HSBC, or the Hong Kong and Shanghai Bank, is one of the worlds’ largest banks
HSBC Home Loans
March 25th, 2010
HSBC, or the Hong Kong and Shanghai Bank, is one of the worlds’ largest banks. However, its presence in Australia is relatively small and it tends to be aimed at high net worth individuals and people and businesses with international connections.
HSBC have recently made a move to get into the Australian market and offer a wide range of loans. This includes first time buyer home loans, moving and refinancing mortgages and home loans for investing in property. They also offer the ability to combine different types of loans in order to tailor a loan to the home buyer.
The Variable Rate Loan is a home loan that is set at the standard variable rate. It is the default home loan for HSBC, and any fixed term offers will run on to the Variable Rate Loan when the term runs out.
The Home Rewards Loan is a loan that reduces the interest rate over time. It functions like an inbuilt loyalty scheme.
The Home Value Loan is the lowest interest rate loan. It is a no thrills mortgage that is set at a discount to the standard variable rate for a set term. It is suited to first time buyers or those borrowers who want to quickly pay down a chunk of their mortgage.
There is a Fixed Rate Home Loan which is set at a fixed interest rate. These are offered at a slightly higher interest rate than the variable rate loans as HSBC is assuming any risks of the interest rate changing, while under a variable rate loan it is the borrower who takes on this risk.
The Home Equity Loan is aimed at releasing the equity that is already built up in a home. It is aimed at homeowners who already have some equity built up in their home but who need to release some liquid cash. The sort of homeowner it is aimed at are retirees who wish to supplement their pension or small business borrowers who wish to put money into their owner managed business.
There are a number of specialist home loans. The Home Smart Loan is a line of credit that advances a borrowing facility secured against the house rather than advancing a fixed loan. The Market Linked Loan is a loan that is linked to the market rate of interest rather than the standard rate loan. The PowerVantage loan is a current account mortgage, together with a debit card. There is an HSBC Premier home loan that is a higher cost, higher service home loan. Finally, there is a Lo Doc Loan that is aimed at self-employed people who cannot prove their income.
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