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HSBC comes across as a lender for the well-heeled: To qualify for its HELOC, you need a mortgage or six figures in assets – held in its accounts – or at least $5,000 in monthly deposits. And for the best rates, it talks in terms of $100,000–$500,000 credit lines and a $25,000 initial draw. Those rates are quite competitive, though, and there are no closing costs, or annual or application fees for its HELOC, which offers fixed-rate and interest-only-payment options. The bank emphasizes personal contact — you’ll have to talk to a human at some point to apply — but branch locations are highly limited.
HSBC Bank is a U.S. subsidiary of London-based HSBC Holdings plc, one of the world’s largest banking and financial services companies. Its history in the United States dates back to 1875 when it opened an office in San Francisco. Today, it serves about 400,000 customers, providing wealth and personal banking products and services, including home equity lines of credit (HELOCs) and mortgages, as well as savings and investments.
HSBC Bank offers HELOCs to select banking customers: those with U.S. Premier Relationship status (see “How to qualify,” below). The bank doesn’t offer home equity loans, although there’s an option to convert your HELOC balance to a fixed rate. (You can fix up to three balances at one time for terms of five to 20 years.)
With the HELOC, you can access a credit line of up to $500,000. You’ll start with an introductory variable APR for one year, then another (usually higher) variable APR — based on your creditworthiness, state of residence and prevailing rates — kicks in for the remainder of the draw period and repayment term. HSBC’s advertised rates apply for HELOCs secured by a primary home, a line size of $100,000–$500,000 and a total loan-to-value ratio of 60 percent or less. Rates may be higher if you don’t meet this criteria.
You’ll have two payment options: principal and interest or interest-only. With the former, you’ll pay principal and interest during both the draw and repayment terms. With the latter, you’ll make interest-only payments during the draw period (in other words, lower payments), then pay a higher amount that includes both principal and interest during the repayment term.
HSBC scores a perfect 5 out of 5 for affordability, primarily because of its highly competitive APRs and lack of fees.
HSBC earns a 4.5 out of 5 for availability primarily because of its large footprint.
HSBC scores a 3.3 out of 5 for borrower experience because it doesn’t offer a traditional fixed-rate home equity loan and has limited locations.
You can tap into your home equity — the difference between your home's worth and what you owe on your mortgage — with a home equity loan or a HELOC. With those funds, you can tackle a variety of expenses, like debt consolidation or home renovations.
However, before you dive in, it's important to figure out your loan-to-value ratio (LTV). Lenders use your LTV to determine how much of your equity stake you can actually borrow. (It’s typically 80 percent, although some lenders allow you to access as much as 90 percent.) The amount of equity they’ll let you tap is one consideration when choosing a lender. Be it a retail bank, online lender or credit union, it may offer different home equity loan rates and terms, too. That’s why it’s important to shop around for the best deal.
HSBC is not accredited by the Better Business Bureau, but gets an A+ rating. Out of more than 1,200 reviews, HSBC gets a ‘Bad’ rating on Trustpilot.
You must be or become an HSBC client – specifically, a Premier Relationship customer. That means you open a Premier checking account and:
HSBC Bank evaluates your credit score, debt-to-income (DTI) ratio, employment, income and property-related information to determine eligibility for a HELOC. HSBC notes that applicants with excellent credit and a total loan-to-value ratio of 60 percent on their primary home receive the best rates.
Property insurance is required; flood insurance may be required, depending on your location.
You can start the process through the bank’s website by providing some information online, including the expected loan amount, your time frame for the financing, your credit score and your state. A loan officer will then reach out to you to continue the process via email or on the phone. You can also create a HSBC account online. If you have questions, you can call 844-472-2684 (844-HSBC-MTG).
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HSBC
NMLS: 399799
Bankrate score
4.3
Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score.
Customer score
N/A
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
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Bankrate score
Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score.
Customer score
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
|
Bankrate score
Bankrate scores are objectively determined by our editorial team. Interest rates, fees, loan terms, borrower requirements and customer service are some of the factors that make up Bankrate's score.
Customer score
Star ranking and total number reflects the lifetime customer reviews received while this lender has been an advertiser on Bankrate. To help serve you with relevant information, the customer reviews shown are limited to only those that this advertiser has received during the past 12 months.
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Loan amount |
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Up to $500,000 |
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Min. credit score required |
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Not specified |
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Repayment terms |
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5 to 20 years for fixed-rate option |
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Funds available in |
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Not specified |
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Recent customer review |
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Customer review No reviews available yet. N/A |
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NMLS: 399799
This lender has 0 recent reviews.
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