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HSBC Home Value Loan - 1.97% Variable Rate (1.98% Comparison Rate, Excludes LVR above 70%) + $3288 Cashback for Refinancing

  • Unlimited free extra repayments
  • Flexibility to redraw additional payments for free
  • No ongoing monthly service fee

Receive $3,288 cashback - Available on refinance applications (minimum $250,000) submitted to HSBC from 15 February 2021 to 31 December 2021 and settle by 28 February 2022.

$600 Establishment Fee ($0 with promotional offer)
$150 Settlement Fee ($0 with promotional offer)
Valuation Fee quoted on application
$300 variation fee for changes to your loan

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closed Comments

    • Locked in a few months back 1.75% for 3 years. No cashback tho :(

      • Wow. Which bank?

        • uBank. Does it matter now tho? Doesn't look like we'd get to those rates again anytime soon

  • +2

    Still waiting for a very good IO 3 years fixed deal!!!

  • +1

    How long before you can start asking a lender for a better rate? I refinanced with St George at 2.64 and 4000 cash 13 months ago. Would they budge?

    • How is St George service? and speed of loan approval?

    • Every 6 months I successfully keep on-top of this

      • How do you get them to budge ? I got denied when I called. Do I have to go through the process of getting break costs and applying to another bank ?

        • Ask for a rate reduction either through your broker or relationship manager at the bank

          Hint there's better offers elsewhere

          Also be persistent re. The logic of variable rates should be a variable rate and reductions should update existing customers just as much as if rates were to rise, they'd be quick to ensure existing customers would increase their variable rate.

          It's a variable rate for a reason

    • I’m sitting on 2.39 with St.George from same refinance offer FYI

  • +2

    What's the point if it's variable rate. Can't they increase at any time?

    • +1

      This. They are not obliged to always offer you a low rate so it’s more like to rip off the set and forget cohorts

    • Flexibility. Cash in the cashback and churn over to another bank.

  • +3

    have been trying to do a straight forward refinance with hsbc through aussie home loans since august, may be settling on tuesday but not holding my breath, i was hesitant after reading these threads and paid the price for going ahead, deadlines clicked over, waived fees were unwaived, search hsbc on this page for similar complaints, they take forever but possibly the broker played his part too, i will never use either again, good luck to you if you apply, this is one persons opinion but there are many more if you care to look, ps my 2nd choice at time was st george with a much higher signing off rate through aussie home loans.

    • Aussie Home Loans are probably a big part of the problem, they can be very incompetent

      • It may be a hit or miss with their brokers, I ended up getting a great one

    • I have a similar experience but i'm going direct to them with no broker. The process has been dragging on for months, despite it being a simple loan and me turning around every single documentation ask same day.

    • +1

      my experience has been that it depends on which HSBC branch you're dealing with.
      except than the ones in the CBD (melbourne in my case), others seem to be very incompetent with putting in the paperwork for you.

  • Any ideas on how many offset accounts you can add? Hoping for 3.

    • +1

      1 per loan according to the chat dude

  • +1

    Is anyone in the position where they have a home loan but have a greater balance in the offset? So not paying interest. And are just regularly refinancing and taking advantage of these cashbacks?

    • -1

      That's a fair amount of effort to mop up cashback deals. Not sure how pretty your credit rating would look after all those enquiries.

      • $3000 (minus some costs) for a few hours work is worth it in my book. So let's say $2000 dollars tax free is more than I earn in a week, and the time I spend moving my mortgage at times is a lot less than a weeks worth.

        I was in the habit of moving every 12 months, but I've fixed recently.

        Credit rating hit moving every 12 months is virtually non existent. I monitored my Veda score for a while, only small movements after a refinance and I've never had an issue with credit.

        If you were churning credit cards, churning home loans regularly, then maybe you'd get a rejection, but you would be a fair way in front and just sit it out for 12 months and go again.

    • Maybe what I'd do is just split my loan up and just take out a 250k min loan for the 3k cashback.

    • That's actually not a terrible idea if the cashback was high enough. Settlement costs, mortgage registration and discharge charges would definitely eat into it though. Still, you could be up a couple of grand each time.

      • What are the costs involved in a refinance? I've done it a few times due to frustration but always figured it was costing me. Trying to exercise some self control at the moment despite paying 3+%.
        Homestar was cheapest in the 5+% back in the day, but didn't remain competitive so I switched to loans.com.au.
        They did the same thing so I went back to Homestar (I'm a slow learner).

        If Athena are reliable I'm thinking of refinancing to them. I reckon it's time to start paying off debt so a 40% deposit will do me good.

        • RAMS have a 4K cashback offer. Typical refinance fees are 1K all up (losing and gaining banks combined). So this is a very good deal.

          Even if your credit score gets trashed by these refinancing, the banks risk department will review and approve anyway (as long as you don't have any real red flags).

          The banks are eating their own lunch with these cashback deals, take full advantage of them!

          • @BlueGlass: Are you saying RAMS is a better deal or HSBC?

            Which one would you suggest refinancing to if in need of offset taking into account lowest fees, rates?

            • @OldBugger: Probably as good as each other, RAMS do have an offset account loan eligible for the cashback. Do both banks sequentially.

  • +2

    1.88% 2 year fixed rate same cashback offer!

    • I'd be going for the fixed rate too.

    • +1

      2.65% comparison rate tho

      • 2 years is a very short time for a home loan. Any interest you save in the 2 years will get burned either by the exessive varioble rate afterwards, or on cost of churning.

        I wouldn't bother with fixed rates. They are never going to offer a good long term rate.

        • +1

          2 years at 1.88%, $3288 cash back. All fees on HSBC side waived except $390/year fee. Then change banks before it switches to a high variable. What's not to like?

          • @Ploix: What does this $390/year fee gives you is this the “package fee”?

    • +1

      Had a chat with them yesterday regarding this 1.88 fixed offer. There is a catch here I'm afraid. Unfortunately they don't offer any rate lock protection between the loan approval and the settlement.
      So, if RBA increases the base rate during your settlement (which is possible in the upcoming days), HSBC have every right to increase the rate in this offer. And you may get stuck 2 years fixed loan on a horrible rate.

      I was so tempted to get this offer. But bit afraid of taking that risk now. I wish they had some rate locking service. But not.

      • Thanks for doing the research, I have been meaning to call up and check.

        I would have thought you could back out if the rate changes in that time before settlement?

  • +5

    This offer is for 70% LVR

  • -1

    No offset

    • offset is 2.07%

      • where does it say that? I don't see it in the link provided.

        NM, found it, thanks.

  • New to refinancing world - if I have 3 loan splits, can I just refinance 1 split?

    • +1

      Don't think so. Have to take the whole property mortgage over.

    • Unlikely unless you have 3 seperate deeds like 3 units in the same block.

  • +1

    Maximum 70% LVR for this rate

  • I'm applying still for the 2.19% HSBC cashback offer

  • Last drinks!

    • Before the interest rate rise and market crash?

      • Well rate rise at least… market crash yet to be seen.

        • The ozbargain mentality in me has made me keep holding off buying. Really annoyed as even if I had bought last year in the area I was looking, prices have shot up 250k on average in 12 months. Its nuts. But I can see it jumping another 200 or even 100k now. Prices are just nuts.

  • +1

    Whats the lowest everyone is getting with Macquarie? I am happy with their service but I want a lower rate if possible.

    • I called them just then and mentioned this offer. Didn't want to match but they were happy to drop my OO variable to 2.14%

  • Is the promotional rate applicable for investment loans?

    • -1

      Looking to refinance $300k investment on one year interest only on variable terms. Any offer?

  • I'm currently with hsbc with a rate of 2.7%. Any possibility of them lowering the rate if I threaten to go elsewhere?

    Sorry for the dumb question, I'm not the most financially literate person on the planet.

    • Probably not. I left to westpac after getting a no when I asked. Westpac have 3000 cashback currently.

    • Worth giving them a call and asking, it really sometimes depends on the bank and the person you talk to. Also 2.7% is quite high compared to what's available in the market!

    • Probably, you don't lose anything by asking, but there'll be a limit to how low they're willing to go.

      It's a great time to refinance. Depending on where you are, your valuation is probably as high as it's been, and the valuer might not even want to come into your house because of restrictions so you might get away without having to tidy up.

    • If you are a premier customer you should have a premier relationship manager.

      If not give them a call and ask what is the best rate they can give you? You are considering moving banks.
      Normally they let you know they will call you back later.

      Note if the rate is whatever they will never give you the best rate. They might give you a rate close to the best rate.

      Remember sticking with the same bank is easy. Just pay a fee if applicable and rate change. Moving bank takes time and effort.

    • +1

      Absolutely. Everytime HSBC put up one of these deals I email my relationship manager and they've been able to match the interest rate, even though I'm already getting discounts on the yearly Premier fee.

      If they say no, just reply "I've found some better home loan packages being offered by other banks and I'm considering refinancing. Before I go down that road, are you sure this is the very best you can do?" and watch them change their tune.

    • +4

      HSBC agreed to put us on 1.97% - thanks everyone for the advice.

      • Wow! That's a big chunk off

  • IS it a honeymoon rate? This table scares me, the reference rate is 3.9%? does it revert to that after a period?

    Principal and Interest
    Interest Rate
    Comparison Rate
    Home Value Reference Rate
    3.90% p.a.*
    3.96% p.a.
    Home Value Featured Rate
    1.97% p.a.*
    1.98% p.a.

  • I am with HSBC now. Refinanced 2 months ago. The whole process was pretty painless. No brokers involved. Never found them useful.

    • did you go split or 100% variable?

    • Same here, was very smooth switchover.

      • How did you apply? Did you call them up or requested a call back from them?

        • Initially requested a call but called them up next day.

  • Recently locked in 2 years at 1.97%, Very happy with that! (ANZ)

    • Did you get $3k bank cashback in doing so?

      • +1

        Sorry should have mentioned - It was a call to ANZ to get a better fixed rate than i currently was on (2.48) saved me leaving them to go with HSBC

        • Was your fixed rate of 2.48 about to end? Didn't think a bank would do anything if you are on a fixed rate unless it was ending soon.

    • Fixed can't do extra repayments but.

  • -1

    lenders get funds from the commercial market , not from the RBA only . So with inflation rate in the US is above 6% the interest rate increase is coming .

  • Variable rate means the bank can increase the rate anytime. But you will need call and ask for the rate to be reduced if the rate drops, and they can reject as well? That’s not fair

  • -2

    Be aware of their terms and conditions.

    o prepay more than $10,000
    during any 12 month period starting on the date the interest rate was first fixed; or
    in any following consecutive
    12 month period

    You need to pay back the different of how much interest rate you save when you break with them.

    • +1

      Every bank has a break fee cost and/or penalty if you pay more than a certain amount for a fixed fee loan.

  • does HSBC discharge twice if i have a spilt home loan?

  • Newbie here. Cashback from banks on refinancing is supposedly to cover costs of leaving previous loan provider? I understand cashback from broker is to recover some of their commission, but why are banks doing it?

  • -1

    Better off fixing at this point. Interest rates going to rise mid next year.

  • I've got Westpac down to 2.94%. Has anyone else managed to get better out of them or other big 4 banks on a variable rate? It seems as though competitors in the Big 4 are able to beat this rate quite readily for some people here. I would like to switch to a smaller, online or overseas based bank but just not overly keen to jump through all the hoops all over again by submitting paperwork and having valuers on my property etc.

  • -1

    be careful with HSBC
    I was with them for about 3 years- they kept putting up the rates. i asked them to match the specials they kept giving to new customers. they said no but if you borrow an extra 50k we can. dodgy

    • I’ve never had this experience with them. They’ve actually dropped my rate every time.

      • nice. maybe they were losing to many customers. i went to athena on 1.99

      • My rates with HSBC dropped since we signed up with them in 2019.

        • is your rate better than this special?

          • @joerd: Nope but we have zero balance though.

  • Looks good, but the reviews on the mobile app are terrible.

    • If they're giving decent deals like this I'm going to be less fussed about the quality of the app. Banking apps do get updated often enough.

    • I'm with UBank and their app just redirects you to an external website to manage home loan LOL, because it's managed by Advantedge

  • Owe less than $250k now but if I decided to refinance and make it $250k will still be eligible for the cashback?

    • should be

  • so my loan just got approved and switched over from nov 5th but only getting 2.29 pa . any chance they bump me to this new rate

    • -2

      they own you already.

    • I'm almost in the same boat, finalising some details before they issue the contract. I'll be asking them to refinance based on the new rates.

      I'm with St George atm and they matched the 2.29 for me (was 2.77). I had to get evidence that I was switching, so I forwarded them the email and the matched it.

      • Hey mind sharing how you got St George to lower their rate ? I'm currently half way through a fixed 1.99 + a variable 2.54.

        I tried on the phone the other week but had no luck with the person I encountered. What's your strategy ?

        • Sure bud. I basically got something in writing from HSBC and I Called the St George retention team (1300 302 302) to match the rates. They came back after a couple of days with the approval and was applied immediately. Hope this helps.

  • -1

    Recently, I've talked to HSBC home loan staff. She reminded me that HSBC Australia may send my details to HSBC Hong Kong. I have a bit concern this as Hong Kong is totally controlled by dictatorship Chinese government now. Any opinion on this issue?

    • What specifically are you concerned about? If it is privacy you could still do your everyday banking elsewhere. I recently avoided a Chinese branded router due to privacy concerns although I’m not sure how much better other brands are in this regard.

    • -1

      You can ask for a HSBC tin foil hat next time you're at a branch

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