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HSBC: 2022 Home Equity Review

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Courtesy of HSBC
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HSBC is a multinational banking and financial services company headquartered in London. Its U.S. subsidiary operates from New York City, and it offers banking and other financial services, including a home equity line of credit, in all 50 states.

HSBC’s HELOC comes with competitive interest rates and low costs, especially if you have an established relationship with the bank.

HSBC snapshot

Loan types offered HELOC
APR range Starting at 3.35% (with autopay)
Loan amount range Up to $250,000
Minimum credit score required Not specified
Repayment terms 5-20 years
Average time to approval Not specified


Before you apply for any financial product, it’s important to know both the benefits and the drawbacks. Here’s what to know about an HSBC HELOC:

  • Competitive interest rates: The lender offers an introductory variable APR as low as 1.74 percent for the first 12 months, then rates as low as 3.35 percent APR based on your creditworthiness, existing relationship with HSBC, state of residence and other factors. According to Bankrate, the average HELOC rate is 4.7 percent, as of late February 2021.
  • Low costs: The lender doesn’t charge an application or annual fee, and loans of less than $250,000 won’t be charged closing costs. You may, however, be on the hook for some fees if you cancel your account early.
  • Fixed-rate option: The HELOC has a variable interest rate. However, HSBC allows you to convert some or all of your HELOC balance to a fixed-rate loan. Doing this can lock in your interest rate and protect it from increasing in the future.


HSBC’s HELOC also has some downsides, including:

  • No online application: You can share your information online to get a call from a mortgage consultant, but there’s no option to apply on your own through the bank’s website.
  • No home equity loan option: While you can convert some or all of your HELOC balance to a fixed-rate loan, the bank doesn’t offer a separate home equity loan product, which can be better if you want an installment loan instead of a revolving line of credit.

Types of fees charged

There are no application costs and no annual fee for an HSBC HELOC. Also, there are no closing costs if you borrow $250,000 or less.

There’s no prepayment penalty. But if you close your account within three years, you’ll be assessed a termination fee of $500 or $750, depending on where you live, plus any mortgage tax-like fees HSBC paid on your behalf at closing.

HSBC offers two opportunities to get a discount on your interest rate. When you close, you’ll get a 0.25 percent discount if you make a draw of $25,000 or more. You’ll also qualify for a 0.5 percent discount if you set up automatic payments as a Premier checking customer or 0.25 percent if you have an Advance or Personal checking account.

Loan products offered

HSBC offers several options for buying and refinancing a home, and it also allows you to tap your home equity with a HELOC.

With the HELOC, you may access a credit line of up to $250,000. As for interest rates, you’ll start with an introductory variable APR as low as 1.74 percent for the first 12 months. After that, rates start as low as 3.35 percent APR based on your creditworthiness, existing relationship with HSBC, state of residence and other factors.

The HELOC has two payment options: principal and interest or interest-only. With the former, you’ll pay principal and interest during both the draw and repayment periods. With the latter, you’ll make interest-only payments during the draw period, then pay principal and interest during the repayment period.

You’ll also have the option to convert some or all of your HELOC balance to a fixed-rate loan. You can do this up to three times, and repayment terms range from five to 20 years.

How to qualify for a home equity loan with HSBC

To see if you qualify for a HELOC with HSBC, the lender will evaluate your credit score, debt-to-income ratio, employment, income and property-related information.

You also need to be an existing banking customer with HSBC. And while you don’t need to have a certain type of checking account to qualify, different levels come with different benefits.

To qualify for a larger autopay discount and higher loan amounts, you’ll need to be a Premier checking customer. To qualify for Premier status, you’ll need to meet one of the following requirements with the bank:

  • Have at least $75,000 between your deposits and investments.
  • Have at least $5,000 in total direct deposits per month.
  • Have a mortgage loan with an original loan amount of $500,000 or higher.

How to get started

You can’t apply for an HSBC HELOC online, but you can start the process through the bank’s website by providing some information about yourself. More specifically, you’ll share your name, contact information, desired loan amount and purpose, ZIP code and when you’re planning to apply.

Once you submit this information, an HSBC mortgage consultant will reach out to you to continue the process. If you have questions about the bank’s HELOC, you can call and speak with a representative at 855-527-8400. Representatives are available Monday through Friday from 8 a.m. to 8 p.m. ET and Saturday from 8 a.m. to 5 p.m. ET. You can also utilize the bank’s live chat feature.

You’ll need the following information on hand to share with the mortgage consultant:

  • Social Security number or tax identification number.
  • Date of birth.
  • Email address.
  • Current address, including length at residence
  • Monthly mortgage/rent payment amount.
  • Annual income, employment information and other income sources.
  • Property information, including address, purchase date and price, estimated value, mortgage holder, outstanding balance, monthly payment, taxes, insurance and all names on the deed.

Before you apply for a HELOC with HSBC, take some time to shop around for home equity options from other lenders as well. While this process can take time, it can help you compare features and terms and ensure that you get the best deal that you qualify for.

How Bankrate rates HSBC

Bankrate Score 4.0 Scoring factors
Availability 3.0 Many details about availability are not available
Affordability 4.8 Low minimum APR and low 12-month intro APR
Customer experience 4.3 Only partially online application, Mon-Sat customer service


To create our Bankrate Scores, we evaluated lenders based on availability, affordability and customer experience. Availability was assessed based on the minimum loan amount required, time to approval, days to close, minimum draw requirements, minimum credit score requirements and loan types offered. Affordability was assessed based on minimum APR, discounts and promotions offered and associated fees. Customer experience was assessed based on online application and account availability, customer support, auto payment availability and mobile app availability and ratings.

Editorial disclosure: All reviews are prepared by staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

Written by
Raija Haughn
Raija Haughn is an associate writer for specializing in personal and home equity loans. She is passionate about helping people make financial decisions that will benefit them long term.