Quick Summary
Founded
1866 overseas, 1965 in Australia
Owned by:
HSBC Group, listed on the London Stock Exchange
Funded by:
Retail deposits and wholesale capital markets
LMI Provider:
Genworth
Lender type:
Banks, International Bank
HSBC is the 5th largest bank in the world and has been a popular choice in Australia for people of Chinese descent and international borrowers.
They built up a large following using their partnership with mortgage brokers only to withdraw from the broker market and sell their customer’s loans to Firstmac in a surprise move in 2006.
They’ve predominantly targeted the Chinese community in Australia for home loans and overseas for investment loans, as they recognise the HSBC brand from Hong Kong where it has a much larger presence.
How do HSBC’s home loans compare?
Pros
- Overseas investors
- Multi-language banking for Chinese borrowers
- Offering lower interest rates if you have a large deposit
- Offering good interest rates to their Premier customers who live overseas
- No credit scoring
- DUA with QBE (mortgage insurer) allowing them to write more loans
- Good online banking system
Cons
- They don’t suit most first home buyers with a low deposit
- Focus is primarily on the Chinese community
- They target the migrant community but you can usually get a better deal at another lender
- People with a bad credit history
- No branch access
- They only work with some mortgage brokers
- Their commercial loans have a 10 year term
- They're not a major bank in Australia
- They’re not great at construction loans
- Self-employed borrowers who cannot prove their income
- Restrictive LVR lending for inner city/high-density units and serviced apartments
- No common debt reducer accepted for joint debts or living expenses
- Overseas income is shaded heftily
A Word of Caution
When banking with HSBC Australia, customers should be aware of some serious concerns regarding their handling of scams and customer service. Between January 2020 and August 2024, HSBC Australia received approximately 950 reports of unauthorised transactions, resulting in customer losses totalling around $23 million. Reports of scams surged in mid-2023, with scammers impersonating HSBC staff to gain access to customer accounts. On average, HSBC took 145 days to investigate these reports and 95 days to restore customer access to their accounts.
The Australian Securities and Investments Commission (ASIC) has taken legal action against HSBC Bank Australia, citing failures to adequately protect customers from scams.
As a large international bank, HSBC’s complex IT systems reportedly hinder its ability to innovate and offer seamless, cutting-edge banking services. Customers have also reported delays in loan approvals, which can lead to missed auction opportunities or added stress during property purchases.
If you are considering HSBC for your banking or home loan needs, it’s important to weigh these factors and proceed with caution.
But there’s a catch…
They don’t deal with many mortgage brokers, which means there isn’t someone on your side to keep the bank honest!
Will your HSBC lender call you up to let you know that your rate is no longer competitive? Of course not!
It’s almost certain that older HSBC home loans will be on a much higher interest rate than the home loans being offered to entice new customers.
If you choose to go with HSBC, then you need to check your interest rate every year to make sure that they haven’t played any games. We regularly check the rates of our customer’s loans and either renegotiate or refinance if their lender can’t give them what they are giving to new customers.
What are HSBC really good at?
HSBC was a market leader with their Market Linked Loan. This was a foreign currency loan that was used by foreign investors or Australians who have an income in another currency.
Australian lenders including HSBC are no longer offering foreign currency loans. However, you can still borrow in Australian Dollars (AUD) to buy Australian property if you are an Australian expat or foreign citizen with other lenders.
What home loan types do HSBC offer?
HSBC’s home loan offerings include their Home Value Loan, Variable and Fixed Rate Loans, and Premier Loans.
Most of their home loans ranges have owner occupied, investor, interest only, fixed, and 100% offset options to suit your needs.
As a point of difference, their Premier customers enjoy an HSBC Premier Mastercard with HSBC rewards and no annual credit card fee, along with the option of a dedicated relationship manager.
Compare HSBC to other lenders
Not sure which lender is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.
Find out if you are qualified to apply with this lender
GET A FREE ASSESSMENTQuick tip when applying with this lender
- Use HSBC's Documentation Requirements checklist to prepare for your mortgage application.
- Note: Please refer to HSBC for their most up-to-date document requirements.