The lender’s Home Value Loan has a comparison rate of 3.60 per cent (based on a secured loan of $150,000 over the term of 25 years). According to data sourced from finder.com.au, it is the “lowest rate” of national banks (when compared to national with a branch network across multiple states/territories).
Speaking of the new rate, Alice Del Vecchio, head of mortgages and third-party distribution at HSBC Australia, commented: “Switching your home loan to a lower rate is one of the quickest ways to save money each month, and [it] can help you reduce the total size and length of your loan.
“[But] a new home loan is not just about a great rate. You should also remember to also look at the monthly fees, requirements for lenders mortgage insurance and the degree of flexibility, as a mortgage should be considered in its entirety.”
As such, Ms Del Vecchio outlined that the Home Value mortgage does not have set-up or monthly account keeping fees.
The introduction of the new rate came as HSBC Australia announced a new partnership, joining the lending panel of major brokerage Mortgage Choice.
The Home Value Loan is available through the bank’s network of branches and through Aussie Home Loans and Mortgage Choice brokers.
[Related: HSBC on economic growth since the GFC]