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HSBC mortgage review

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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.

Details

Loan types Purchase, Refinance, HELOC, Jumbo, FHA, VA
Minimum credit 620
Minimum down payment 3%
Origination fee N/A
Other 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
Available States Available in all states

Pros

  • Wide range of loans & terms
  • Perks for HSBC customers available
  • Special mortgage programs available
  • Online account monitoring via dashboard

Cons

  • Negative reviews
  • Can't fully apply online
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.

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:

Conventional

One of the most common mortgage types, conventional mortgages are available with fixed or adjustable interest rates.

FHA

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.

VA

Available for military service members, veterans and select military spouses, VA loans are available for $0 down.

HELOC

A home equity line of credit allows you to draw from the value of your home as needed, somewhat like a credit card.

Jumbo

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.

HSBC fees

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.

Requirements

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

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

Pros and cons of HSBC 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 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.

Compare other mortgage lenders

If you’re not sold on HSBC, there are plenty of other mortgage lenders for you to check out.

Name Product Loans offered State availability Min. credit score
Axos Bank
Conventional, Refinance, Jumbo, Home Equity, Fixed, Adjustable, FHA, VA, USDA
Available in all states
620
Explore a full suite of home loan options with this direct online lender.
Morty
Morty
Conventional
AL, AR, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, MD, ME, MI, MN, MS, MT, NC, NE, NJ, NM, OH, OK, OR, PA, SC, TN, VA, WA, WI, WV
680
Requires minimum credit score of 680 for conventional loans above $100,000 only. Not currently offering FHA, VA, USDA, Jumbo, or certain types of refinancing. A short online form presents you with multiple loan options and terms to choose from. Not available in every state: make sure you live in a qualifying state before applying.
Rocket Mortgage
Conventional, Refinance, Jumbo, FHA, VA, USDA
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
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Compare up to 4 providers

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.

Frequently asked questions about HSBC

Home loans ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We analyze top home loan providers and rate them one to five stars based on factors that are most important to you. These factors include: rates and fees, product selection and borrower experience.

Read the full methodology of how we rate home loan providers.

Expert review

Shannon Terrell

Review by


Shannon Terrell is a writer for Finder who studied communications and English literature at the University of Toronto. On any given day, you can find her researching everything from equine financing and business loans to student debt refinancing and how to start a trust. She loves hot coffee, the smell of fresh books and discovering new ways to save her pennies.

Expert review

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.

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