Available on refinance applications submitted to HSBC from 15 February 2021 to 30 September 2021 and settle by 30 November 2021.
Fees
$600 Establishment Fee ($0 with promotional offer)
$150 Settlement Fee ($0 with promotional offer)
Valuation Fee quoted on application (I didn't pay anything)
The app isn't great but works. No Payid but accepts fast payments.
Their fixed rate is even lower, 1.88% but only for 2 years.
I got 1.75% for 3 yrs with them, settled a month ago
OO I assume. How much is your loan amount to get this rate?
That's good rates
Me 11:49: I was looking at refinancing next month and was interested if you could match my friends 1.75% , 3 year fixed.
Shivam 11:52
The rates published on our website are non-negotiable and everyone gets the same pricing, refer this rate list here: https://tictoc.com.au/home-loans/rates-and-fees
Shivam 11:53
Also, we don't offer any discounts/cahsbacks/any waivers etc. but our rates are quite competitive.
No idea how you got it…
@frazel: Your link is for tictoc - did you chat to the wrong lender? Also, I got my rates after negotiating with the premier relation manager (you get one allocated to handle your application), not online chat.
Another question @boku
Your rate was negotiated down from the advertised rate of 2.09%?
https://www.hsbc.com.au/home-loans/products/rates/#owner-occ…
3 Years
2.09% p.a. (packaged)
2.29% p.a. (non-packaged)
But thats not comparison rate which is 2.86% p.a. more than their variable rate
🤦🏻♂️
Be careful when looking at comparison rates. They are based on a $150k loan including all fees and charges.
If you have a large loan a lower rate can outweigh higher fees and charges making the loan cheaper in the long run then taking a higher interest rate with low fees because it has a better ‘comparison rate’.
@sigh: Thanks for putting an effort in explaining not just negating and I understood what you are trying to say! Given my situation, HSBC variable 2.20% (CR) is still better option even though fixed interest rate is cheaper due to other factors like putting more than 10k each year into loan account to reduce the interest.
Comparison rate for fixed seems higher.. 2.86% p.a and still no offset?!
Tictoc 3 year fixed isn't the greatest
Literally two people above you quoted they got lower fixed rates at 1.88%@2 years and 1.75%@3 years respectively, close but no cigar
@sk3iron: The two people above commented after carpecrash, so a bit harsh to have a go at them for that.
Comparison rates are useless for most people. They are based on unrealistically small balances of $150k or something which no new buyer will have. The low balance skews the effect of fees which effectively disappear with mortgage is in the million+ range.
What's tictocs 3 year fixed rate?
If you factor the cashback in, the interest rate is brilliant especially if you hop away after not too long. I find it good jumping around the banks that hand out cashback. Stick with them for 6 months and move on.
Do you stick to variable loans?
Does this not impact credit rating due to numerous credit checks?
The problem will be if you get bait and switched where the rate cycle turns upwards. It's one worry I have of chasing lower rates as my negotiated discount % off the variable rate with my bank is pretty decent and I know it's their main reference rate. Chasing the cheaper alternatives the worry is when the cycle turns up their variable rises far outpace sticking with the current major…
How many cashbacks have you received?
How does your credit report look? The people working at the back end aren't dumber than you are…
I got the 3k cash back with Bank of Melbourne 12 months ago and will jump on this one now too. Interest rate is 0.40 lower too which is nice.
Yeah that's a bit cut throat, I use a broker and I think they need 12-18 months in order to keep their fee. So I will be looking to hop around every 12-18 months if HSBC can't keep their interest rate competitive. Mind you it costs about $1,000 to re-finance so you need those cash backs to make it worthwhile. Stayed with my first bank for just over 3 years, realised that there's a loyalty tax when they refused to match other banks interest rates so that's why I'm moving.
I agree TicToc is great, but they're only a good fit for lending if you're refinancing and PAYG permanent employee with good credit history. There are good reasons to stick with major banks under certain scenarios.
lol i wonder how many ppl down-voting me have a loan with a big bank
yeah can't understand all this downvoting, you make a good point actually
Tic toc don't do split loans, which was a deal breaker for me.
negged for the virtue signalling/fossil fuels comment.
Because they use bait-and-switch tactics.
They first lure you in with low interest rates; pooling you in a product that is publicly not available. Then they grandfather that product, then they jack up their rates.
Then, they create a new product with the lower interest rate to bait more customers. Repeat. Loop.
At least with bigger banks, their products are publicly advertised, so the rate you get is what's advertise on their website.
Do we apply by ourselves or do we need to go through a broker? Any recommendations?
I got Mebank pre approval now but the rate is nowhere near this and it took Mebank 7 months to pre approve my loan application through a broker ! 7 months !
Go direct through HSBC. Was a totally painless process when I refinanced.
Did you already have an account with them first or they set that all up for you?
I can give you the details of my broker if you'd like. I've applied twice and it took 2-3 days for a pre-approval. Let me know if you want it.
Thanks mate. PM'ed you.
Does anyone know of any similar cashback deals for investment loans?
same cashback if you are refinancing your investment loan with them. Check their website as we are not HSBC staff, lol.
https://www.hsbc.com.au/home-loans/products/fixed-rate/
Yeah, it would be good to specify this deal is only for Owner Occupied loans, not for IPs.
Does anyone know how to apply if you are in lockdown? Do you still need to go to a branch?
last time I checked,their KYC is bit tedious and time consuming.
KYC?? I have no idea what that is.
KYC =Know Your Customer…as part of application,they will ask to validate your documents such as Passport / DL etc
Know your customer.
Also my broker use an app to talk to me and took my photo through an there, it's called IDyou since they couldn't do face to face due to covid.
Kentucky yield chicken
What does KYC do?
@[Deactivated]: Validates that you are who you say you are. Banks and providers all have to do KYC on their clients especially since there are lists of banned persons/companies/countries as well.
There’s also questions around conflicts of interest, too.
I know this because I worked in banking for 21 years. Now in funds management but they have the same concerns
It is noted 2.19% is for lvr <70%.
Any idea what an 70-80% lvr bracket will get you?
No word on Interest only rates.
What would be the benfit to interest only at this point in time? The rates for principal and interest are under 2% in some cases.
Can use the principal money to invest.
Yeah that is a good point, plus I guess you free up monthly liabilities for another property.
I’m going through the process myself. So far it’s good apart from encrypted emails system they use which is pain in the head to open.
Would there be a clause or would they not approve me for this on the basis I have a 450k home loan but 450k in an offset account. Could I potentially get free money by changing banks?
Generally nothing to stop you doing this but read the fine print
No offset account on this offer
In the same boat. Here is the offset offer https://www.hsbc.com.au/home-loans/products/variable-rate/
I feel like they would check your current statements and see you aren't paying any interest then not approve the loan. If you could do this what stops you continually swapping loans and getting free $$
I doubt this. I've swapped three times in my home loan just to get the cashback. Lots of people do this. There isn't any clause regarding the need to be paying interest with the current provider that I'm aware of. Anyway, we could easily move a hundred thousand out of our current offset and start paying interest.
So you’re not actually affected by interest rates as you’ve basically got an interest free loan given your offset matches your home loan? Just wanted to confirm my understanding.
Yeh that's it
This rate would be with redraw and not offset.
Anyone comment on rates with offset?
2.29% with offset. But remember this is when you're < 70% LVR (which is pretty fine printed).
How's that compare to other low variable rates that come with an offset,?, Were on 80% lvr now but possibly can use offset to reduce to <70% lvr bracket but most of the cheap online dont do offsets??
Tictoc 1.89% with offset available for an extra $10/m (OO, LVR up to 80%)
https://tictoc.com.au/home-loans
Homestar also have decent rates and offer offset (e.g. 2.14% for OO, 80% LVR with offset)
https://homestarfinance.com.au/home-loans/compare-home-loans…
Anyone got a big 4 to match the variable offset rate?
Go to ANZ with their 1 year fixed rate it’s 100% offset and they have a 3k rebate. You’re best to use a broker at ANZ as they’re a mess to deal with and experience with the process will help.
@djmm: Haha… A product of big 4 thinking.. i've only had fixed offset loans for the last 15 years with 3 different providers.
ANZ have now got on board, but not as good as say TRB, Easystreet etc with no monthly/yearly/package BS fees.
@djmm: Not sure what you mean? I've got half fully offset and it attracts $0 interest. So all checks out…
+395 annual fee for offset
So this is basically starting a new loan application where they access your repayment abilities?
If I have an existing loan with another lender I wont get an automatic approval without provide all the information right?
That's what I want to know.
As far as I know from dealing with all the scummy banks, you will definitely need to provide all the details again and get assessed on your ability to repay.
They wouldn't be a 'responsible lender' if they didn't.
I have a question for existing customers, do they usually increase the rate right after the settlement? For example, ING is the one who tends to do this practice.
HSBC are pretty good and usually only make rate changes when the reserve bank do. I signed up for this offer in 2016 https://www.ozbargain.com.au/node/267428 and since then the rate for the loan came down to 2.83%. I am going to apply for this deal so I can hopefully get my rate down to 2.19%
Does the $3288 get dissolved in fees?
No depending what state you’re in you’d be 1000 - 1600 all in assuming you aren’t fixed and paying a break cost.
Personally would recommend a fixed rate as we expect rates to increase in the next couple of years and unless you are offsetting (which you should go for a split loan depending on available funds), I would fix for 2-3 years.
I am only paying $600 (300 discharge from my old bank and 300 mortgage de registration amd registration) nothing to the new bank. In pocket will be 2500+
Went through the process a few month ago and it was quite the ordeal.
Pre-approval was reasonably quick, but going to final approval/settlement was slow and full of delays (made worse by COVID). There is also lots of due diligence on things like other loan balances and credit card limits etc. Almost missed our 6-week settlement deadline. If you are planning on going to auction you may want to consider another lender or ask your solicitor to extend the settlement period on the contract.
Then there were more hassle in fixing part of the loan and even getting access to Internet banking.
yep 100% agree, going through that right now with these mob. Absolutely horrendous! As @theoofside said full of delays and this is the worst bank I've dealt with in terms of the home loan process. They were ballsy enough to ask me to extend settlement by 3 weeks!
100% agree with this.
I've gone thru mortgage and re-mortgage process with HSBC a few times in the last 10 years.
The frontline staff are usually fine, its the backend loans department that's horrendous to deal with.
They are so slow and only tell you there's problems in the last minute.
Re-finance is fine, but if you're buying a new properly I would be hesitant to go with HSBC. You will likely miss your settlement or be super stressed trying to make it.
I moved all loans away from HSBC just to prove a point to the bank managers there.
Their phone banking are also full of security issues, I've had experience where someone was able to call into their call centre to activate a stolen debit card.
I personally would avoid HSBC completely.
How much is annual fee?
No annual or monthly fees on this home loan
Much harm in this if you refinanced a year prior? My current bank is no longer competitive but I don’t want my credit rating to be hit hard by chopping and changing.
Unless you’re applying numerous times a year you will be absolutely fine.
In the last three months, I've refinanced an investment mortgage (bagging a lazy $3k) and applied for two credit cards (one of which was Amex and got rejected), yet my credit score has jumped up by 100 points, sending me from very good to excellent.
I wouldn't worry about your credit rating. It's there to be used, not safeguarded like a family heirloom.
How much is their fixed rates?