HSBC mortgage review
finder.com’s rating: 3.8/ 5.0
Bad reviews make this lender a risky move.
HSBC offers a wide variety of mortgage products. But the overwhelming majority of current and past customers aren’t happy with the service they’ve received.
What is HSBC?
One of the world’s largest banks, HSBC was established in 1865 as The Hongkong and Shanghai Banking Corporation and now operates in over 70 countries.
But the bank has overwhelmingly negative reviews. As of August 2019, HSBC has an F rating with the Better Business Bureau (BBB), with 171 complaints closed in the last year alone. It also gets 1.4/10 stars on Trustpilot with 236 reviews.
Most of the negative reviews focus on poor customer service, with many reviewers claiming it’s difficult and time-consuming to get any help from HSBC. There are also reviews mentioning trouble with the website, mistakes on accounts and difficulty getting tax documents.
Out of the combined 265 reviews on Trustpilot and the BBB, 231 people gave HSBC two stars or less.
What types of loans does HSBC offer?
HSBC offers a variety of mortgage types, including:
One of the most common mortgage types, conventional mortgages are available with fixed or adjustable interest rates.
FHA loans are government-backed loans offered through private lenders for homebuyers with low to moderate income. They’re available with as little as 3.5% down.
Available for military service members, veterans and select military spouses, VA loans are available for $0 down.
A home equity line of credit allows you to draw from the value of your home as needed, somewhat like a credit card.
HSBC offers several different jumbo mortgages, with financing available for homes up to $3 million.
- HSBC Select Mortgage. This program offers home loans up to $2 million for borrowers with $0 to $10,000 in their HSBC deposit and investment accounts.
- HSBC Preferred Mortgage. This program offers home loans up to $3 million for borrowers with $10,000 to $75,000 in their HSBC deposit and investment accounts.
- HSBC Deluxe Mortgage. This program offers home loans up to $3 million for borrowers with $75,000 to $1,000,000 in their HSBC deposit and investment accounts.
- HSBC Elite Mortgage. This program offers home loans up to $3 million with the most competitive interest rates for borrowers with over $1 million in their HSBC deposit and investment accounts.
Other loan types
HSBC also offers:
- Refinance mortgages. Refinance your current home loan with HSBC to get a better interest rate or change your loan term.
- SONYMA mortgages. Available for first-time homebuyers who live in New York under SONYMA’s household income limit.
- CommunityWorks mortgages. Residents of Washington, D.C., and specific counties in CA, CT, DE, FL, MD, NJ, NY, PA, VA and WA who meet income level restrictions may be eligible for up to $7,000 in closing cost assistance.
- HomeReady mortgages. Available with as little as 3% down to buyers who meet income requirements.
The fees you’ll need to pay depend on how much you’re borrowing. HSBC has a calculator on their site that lets you estimate exactly how much you’ll pay in fees.
Using their calculator, you’d pay the following fees on a $300,000 30-year fixed-rate mortgage with 5% interest rate.
- Origination fee. $1,500.
- Appraisal. $300.
- Flood certification. $50.
- Tax service. $150
- Title service. $350
- Owner’s title insurance. $350
- Government recording fees. $25
- Survey. $175
- Pest inspection. $100
In this example, you’d pay $3,000, not including property tax or homeowner’s insurance, which vary based on location.
Factors that HSBC will consider when determining whether you qualify are your credit score, debt-to-income ratio, how well you’ve managed your prior credit and the length of your credit history.
First-time homebuyers with a credit score of at least 620 may qualify for a HomeReady loan with 3% down, while borrowers with a score of 580 or below may qualify for an FHA loan but will have to put 10% down.
If you’re planning on taking out a jumbo loan, you’ll need at least 10% down for loans up to $1.5 million, and 20% down for loans up to $3 million.
General requirements include:
- US citizen or permanent resident
- At least 18 years of age
- Two-year work history
Documentation can vary based on loan types, but you’ll generally need to provide:
- Two most recent years of W2s, if applicable
- Two most recent years of signed personal federal tax returns — include all schedules if applicable
- Two most recent years of signed business federal tax returns — include all schedules if applicable
- Most recent one month of pay stubs, if applicable
- Most recent two months of bank statements with all pages, including checking, savings, investment and retirement accounts. Any unusually large deposits must be documented and explained in writing.
- Unexpired government issued ID/permanent resident card/copy of passport with valid work visa
- Copy of rental agreement or copy of current mortgage statement
HSBC reviews and complaints
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.
Pros and cons of HSBC home loans
- 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.
- Negative reviews. The BBB gives it an F rating, and reviewers on TrustPilot complain about payment issues, resulting in its low score of 1.4 out of 10.
- Limited online application. After applying online, you still need to meet with a mortgage specialist to complete your application.
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How to get a home loan with HSBC
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.
- Get started with your application by visiting HSBC’s site. Hover over the Borrowing tab and click Mortgages.
- Set up a consultation with HSBC by clicking Get pre-approved.
- Fill out the required fields, then click Submit.
- An HSBC mortgage specialist will contact you to discuss your home loan options. Once you’ve provided your info, an HSBC representative will contact you.
Frequently asked questions about HSBC
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Shannon Terrell is a senior writer for Finder who has written over 400 personal finance guides. With a focus on investments and personal finance, she breaks down jargon-laden topics to help others make informed financial decisions. She studied communications and English literature at the University of Toronto.
With four Jumbo loan options, HSBC is best for borrowers looking for loans up to $3 million. It offers perks for HSBC customers on some mortgages and helps first-time buyers with programs like CommunityWorks, First Home Club and SONYMA. But customer reviews are largely negative, with complaints about lost payments and poor communication.