Find out how HSBC Bank can help you finance your home or your business.
As a homeowner, your work is never really done. Whether it’s getting the gutters cleaned, fixing that leaky faucet, remodeling or even refinancing, there’s always something to do. The same goes for when you own a business. Every time one undertaking ends, another begins.
HSBC can help you tidy up that task list with financing that fits your needs. This guide goes over the different loan offerings HSBC has, and covers the benefits and drawbacks of each.
What types of loans does HSBC offer?
HSBC offers several a range of loans to meet your specific financial needs.
- Home equity line of credit. You can get a credit line of up to $350,000 if you’re new to HSBC or up to $1 million if you’re a Premier client. HELOCs allow you to use the equity of your home as collateral to get funding for major expenses. Rates can be fixed or variable and vary by state.
- Mortgages and refinancing. Buy a home or refinance your existing one with up to $3 million in spending power if you qualify for a Premier Deluxe mortgage. Conforming fixed- and adjustable-rate mortgages can bring you up to $636,150 for a single-family residence, if you qualify.
- Business loans. Term loans with flexible repayment schedules and fixed or floating rates can be taken out if you and your business qualify. HSBC also offers an SBA Loan Program. Learn more about business loans.
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Why should I consider taking out an HSBC loan?
HSBC loans come with quite a few features beyond those typical of a traditional bank.
- Dedicated mortgage consultants. Whether you’re buying your first house or refinancing the one you already have, a mortgage consultant is available to walk you through the entire process.
- Move from an ARM to a fixed-rate mortgage. An adjustable rate mortgage (ARM) may be ideal to start, but there’s the possibility of it becoming more expensive or unstable than anticipated. With HSBC, you can switch to a fixed-rate mortgage for more predictable payments that allow you to budget with ease.
- Rate discounts available. Qualifying Premier and Advance clients can receive 0.50% and 0.25% rate discounts, respectively, with autopay from an HSBC checking account.
- Easy access to funds. With a HELOC, you can access your funds by writing a check. It’s old-fashioned, but it’s easy.
- Closing costs. When you have a HELOC of under $500,000, you won’t pay anything for closing costs.
How much will it cost me to borrow with HSBC?
Loans from HSBC come with rates that differ by the type of financing and your client status. Premier and Advance clients have access to more favorable loan amounts when it comes to mortgages and refinancing. Lower rates with any of the financing products and rate discounts are also perks of being a Premier or Advance client.
Closing costs for a HELOC typically range from $270 to $19,900 but can be higher. Remember that if your line of credit is under $500,000, you won’t have to pay closing costs.
Are HSBC loans safe?
HSBC is an international business with more than 37 million customers. Conducting business across 70 countries, it has to keep its website security on point. Outside of SSL encryption, HSBC also offers an Online Guarantee. You won’t be liable for any unauthorized online charges.
How to apply for a loan with HSBC
Each HSBC loan comes with different requirements. However, you’ll need to meet a few overarching eligibility criteria:
- You must be at least 18 years old.
- For US products, you must be an American citizen or a permanent resident of the US.
- You must have demonstrable, consistent income that can support your existing debt obligations and your desired loan amount.
If you meet the eligibility requirements and you’re ready to apply, you’ll find that products also come with different steps. Depending on the loan, you may be able to at least begin the application process online.
Documentation will also vary depending on your funding option, but at minimum you will need a government-issued ID such as a driver’s license or passport.
Benefits and drawbacks to borrowing with HSBC
- Air-tight security. Security is taken extremely seriously, and HSBC provides users with tips to protect themselves and their businesses. HSBC also holds a $0 liability Online Guarantee, meaning that you won’t be at fault for any unauthorized charges on your account.
- Advisors available. When you’re ready to apply for a mortgage with HSBC, you’ll have access to an advisor who can help you through the process.
- Tools and resources offered. HSBC offers tools to find home equity rates, calculate your payments and more.
- Best rates are limited. You must be an existing customer with HSBC and hold a special client status to get the best rates and mortgage packages.
- Limited loan products. US-based customers have only three types of loan products to choose from.
- No online application. To apply, you’ll have to call or go to a local branch.
HSBC is a seasoned lender that offers neatly packaged products. If you’re looking to use any of its loan products, it pays to be a member: If you’re an Advantage or Premier member, you’ll typically get the best rates and terms.
Taking out any kind of financing is a big step. Before you settle with any one lender, do your research and compare your options. It can be helpful to speak with a financial advisor or even a trusted friend.