HSBC Bank Mortgage Review 2023

Breakdown of HSBC Bank overall score

• Affordability: HSBC Bank’s mortgage rates are just slightly below Bankrate’s averages, so you might be able to find better deals elsewhere. The bank’s lowest rates are reserved for those with a credit score of 740 or higher.

• Availability: HSBC Bank is available to borrowers in the U.S. and other countries, but appears to focus much of its business on real estate investors, offering a bevy of jumbo loans and creative financing for all-cash purchases.

• Borrower experience: You can start the lending process easily through HSBC’s website, but you’ll need to consult with a loan officer for details regarding your specific mortgage.

• Methodology

  Bankrate’s expert editorial team collects lender information through a variety of methods. We contact lenders directly, and we also turn to regulatory filings and to assessments by third parties. Our research takes into account three main factors – affordability, availability and borrower experience.

  Bankrate’s reporters and editors have decades of experience covering the mortgage industry. They’re skilled at gathering information through interviews and by scouring regulatory filings. Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Here’s how we assess each of the categories:

  • Affordability. Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) a lender’s lowest advertised annual percentage rate (APR) based on Bankrate’s sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors and 2) established-customer discounts or incentive pricing, when applicable.
  • Availability. Another factor is how quickly your loan application will be approved, and how many loan programs the lender offers. So we evaluate approval and closing timelines and diversity of loan products.
  • Customer experience. Finally, we delve into what it’s like to deal with the lender as a consumer. We look at the lender’s application process and availability of customer service support. We also consider the results of J.D. Power’s 2022 Mortgage Origination Satisfaction Survey.

  Bankrate’s editorial team confirms the accuracy of data at the time of publication. Our team is dedicated to maintaining the timeliness of information – the mortgage industry is changing constantly, so we regularly revisit these reviews to update them.

  Bankrate’s methodology page spells out our rating process in greater detail.

Affordability: 5/5

HSBC Bank’s mortgage rates are in line with Bankrate’s averages, so it’s wise to shop around to see if there are other lower-cost banks or lenders out there. The bank displays rates on its website, but the figures shown are only for borrowers with excellent credit and based in certain counties in New York. For rates in any other location, you’ll need to contact the bank. You can also request a custom rate quote through the bank’s site.

The bank isn’t as forthcoming about fees, but it does advertise credits on some jumbo products, which can save you anywhere from $250 to $1,500 in closing costs, depending on your relationship and balance with the bank.

Availability: 4/5

HSBC Bank lends to borrowers across the U.S. and abroad, with a range of financing options including conventional and jumbo products and some low-down payment programs.In general, for a conventional loan with this lender, you’ll need to keep your debt-to-income (DTI) ratio to no more than 36 percent. If you’re a homebuyer outside the U.S., you’ll need to provide additional documentation, as well: a valid U.S. visa and proof of at least two years’ employment and residency.

Borrower experience: 4.3/5

HSBC Bank is a global organization with millions of customers. For its U.S. operations, the Better Business Bureau gives it a B rating. In the past, the bank has weathered controversy for a lack of anti-money laundering protections.

If you’d like to obtain a mortgage with HSBC, you can start by getting prequalified online. (For the bank, “prequalification” and “preapproval” appear to refer to the same thing: a letter that indicates you’re likely to be approved for financing.)

You can also contact the bank at 844-472-2684 (844-HSBC-MTG) or visit a branch. HSBC loan officers are available for in-person consultations in California, Florida, New Jersey, New York, Virginia and Washington.

In addition, once you close your loan, you can use the HSBC app to conveniently manage mortgage payments along with banking services.

Refinancing with HSBC Bank

HSBC Bank offers rate-and-term and cash-out refinancing, including options for all-cash homebuyers and those who don’t want to (or can’t) pay closing costs upfront. You can find some current refinance rates on the bank’s website, but you’ll need to contact a loan officer for specifics.

Alternatives to HSBC Bank

• Bank of America mortgage review – Another big financial institution with low-down payment programs, but many more branch locations
• Freedom Mortgage review – A major mortgage provider specializing in FHA and VA loans
• Lower mortgage review – A digital lender with flat fees, but not available in every state