bank and also whatever valuation fee HSBC applies, but I wouldn't imagine that'd come anywhere near $3288.

    • +1

      Effort… barely worth the time for $3k

      • +8

        This is OzB mate, we go through hoops to get free chicken nuggets.

      • +3

        Probably $2k after fees?
        But this is ozb, people upvote $2 cashreward deals let alone 2k…

      • Definitely worth the effort, as it works out to be about $500 per hour of your time. If you do it 6 times over you’ve got yourself a tax free $20k.

    • +2

      it is not a good idea that you pay off the loan sooner. home loan is the lowest interest loan you even get. you can keep a small amount and redraw when you need money

      • This is a good point but we can imagine scenarios in which it would not apply, e.g. if a person had already been maintaining the loan for many years for the reason you specified, but then achieves a sufficient level of wealth to not need the loan anymore. At some point the annual fee on the loan would outweigh the benefit of having it.

        • no offset account home loan normally doesn't have annual fee. even the mpst wealthy people still get loan for business. more option is always good. and you can also refinance earn the bonus cashback when you want to.

    • In your scenario I do have 2 questions though, if you refinance with HSBC without the offset account, assuming you have 550k in your current offset account, do you re-borrow 600k loan, transfer 550k to repay your loan immediately, and redraw it when you need the money?

  • +1

    I would rather last year's interest rates, and real estate prices.

    Houses in the areas I'm looking are selling 200k more than last year, it's freakin ridiculous.

    • true

    • +2

      government printed more money so everything is more expersive than last year

      • Cars up, houses up, salary flat.

  • -1

    Be aware of high annual fees and establishment charges rapidly eating into the cashback. If you're considering this I'd anticipate a refinance 1-2 years down the road to another product to make the numbers work. I considered both HSBC fixed and variable loans but at the end of the day priced going to a more competitive, simpler fixed rate solution as better for me. YMMV, depending on what you need and how proactive you are in refinancing.

    • +6

      Yes, the $0 annual fee and $0 establishment fees will surely eat into the cashback

      • Ah you're right, I was looking at the fixed package, which has a significant annual fee.

        When I looked at the HSBC packaged they weren't rebating the start-up costs. Editing to reflect.

        Something else to check is the term, many require 30 yr refinance (though this may not be an issue if you roll to variable then pay down quicker if you like)

        • I’d avoid the package product unless you needed the offset for tax purposes. Interesting about the 30 year term, I requested 27 years from HSBC yet they wrote the loan for 30

  • i'm a total noob when it comes to refinancing. noticing that there's a lot of offers on the market for "cashback sign up bonus", is there any reason one wouldn't just go and keep flipping the refinance offers from all the different banks to get the sign up bonus?

    • Yes, if you flip too much your credit rating takes a massive hit. It takes a hit with any credit check, but I have found a mortgage is worse than a credit card.

      Keep in mind, depending on the bank and your state, fees can be upwards of $800.

      So most people get $2k benefit. It's a shit tonne of paper work to flip all the time, you need to get it JP'ed etc.

      • i see. thanks for that.

  • Invalid email address

    Damn. If this company won't even accept a valid email address, I think that's a pretty good indication they're mind-numbingly incompetent and ought to be avoided if you value your sanity.

  • Do you just fill in the form online using Enquire now (just sent enquiry and says someone will contact me in 2 days) or can just apply online yourself (can't find anywhere to apply online??), I am an existing customer with HSBC CC.

    • +1

      no one contact me in two days

      • +1

        I ended up calling them yesterday on 1300 number and spoke to a relationship manager and send them documents requested. They mentioned it will take them 5 days to go through and then couple of weeks with Credit team etc. But looking at most of the other commends we need to be on top of everything to ensure we don't have taken for a ride etc.

  • Started my investment loan application mid-March 2021, got conditional approval last week, expecting formal approval this week. It's been a painful process. Loan will be under a family trust structure which complicates matters but still ridiculously long time to get to this stage.

    Quoted in mid-June the following investment rates: 2.39% fixed 2 yrs, 2.49% fixed 3 yrs with package fee $390 pa for non-premier customer or $195 pa for premier customer.

    To qualify for Premier you need to hold 150K in saving with HSBC or deposit 9K per month into HSBC account and hold a HSBC Everyday Global Account which has no monthly fee service fee.

    Everyday Global account has an interesting feature, deposit 2K every month to earn 2% cashback on eligible purchase under $100 when you tap and pay using Visa payWave, Apple Pay or Google Pay. Max cashback is $50 per mth, eligible purchase must be in AUD, merchant registered in AU, purchase excluded include public transport, govt and gambling transactions.

  • I refinanced and it a painful process to say the least.

    Had to fight tooth and nail for HSBC to refund me some excess money they took as part of the refinance, including me lodging a formal complaint. They call it a 'buffer' to cover any additional fees charged by your existing bank. If the process works, it gets refunded automatically. If it doesn't, it's a world of hurt. Let's just say my HSBC contact was fairly useless and I had to waste hours doing the legwork.

    Another thing to note with HSBC is you get assigned a 'relationship manager' and every loan related request or enquiry needs to go through them. If you talk to their useless contact center, they'll get you to call your relationship manager. I think it's their way of trying to make it seem like you get ultra personalised service. But it's a catch 22. If your relationship manager is unresponsive or crap, then your experience with HSBC is going to be painful.

    • +1

      Thanks for the heads up about this "buffer". Had no issues with my relationship manager at my local branch near work, her email response was prompt. The disconnect was between her and the credit department that assesses the application, any docs missed or additional info required meant going back to end of the queue which I thing is common with most banks.

  • Anyone like to recommend a good relationship manager. I've had an email and phone enquiry so far with HSBC and both have resulted in dead ends.

    • Would also love a recommendation as I've had the same experience. My loan is towards the lower end of the eligibility criteria so I wonder if that is having an effect.

  • Just wondering how this is going along for people that have started the process? Some of the comments don't fill me with confidence 😆

    • +1

      Started refinance application mid March 2021. Got formal approval 2 weeks ago and told loan docs are in the mail. Never received the loan docs last week and on Thursday received an email saying they don't have the docs I signed in the branch in July plus they have additional docs to be signed. It is a real test of one's patience.

      • Jesus. Sounds like it's not even worth the hassle for the cashback and rate.

        • +1

          Too close to the finish line to walk away now. Next time I will apply with 3-4 lenders at the same time.

  • About to make the switch, thanks OP

  • For anyone still considering/reading this, been told by my broker today that this deal has been extended until the end of the year. I believe apply by 31st of Dec and settle by 28th of Feb

    • I didn't know there were brokers for HSBC. Can you PM me their contact?

      • They've recently been added to Aussie's network, your local Aussie broker should have access.

  • hi all,
    i am going through the arduous process of refinancing. When I received the document for esign up, it states that

    Please print the below document and fully complete and sign it. To speed up processing of your loan, ensure you upload the signed copy in the upload section below. Please note FMS Contact details on the document being First Mortgage Services Ph 1300 360 757 Fax 1300 138 532. If you have already completed and submitted a discharge authority to your bank, please upload a copy of that document below

    Is this legit and why isnt HSBC not used?
    Thank you for your advice.

    • +1

      That's normal, FMS is widely used by lot of lenders, when I refinanced via St George they use FMS too.

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