HSBC Mortgage Rates Review: Today’s Best Analysis

Established in 1865 to finance trade between Europe and Asia, HSBC is now one of the world’s largest banking and financial institutions.

HSBC Bank USA is an American subsidiary of the UK-based HSBC, which is headquartered in London. As such, HSBC can work with both domestic and international borrowers looking to purchase or refinance U.S. properties.

HSBC Mortgage Facts

• Large variety of loan options, from conforming fixed-rate and adjustable-rate mortgages to VA and FHA loans and exclusive HSBC options
• Convenient online mortgage account management with 24-hour Personal Internet Banking
• Online loan calculators help borrowers predict rates, payments, and closing costs
• CommunityWorks® program available in certain states for an affordable, low down payment option
• The SONYMA mortgage program helps first-time home buyers in New York and New Jersey secure affordable mortgage financing
• HSBC First Home Club is a matched savings program that offers qualified borrowers assistance with down payments and closing costs

Overall

Serving more than 38 billion customers around the world since 1865, HSBC is a prominent financial services provider in the industry.

HSBC mortgage rates, programs, and qualifications are relatively comparable to industry standards, although some of their best mortgage rates are reserved for those in specific locations, especially the New York area.

The lender does offer a full range of home loan products, including low down payment options, so borrowers in the right locations can undoubtedly benefit from HSBC’s offerings.

While an established company, HSBC does have negative customer reviews, which may lead potential borrowers to choose a different lender.

Current Mortgage Rates

HSBC Loan Specifics

HSBC provides a wide selection of mortgage and refinancing options, serving a varied audience of home buyers depending on their financial situation and eligibility.

However, some of the lender’s special loan offers are limited to specific geographic areas, which means property location may determine how well HSBC can accommodate borrowers.

HSBC Fixed-Rate Loans

This mortgage option guarantees that interest rates will remain the same, even if the rate fluctuates. Fixed-rate mortgages are good options for borrowers looking to budget for stable monthly payments. HSBC offers competitive rates and 3 percent minimum down payments for 15- and 30-year fixed-rate mortgages.

HSBC Adjustable Rate Loans

An adjustable rate mortgage (ARM) has a lower interest for an initial period but then adjusts to financial market rates for the remainder of the loan term.

ARM mortgages are usually the best option for borrowers who don’t plan to stay in their current home for an extended period, or for those who can afford to pay off the loan quickly. Standard options are 3/1 and 5/1 ARMs, which means the interest rate is fixed for the first three or five years, respectively. HSBC offers 5/1, 7/1, and 10/1 options with competitive rates.

HSBC Premier Deluxe Mortgages

This option is ideal for borrowers planning to purchase a new home or refinance an existing mortgage who can put down at least 20 percent and have a FICO score of 700 or above. Features include large loan amounts, HSBC’s best rates, and up to $1,500 in closing cost credit. There are also fixed-rate and ARM options available.

HSBC Advance Deluxe Mortgages

This option is similar to the Premier, but with added flexibility. Features include large loan amounts, HSBC’s preferred rates, and options to reduce closing costs. There are fixed-rate and ARM options available.

HSBC FHA Mortgage Loans

These government-insured loans through the Federal Housing Administration (FHA) are affordable mortgage options for first-time or self-employed home buyers as well as those with less than a 20 percent down payment, low credit score, or limited employment history. HSBC offers FHA loans with low down payments and closing cost options.

HSBC VA Loans

Insured by the U.S. Government’s Department of Veterans Affairs (VA), these loans are reserved for credit-worthy active duty service members, honorably discharged veterans, and military spouses. HSBC offers these borrowers VA loans with 0 percent down payment required and gift funds towards closing costs.

HSBC Community Works® Program

HSBC offers up to $7,000 in closing cost assistance and only 3 percent down payments for qualifying borrowers in D.C. and specific counties in California, Connecticut, Delaware, Florida, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington.

HSBC SONYMA Mortgage

These State of New York Mortgage Agency loans offer first-time homebuyers in the state an affordable mortgage plan, with only a 3 percent down payment required for one- and two-unit properties. 

HSBC First Home Club

This HSBC-exclusive matched savings program is available for qualifying borrowers purchasing their first property in New York or New Jersey. The lender will match $4 to every $1 saved by the homebuyer, capping at $7,500. The buyer can then apply those grant funds to a down payment and closing costs.

HSBC Rate/Term Refinance Loan

This refinance option allows homeowners to pay off their existing mortgage with the new closing costs and mortgage amount. HSBC offers this refinance program for borrowers interested in reducing interest rates or loan terms.

HSBC Cash Out Refinance Loan

Some of the lender’s refinance programs include cash out options, which means borrowers can turn their current home equity into cash.

HSBC Mortgage Customer Experience

HSBC provides online calculators to help customers estimate how much they qualify to borrow, as well as expected rates and closing costs. However, to be pre-approved for a mortgage, borrowers must either call a Home Loan Consultant, fill out an information form to have an HSBC representative contact them, or visit a branch to speak with a Mortgage Consultant.

Borrowers will need to provide documentation such as a government-issued ID, recent W2 forms, federal tax returns, and bank statements. Once they have a mortgage with HSBC, there are also online tools to help borrowers manage their loan.

While help is just a phone call away, HSBC customers don’t always give this lender shining reviews. HSBC North American Holdings, Inc. made it on the Consumer Financial Bureau Monthly Complaint Report list of most-complained about mortgage companies, with an average of 44.7 complaints over three months.

Added to that, HSBC had the highest rate of untimely responses to such complaints during the observed period. The lender also received several poor online reviews on various platforms.

Customers often cite poor customer service, online issues, and inefficient communication as reasons for negative feedback. While the U.S. Department of Justice eventually lifted its criminal charges, HSBC was recently involved in money laundering scandals that harmed the lender’s reputation and may have also contributed to turning customers away.

HSBC Lender Reputation

HSBC is a banking and financial services provider that has been serving North America for over 140 years. HSBC Bank USA National Association has a National Mortgage Licensing System and Registry ID number of 399799. Listed separately, HSBC Mortgage Services Inc. has an ID number of 2510.

HSBC Bank USA, N.A. is not BBB accredited because the company failed to respond to the 139 customer complaints filed against the business. The company has a Trustpilot rating of 1.3/10 stars, which is quite low.

While the global company has received several awards and recognition in the past year, many of these honors were granted for their dealings in Europe and Asia. As an Equal Housing Lender, HSBC is committed to upholding non-discriminatory practices.

• Information collected on November 14, 2018

HSBC Mortgage Qualifications

HSBC credit score minimums vary, but applicants with a credit score of 700 or above shouldn’t have a problem obtaining a loan, especially when applying for the Premier or Advance Deluxe Rates. Together with an easier approval process, higher credit scores result in more competitive rates.

Credit score	Quality	Ease of approval
760+	Excellent	Easy
700-759	Good	Somewhat easy
621-699	Fair	Moderate
620 and below	Poor	Somewhat difficult
n/a	No credit score	Difficult

Down payment minimums also vary by loan type, but, in general, the lender follows the industry standard of 20 percent down. However, HSBC does accept 10 percent down with private mortgage insurance on some loans.

Additionally, fixed mortgages have a 3 percent minimum down payment, and ARM mortgages have a 5 percent minimum. VA, FHA, and other specialty mortgages also have low down payment options. The lender also offers family-assisted and gift fund options for covering down payments and closing costs.

HSBC Phone Number & Additional Details

• Homepage URL: http://bit.ly/1W9VsXn
• Company Phone: 1-866-435-7085 (for mortgages)
• Headquarters Address: HSBC USA, 452 Fifth Avenue, New York City, NY, 10018
• States Serviced: All states except West Virginia, Alaska, and Rhode Island. Mortgage offices are only in California, Connecticut, D.C., Florida, Maryland, New Jersey, New York, Pennsylvania, Virginia, and Washington.

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