Join Australia's most dynamic and respected property investment community

HSBC 3.55% variable seems impressive?

Discussion in 'General Property Chat' started by Samj, 6th Oct, 2016.

  1. Samj

    Samj Well-Known Member

    Joined:
    14th Mar, 2016
    Posts:
    71
    Location:
    QLD
    Found that HSBC is running a promotion for OO mortgages and the variable rate is 3.55% at the moment.

    It doesn't have an offset account, but free to pay more and withdraw.

    Home Value Loan Savings Calculator | HSBC Australia

    I am just wondering if you have had any good experience with HSBC?
     
    MTR likes this.
  2. mikey7

    mikey7 Well-Known Member

    Joined:
    30th Mar, 2016
    Posts:
    195
    Location:
    Sydney
    Not bad.. Im with Westpac at 3.61% for PPOR (no offset, free to pay more, $25 per redraw).

    I've never been with HSBC, but my workmate was with them. He was always complaining about never being able to find a branch or ATM nearby, and them charging a heap of fees (even charging fees to withdraw at a branch when he did find one!)

    Just had a look, and there are 32 branches in Australia :/
     
    Mr Dabolina likes this.
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,756
    Location:
    Perth WA
    If you want an offset Bank of Sydney has 3.54 for OO under 80% LVR.

    If your PPOR will ever become an IP, redraw isn't a great idea, the offset will work better for future tax purposes.
     
    Whitecat and Birdseed like this.
  4. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,289
    Location:
    Perth, Melbourne, USA
    Wow, these are impressive interest rates. Wonder if I can screw down my lenders further, will give it a go.
     
    Whitecat and Birdseed like this.
  5. AMB

    AMB Member

    Joined:
    27th Aug, 2015
    Posts:
    14
    Location:
    Perth
    The Bank of Sydney rate is impressive but I understand it's only for customers in Sydney, Melbourne and Adelaide. No good for people like me in Perth. :(
     
    Whitecat likes this.
  6. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,756
    Location:
    Perth WA
    @AMB That's not my understanding - I know it's not for NT or Hobart, but pretty sure Perth is fine.
     
    Last edited: 6th Oct, 2016
  7. AMB

    AMB Member

    Joined:
    27th Aug, 2015
    Posts:
    14
    Location:
    Perth
    Thanks Jess. It's an appealing offer so I'll check it out further.
     
  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,756
    Location:
    Perth WA
    They're brand new on my panel - looks like they're very conservative and tight servicing, but good for the right client, especially a set and forget OO loan.
     
  9. Samj

    Samj Well-Known Member

    Joined:
    14th Mar, 2016
    Posts:
    71
    Location:
    QLD
    How about Brisbane?
    How would you compare HSBC and Bank Of Sydney in terms of customer service and other services?
     
  10. ashish1137

    ashish1137 Well-Known Member

    Joined:
    12th Sep, 2015
    Posts:
    308
    Location:
    Sydney
    So which is the best product these days for investors and by which lendor?

    Regards
     
  11. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,091
    Location:
    Melbourne, Nationwide
    That depends on the specific circumstances and needs of the investor. There is no best product or best lender.
     
  12. Wendy

    Wendy New Member

    Joined:
    21st Sep, 2016
    Posts:
    3
    Location:
    Northcote
    I have a regular transaction account and have had no trouble at all with HSBC. I can use any Westpac ATM at no charge.
     
  13. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,756
    Location:
    Perth WA
    Bris is fine. To be honest I can't say which is better - HSBC don't deal with brokers and I have no personal experience of them. BoS is brand new to my panel so I also have no prior experience of them service wise. I can say they ask for a heap of paperwork for the application though. Your best bet re service is probably to google them both for reviews.
     
    Samj likes this.
  14. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

    Joined:
    9th Jul, 2015
    Posts:
    1,078
    Location:
    Perth
    Its available Auswide and like Jess said they are new to my panel of lenders so have just got accredited with them.

    The issue with new lenders is I dont know a lot about the back office and how it works (or doesn't) as well as bank policy so opting for a "cheap" rate my end up snookering you depending on future plans and goals.

    Always best to consider you future plans and the banks policies to facilitate them over a cheap rate.

    HSBC seem popular with people from overseas who relocate to Australia from my experience.
     
  15. God_of_money

    God_of_money Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    72
    Location:
    Gold Coast
    Sorry to disagree with PC brokers again

    Bank of Sydney has been in Australia for many years under different trade name.

    Bank of Sydney has been operating in Australia under a full Banking Licence since April 2001

    Criteria:
    PAYG only - so not available for self-employed
    LVR less than 80%
    At least 1 year in same line of employment
    QLD, NSW, VIC, SA, WA Metro postcodes only... NOT Auswide
     
    albanga, Jess Peletier and Colin Rice like this.
  16. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

    Joined:
    9th Jul, 2015
    Posts:
    1,078
    Location:
    Perth
    Not at all :)

    Thanks for the correct information.
     
  17. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,091
    Location:
    Melbourne, Nationwide
    They have been around for years, but were previously known as Laiki Bank (which is from Cyprus). They changed their name to Bank of Sydney a few years ago when they decided to get serious about the Australian market. Prior to that they were almost unheard of outside of the Greek community.
     
  18. Samj

    Samj Well-Known Member

    Joined:
    14th Mar, 2016
    Posts:
    71
    Location:
    QLD
    I am hoping to talk to HSBC as I am considering to refinance with them. Currently I am with nab at 3.90%

    My last question is can change change their variable rate (for existing customers) in a few months time without RBA rate changes?

    Well, I guess they can. Have you ever seen any such financial institution runs such promotions and increase the rate ridiculously once they get enough customers?

    worst comes to worst, I can switch back. Found that their exist fee is ~$300, which is the standard I think.
     
  19. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,091
    Location:
    Melbourne, Nationwide
    Lenders can change their variable rate at any time. Some lenders are also known for 'batch pricing' which means they source funds as a pool of money and lend it to consumers. They then adjust the interest rates over time based on the ongoing cost of that batch of money. Invariably the rates increase despite new customers getting cheaper rates even under the same product.

    The best example of this is myrate.com.au. They always have a market leading rate on their primary product. In a very short time, borrowers find themselves paying significantly higher (and very un-competitive) rates even though they're still advertising the same low rate for the same product to new customers. They look like a cheap lender, but they're actually very expensive.

    This behavior happens a lot with the smaller securetized lenders.
     
    Whitecat and Dean Collins like this.
  20. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,159
    Location:
    Gold Coast
    In general thats a question lke

    whats the best car..................

    is it a 2 seater 500 dollar special or is it a 12 seater minibus, or is it actually a moped.......

    Borrower needs, but more so borrower resources have a large determinant on what isnt agreat lender.

    There are somestaples of what isnt a great lender simple due to product mix of policy, but whats best isnt that clear.

    ta

    rolf
     
    Gingin likes this.