HSBC Mortgage review April 2018 | finder.com

HSBC mortgage review

Rely on this big bank for almost any kind of home loan

Buying a home is one of those life events that’s both thrilling and stressful — especially if you’re new to the market.

HSBC Bank offers a range of mortgages and home loans options for both the first-time and veteran homebuyer — including premier and advance deluxe mortgages for HSBC customers and mortgage options for international borrowers.

We break down how this traditional lender can help most anybody open the door to their new home.

Product details

FeatureDetails
Product nameHSBC mortgages
RatesFixed, adjustable
Fixed-rate terms15–30 years
Adjustable-rate terms5/1, 7/1, 10/1, 30 years total
Repayment typePrincipal and interest, interest-only ARM Premier and Advance Deluxe loans
Maximum loan
  • Up to $424,100 for a single-family home
  • Up to $636,150 on Super Conforming
  • Up to $3 million for Premier and Advance Deluxe
Fees
  • Appraisals: $25–$155 for broker price opinion, $25–$1,000 for full appraisal
  • Inspection: $12–$35
  • Property preservation photos: $0–$175
  • Foreclosures: $100–$4,950 for attorney fees, $5–$1,500 for process server, $5–$2,875 for publication
Loan purposesOwner-occupied, investment, construction, refinancing
DiscountsUp to $1,500 in closing credits for qualifying Premier Deluxe mortgages
Service limitationsUS properties only
Customer servicePhone

Who is HSBC?

One of the world’s largest banks, HSBC was established in 1865 as The Hongkong and Shanghai Banking Corporation. HSBC has become an international bank operating in over 70 countries. Customers of HSBC can access trusted services including banking, investing, business accounts and wealth management.

Pros and cons of Freedom Mortgage home loans

Pros

  • Range of loans. Tap into a wide selection of mortgage terms, sizes and rates, from fixed-rate financing to FHA and VA loans.
  • Perks for HSBC customers. Premier and Advance Deluxe mortgages offer exclusive rates and priority processing to customers with HSBC investments.
  • Special mortgage programs. HSBC CommunityWorks, First Home Club and SONYMA programs are available to help first-time homebuyers with closing costs, flexible lending and competitive rates.
  • Online account access. Monitor the details of your home loan through HSBC’s 24/7 online banking platform.

Cons

  • Negative reviews, The BBB gives it a D rating, and reviewers on TrustPilot complain about payment issues, resulting in its low score of 2 out of 10.
  • Limited online application. After applying online, you still need to meet with a mortgage specialist to complete your application.

What can I expect with an HSBC mortgage?

  • High-max loans. Single-family homes are eligible for a up to $424,100, while “super conforming” mortgages offer higher limits of up to $636,150 for homes designated high-cost areas. If you qualify for an HSBC Premier or Advance Deluxe mortgage, you could see approval for up to $3 million.
  • Interest-only payments. With ARM Premier and Advance Deluxe loans, you may qualify to pay interest only on a variable-rate mortgage.
  • Automatic payments. Automate your mortgage payments with flexibility, choosing from weekly, biweekly, twice-monthly or monthly payments.
  • Discounts. If you’re approved for HSBC’s Premier Deluxe mortgage, you’re eligible for closing cost credits of up to $1,500. CommunityWorks and HSBC First Home Club programs offer up to $7,500 in closing cost assistance for eligible participants.

What types of home loans does HSBC offer?

Type of loanAvailable forDetails
Premier DeluxeFor HSBC customers with a U.S. Premier checking account and combined personal deposit and investment balances of $100,000+.Borrow up to $3 million with fixed or adjustable rates. Closing cost credits of up to $1,500 available.
Advance DeluxeFor HSBC customers with a US Premier checking account and combined personal deposit and investment balances of $10,000+.Borrow up to $3 million with fixed or adjustable rates.
Conforming (fixed or adjustable)Available for most applicants.Borrow up to $424,100 for a single-family home or $636,150 on a super conforming mortgage.
SONYMAFor first-time homebuyers who live in New York under SONYMA’s household income limit.Fixed-rate loans only.
CommunityWorksAvailable to residents of Washington, D.C., and specific counties in CA, CT, DE, FL, MD, NJ, NY, PA, VA and WA. Income level restrictions may apply.Get up to $7,000 in closing cost assistance.
FHAFor select first-time homebuyers.Lower down payments than traditional mortgages.
VAAvailable to active servicemembers, veterans and eligible family members.Loans of up to $417,000 with 0% down payment for borrowers with good credit.

 

How much could I pay for an HSBC mortgage?

HSBC doesn’t offer the transparency of a fee schedule on its website. But it does provide a mortgage calculator for customers to estimate their rates and associated fees.

Using the mortgage calculator to crunch the numbers on a 30-year $300,000 mortgage with a 20% down payment results in potential fees up to $7,250 plus 5% interest on the home loan.

Type of feeTypical amount
Property tax$3,250
Homeowners insurance$1,000
Origination fee$1,500
Appraisal fee$300
Flood certification$50
Tax service$150
Title services$350
Owner’s title insurance$350
Government recording fees$25
Survey$175
Pest inspection$100
Total Fees$7,250

What do customers really say about HSBC?

In general, online reviews are worrisome. HSBC customers complain of miscommunications from the provider that resulted in payment mixups and refinancing issues. Some borrowers report HSBC claiming payments weren’t made on customer home loans for years.

HSBC Bank overall garners a low 2 out of 10 on Trustpilot based on 46 reviews. It doesn’t do much better with the Better Business Bureau, which gives it a D rating.

If you pursue a home loan with this provider, make sure to keep careful documentation of your payments, confirming they’re processed in a reasonable time, over the course of your loan.

How to apply

While you can get the application process rolling online, you won’t be able to complete your application without meeting with an HSBC mortgage specialist.

    1. Get started with your application by visiting HSBC’s site. Hover over the Borrowing tab and then click Home Loans.

I got the loan. Now what?

  • Automate your payments. HSBC lets you select the frequency of your loan payments. Choose from monthly, biweekly or weekly due dates.
  • Don’t be afraid to ask for help. If you find yourself unable to repay your loan on time, reach out to HSBC customer service. This lender may be willing to modify your payment schedule while you get back on your feet.

I didn’t get the loan. What should I do?

After being rejected for a home loan, find out what happened to avoid any future surprises. There may be a problem with your credit report, your income or meeting the credit requirements.

Make sure there aren’t mistakes with your credit score and contact your credit bureau to fix it. You can also take steps to improve your credit score (and wait for it to recover from that hard credit check when you applied for the mortgage) before you apply for another loan.

Banks have a reputation for having tighter requirements than other lending institutions. Instead of reapplying with HSBC again, take a look at your local credit unions and online lenders to see if they might be a better fit.

Bottom line

HSBC offers home a range of mortgages that include the usual suspects — fixed-rate loans and ARMs — as well as products designed specifically for first-time homebuyers and VA mortgages, including special programs that feature closing cost assistance and flexible lending.

But selecting a mortgage for your home is a big step. Compare home loan options with other providers to find the best option for you and your new home before making a decision.

Frequently asked questions about HSBC

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