Powered by MOMENTUM MEDIA
subscribe to our newsletter

HSBC reveals third-party plans

HSBC has broken its silence amid speculation that it could re-enter the third-party channel.

Speaking to Mortgage Business, an HSBC spokesperson confirmed that the lender does not plan on re-entering the mortgage broker market.

The confirmation comes after months of speculation and eagerness among aggregators to add the lender to their panels.

HSBC sold its broker-originated loan book to Firstmac in 2006, which at the time consisted of over 10,000 customer accounts worth $2.26 billion.

Since then the lender has grown its loan book through its direct channel by 119 per cent to a current book value of $8.5 billion.

Advertisement
Advertisement

PROMOTED CONTENT


In the 12 months to May, HSBC’s loan book grew by 8.7 per cent, with investment loans accounting for more than half of its residential lending (53.8 per cent).

Mortgage broker and N1 Finance managing director Ren Wong said the lender has been actively targeting the non-resident investment loan market.

“That is probably their main market at the moment,” Mr Wong told Mortgage Business, adding that without an offset product, the bank would not be as competitive as other mortgage providers.

“Overseas investors can’t buy owner-occupied, they can only buy investment property, so in some ways having an offset feature is really not their concern anymore,” he said.

“There is also the recognition with the HSBC brand among Chinese buyers.”

Last month Fairfax reported that HSBC aims to double its share of the mortgage market within three years, which would see its loan book swell to $17 billion.

HSBC local head of retail banking and wealth management Graham Heunis told Fairfax that the bank hopes to double its share by targeting wealthy property investors and people with strong overseas links, including migrants.

HSBC reveals third-party plans
mortgagebusiness

Latest News

The chairman of the financial services regulator has resigned from his position, effective immediately. ...

Refinancing settlements for the first nine months of the calendar year 2020 are up 27 per cent on last year’s volumes, having peaked in Ju...

The Tasmanian-based lender has seen a 43 per cent rise in settlements in the first quarter of the financial year, driven by strong demand fr...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: Victoria’s surprising appetite for new homes

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.