The 2022 winner in the Major Banks Home Lender of the Year category is HSBC – no small feat given the fierce competition that has reigned in the home lending space over the past year.
As the tide begins to turn, we’ve seen mortgage rates – especially variable rates – hit some of the lowest points in years.
In this environment, HSBC has not only managed to offer a range of relatively inexpensive home loans compared to its main banking competitors, but has also kept pace with many non-bank and digital lenders, who have generally offered the most options. pointed.
HSBC offers variable rates starting at 2.52% pa for loan-to-value ratios (LVR) below 70% and fixed rates starting at 4.07% pa over a one-year term for LVRs less than 80%.
“We’ve always sought to be competitive on interest rates – that’s one of our key principles,” says Rory McCotter, head of secured lending at HSBC.
“Lower funding costs last year also helped drive some of those interest rates down. But we wanted to make sure we were competitive on rates to go along with the strong service offering we have. .”
In addition to attracting mortgage holders by keeping loan costs low, HSBC has also successfully tapped into the booming refinance market.
Figures from the Australian Bureau of Statistics show that in the year to March 2022, around $190 billion in loans were refinanced from one lender to another – one of the highest amounts in 12 months never recorded. As McCotter notes, the bank was helped on the refinancing front by its $3,288 cashback incentive.
“A good cashback offer combined with good interest rates has really helped us gain traction, especially in the refinance market. savvier about their finances – so shop around for better rates and cashback offers.”
HSBC is however aware of the need to help customers adjust to a new world of rising interest rates.
“For us, it’s about communication between us and the clients, as well as on the broker side,” says McCotter.
“We are aware of changing interest rates, so we encourage clients to have a conversation about rising interest rates and speak to a relationship manager or their broker.”
AMP ranked second this year after doing particularly well with its longer-term fixed rate mortgages.
The bank currently offers three-year fixed rates starting at 4.79% pa and five-year rates starting at 5.04% pa for LVR below 60%.
Third-placed ING has done well in the home lending space, although its core home lending has been a strong point. The online bank currently offers variable rates starting at 2.34% per annum for LVR below 80%.
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