HSBC Mortgage

HSBC Mortgage

 4.1/5 (348 ratings)
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Written by Jennifer Schurman
Edited by Sally Jones

About HSBC Mortgage

This profile has not been claimed by the company. See reviews below to learn more or submit your own review.

HSBC (NMLS #399799) is an international banking and financial services institution that offers home loans as well as other financial products and services. As a mortgage lender, it specializes in conventional loan products, including multiple options for jumbo loans and low-down-payment loans. You can apply for a loan online, in person or by calling the company directly.

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Pros

  • Offerings include affordable loan programs
  • Competitive interest rates
  • No credit check for rate quotes
  • Loan program for noncitizens and permanent residents

Cons

  • No FHA, VA or USDA loans

Bottom Line

HSBC has a variety of conventional loan options, but it doesn’t work with many popular government-backed loan programs. Some of its affordable loan options may be appealing to first-time homebuyers, though. Also, borrowers that have existing relationships with HSBC can qualify for jumbo loans with more favorable terms.

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Rates

HSBC publishes its current starting rates for its home purchase loans, refinance loans and home equity lines of credit on its website. Just keep in mind that rates can change daily depending on economic conditions, and interest rates can also vary by borrower.

In 2021, HSBC’s average rate for home purchase loans was 0.37% lower than the national average. The company also offered lower-than-average rates in 2020 and 2019.

HSBC offers both fixed-rate and adjustable-rate mortgages (ARMs), which means you can choose between a fixed rate that won’t change over the loan term and one that fluctuates with market conditions after a fixed introductory period.

Choosing an adjustable rate may make sense if rates are currently high (the introductory period often has a low fixed rate) and you plan to refinance or sell the property in a few years. However, if you prefer to remain relatively stable, it may make sense to lock in a fixed rate with set monthly payments from the beginning. You can always refinance later if rates lower significantly.

HSBC Mortgage average home purchase rate vs. national average

YearDifference from national average
2021-0.37%
2020-0.16%
2019-0.52%
Information pulled from public Home Mortgage Disclosure Act data. Rates reflect noncommercial home purchase loans only.

Application process

To get a mortgage with HSBC, you can start the application process by requesting a rate quote online. The rate quote form will ask for information like your expected loan amount, estimated credit score and timeline. You’ll also need to provide contact information so a mortgage consultant can reach you.

The mortgage consultant will contact you and assist you through the loan application process. They may ask for specific information about your assets and income, so be prepared to provide those answers.

You can also apply directly on the company’s website, by phone or in person at a branch location. Whichever method you choose, the company requires you to have certain financial documentation, including 30 days of pay stubs and two months of bank statements.

HSBC Mortgage application features

FeaturesAvailability
Online application
Mobile document upload
Physical branches6 states
Publishes minimum rate on website
Rate lock60 days
Pre-qualification (no hard credit pull)
Certified approval letter

Loan types

HSBC specializes in conventional loans with fixed rates or adjustable rates. Its conventional loan offerings include standard options as well as:

  • Affordable loans with low down payment requirements
  • Regional mortgages only available in certain areas
  • Jumbo loans for loan amounts that exceed conforming loan limits
  • Loans for international buyers

HSBC doesn’t offer government-backed loans, but its affordable and regional loan programs may appeal to similar borrowers. HSBC markets these programs to first-time homebuyers and veterans, but they are available to anyone who qualifies.

Affordable mortgage programs like CommunityWorks, HomeReady and Home Possible allow for low down payments, and regional programs like the Homebuyer Dream Program and SONYMA (State of New York Mortgage Agency) loans can also lower costs, but these programs are only available in New York and New Jersey. Keep in mind that these interest rates may be slightly higher than with standard loans.

HSBC’s various jumbo loans have varying terms based on the extent of your current relationship with HSBC. You can potentially get an HSBC Select Mortgage even if you have no existing relationship with the company, but you’ll need combined personal deposit and investment balances of $1 million or more to qualify for an HSBC Elite Mortgage, for example.

HSBC saw 4,061 U.S. home purchase loan applications in 2021. Almost 63% (2,558) eventually closed, and about 9% (369) of applications were denied.

Loan applications for home purchases only by year

202120202019
Home purchase applications4,0613,8394,318
Home purchase loans closed2,5582,4182,527
Home purchase applications denied369310323
Home purchase preapprovals denied100
Information pulled from public Home Mortgage Disclosure Act data. Includes conventional, USDA, VA and FHA mortgages.

Refinancing

In 2021, most of the home loans HSBC originated in the U.S. were for refinancing, including both rate-and-term (31.44%) and cash-out refinances (16.4%). The remaining portion of loans, about 46%, were for home purchases.

Many borrowers chose to refinance in 2020 and 2021 to take advantage of the historically low mortgage rates. In January 2021, 30-year rates were as low as 2.65%. As rates continue to rise, fewer borrowers are expected to refinance in 2022, though.

It may still make sense to refinance if you can lock in a 1% lower rate, but keep in mind that refinancing does come with closing costs, so you’ll want to balance those fees against your potential interest savings.

Home purchase vs. refinance loans by year

202120202019
Home purchase loans45.86%36.35%50.57%
Refinance loans31.44%35.85%19.59%
Cash-out refinance16.4%19.44%17.51%
Information pulled from public Home Mortgage Disclosure Act Data. Includes conventional, USDA, VA and FHA mortgages.

HELOC and home equity loans

HSBC offers home equity lines of credit (HELOCs) but not home equity loans.

A HELOC can give you consistent access to cash over a long period of time (called the draw period). You may consider a HELOC if you anticipate recurring expenses in the near future, like paying for a child’s college tuition.

However, if you know you’ll need a large sum of cash upfront to fund something like a home improvement project, you might consider a lump-sum loan.

HSBC will cover the closing costs on HELOCs of $250,000 or less, saving you from paying fees for services like the home appraisal. Also, the company doesn’t charge annual fees on its HELOCs, but you may incur an early termination fee of $500 or more if you close your account within the first three years. HSBC also offers rate discounts for its current banking customers who set up autopay from their HSBC Premier checking accounts to make their monthly payments.

Requirements

HSBC doesn’t state all of its borrower requirements online. However, we can provide some context based on the types of loans it offers:

  • Conforming conventional loans typically require a 620 credit score and at least a 3% down payment.
  • Jumbo mortgages usually require higher credit scores (at least 680), and HSBC requires at least a 20% down payment on most jumbo loans.
  • All HSBC’s affordable and regional loan programs have unique criteria, but several advertise down payments as low as 3%. Additional requirements for these programs may include completing a course, living in a certain area or meeting income guidelines.

For other loan types, read our guides on FHA, VA and USDA loans.

Cost and fees

HSBC doesn’t list its fees online, but closing costs generally average around 2% to 5% of the loan amount. After you apply for a loan, you should receive a Loan Estimate, which will give an approximate breakdown of your expected fees and costs.

HSBC offers closing cost assistance as part of its CommunityWorks loan program. You could receive up to $5,000 towards your closing costs, but you may need to take a homebuyer education class to qualify.

There are also down payment assistance programs for buyers in specific states, like the Homebuyer Dream Program for borrowers in New York and New Jersey.

FAQ

What is HSBC Mortgage?

HSBC is a global organization that offers banking and financial services. In the U.S., it provides wealth management, banking and lending services.

Is HSBC Mortgage legit?

HSBC is an international banking and financial services organization founded in 1865. Its global businesses serve roughly 40 million customers across 63 countries and territories.

Where is HSBC Mortgage available?

HSBC has local mortgage consultants that serve 48 states nationwide, excluding Alaska and West Virginia.

HSBC Mortgage Reviews

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How do I know I can trust these reviews about HSBC Mortgage?
How do I know I can trust these reviews about HSBC Mortgage?
  • 4,133,720 reviews on ConsumerAffairs are verified.
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  • We use intelligent software that helps us maintain the integrity of reviews.
  • Our moderators read all reviews to verify quality and helpfulness.

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Page 1 Reviews 0 - 10
Rated with 1 star
Verified Reviewer
Original review: Dec. 30, 2021

Easily the worst experience of my life. The team working on my mortgage case were incredibly disorganized to the point of incompetence. Email communications were incomprehensible - riddled with typos, vague answers. I had to press for every bit of information I got and even when I did the responses were cryptic and unclear. The process was a total mess and incredibly piecemeal.

Over the course of 2 months in an attempt to get PRE-APPROVAL I was constantly told it was almost done and just to wait one more week or one more day. At the end of the day my loan was denied because THEY didn’t get in touch with building management and didn’t have information they needed for a lawsuit against the building that was disclosed from the beginning. I’ve started over with Citizens Bank and they’ve been more helpful in the few days I’ve been working with them than HSBC was the entire time I worked with them. I almost lost my apartment as a result of their incompetence. Never never again. Cannot discourage you enough from using HSBC Mortgage.

Be the first one to find this review helpful
Rated with 1 star
Verified Reviewer
Original review: Sept. 25, 2021

We're now heading into month 5 of our refinance dance with HSBC. Both of us have excellent credit, our combined income is well into 6 figures, and we have lots of money in the bank. They sent us an appraiser who lowballed our apartment's value--not low enough to tank the proposed loan, but typical of what might of a time have been called "sharp practices". The real issue so far has been the terrible communication. I understand that they have to do a financial colonoscopy on us, but we've been forthcoming and prompt; whereas, they've been largely unreachable, their written communications have been cryptic, and, when we finally get to speak to someone, they come off harried and flustered.

Coming to the end of our first rate-lock extension, we had to hound them to send us contracts for our review. Their attorneys called them three times, and the next communication from HSBC was a request for us to send them duplicate documents (the ones they got from us two months ago were supposedly out of date) along with a request for a letter attesting that no, we did not in fact own an apartment that we had rented more than a decade ago. Soon, perhaps, we will get closing documents to review, but the rate lock extension lapses in twelve days. This organization does not function well, and I am starting to worry that their loan servicing will be as disorganized as their underwriting process. Will they record our payments, or will I come how one day to a surprise foreclosure? I am thinking of walking away from this deal.

4 people found this review helpful

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    Rated with 1 star
    Verified Reviewer
    Original review: Aug. 30, 2021

    I should have taken note of the other reviews, they were not exaggerating. My first experience with HSBC mortgages was in 2013, it was the worst experience including last minute delays and an emergency overnight international flight back to the US at my cost, when HSBC suddenly realized they could not accept my attorney signing to close on my behalf after all, despite it being their suggestion in the first place when I wanted to extend closing due to a business trip. Anyway, that was all in the past. When I went to refinance this year with another bank HSBC offered to match the rate. Foolishly I accepted to stay. What a mistake.

    Despite being a premier international customer the service has been absolutely awful. It took over 3 months to close. I received conflicting emails from HSBC to the extent their advisor told me to ignore system generated emails received from HSBC. The mortgage team were switching between various email addresses and text messages meaning it was impossible to control back up of what had been said when and by whom. Every request would suddenly be a last minute emergency which had to be resolved immediately.

    I started checking in with them in advance if we were all set for the next step, and whether anything was required, so we could prepare, particularly as I was dealing with overseas assets and time zones. Repeatedly I was told nothing was required and then we would get another Friday afternoon emergency where critical documentation was suddenly required immediately from overseas when the European banks had already closed. Requests for paperwork were contradictory. Some requests made no sense. My requests for clarification on what they were asking for would just result in them continuing to repeat the same request with no explanation. I realized they often didn't know what they were asking for either, requiring me to do my own research to figure it out.

    We had to extend closing twice as HSBC would suddenly realize another document was required, or an already submitted and approved document was no longer what they needed. The fees just kept racking up and I stil don't understand how I incurred such high fees in refinancing when I believed we had initially discussed a much lower figure, but between the various erratic forms of communication I have no proof and I just wanted to get the whole experience over with.

    When I asked for clarification of the very vague final statement of costs the agent was unable to fully explain what the various sums were for. During the time it took to refinance an existing mortgage with HSBC I viewed another property, purchased it, and rented it out (not through HSBC) while HSBC were still trying to refinance this property. I highly recommend anyone to steer clear of this bank for mortgage purposes, it was an absolute nightmare and highly stressful. I should have gone with the other bank. Save yourself the stress and go elsewhere.

    2 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: July 12, 2021

    Closing document from the first and second mortgages. Most are forged. I have forensic to prove it. Including 5 mortgage that have been notarized that are not mine. Payment history from 2001 until 2014 that state that every payment made was NSF (contemporary slavery). 12% interest rate. They would not let me refinance with any other bank with their illegal practices. I could not receive a timely payoff amount for 14 years. Not one. There is so much more abuse. They entered forged documents into court. The banks have too much power to destroy mankind. The laws need to be changed.

    2 people found this review helpful
    Rated with 1 star
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    Verified Reviewer
    Original review: Nov. 10, 2020

    I am currently in the process of finalizing a mortgage with them and the overall experience has been horrific. Despite being a Premier customer both in France and in the US, I was given false informations from my initial contact (like 45 days from quote to close - we have now been at this for over 9 weeks, and it is not done), the administrative back and forth has been horribly slow (despite it being a easy mortgage - great credit rating, low amount vs value and income, etc), and my contact Stephen has been horribly unresponsive. I have been sending weekly and then daily emails to get updates and no answer. But when documents were required, it was within 24hrs. We could have anticipated all the documents requested by the underwriters, and instead Stephen has acted as a slow mailbox, often sending me duplicate requests, etc. I regret deeply using them...

    16 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Nov. 6, 2020

    We originally decided to move forward with HSBC as they were offering a cash out refinance on a 10/1 ARM. After two months to make it past approval and underwriting, they changed their minds and withdrew the approval deciding not to offer a cash out option. A complete waste of 3 months even involving opening new accounts. Would NOT recommend to anyone. Go with your local large bank - not HSBC. Clearly mortgages aren’t a major part of the business they care about.

    8 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Aug. 7, 2020

    We tried to get a mortgage through HSBC and our coordinator was Gregory **. First exchange with Gregory sounded promising but very quickly it all fell apart.

    Below is a laundry list of the many issues we had in dealing with them. Some of which pretty egregious in my mind... Gregory took off for a week long vacation without any email automatic email responses advising his clients why he is not responding. Only after I get on the phone and spent 1 hour to get someone to help us with our application.

    Poorly communicated the status of missing documents, which were almost always positioned as last-minute emergencies instead of simple requests. Their online submission process is so inefficient and impossible to track. Constantly sent spam e-mails and texts that have nothing to do with the status of our loan, many of which actually confuse loan process. They processed the $500 appraisal fee without approving the property HOA. Every document sent had to be revised 3 times over and apparently internal communication is a joke. There is no point person that can guide you through the process as Greg in the end proved to be a completely inept and incompetent. I'd read terrible reviews before using them, but I gave them the benefit of the doubt since I used HSBC many years back but apparently things have fallen apart there. DO NOT WASTE YOUR TIME WITH HSBC and Gregory **.

    16 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: July 30, 2020

    Started out promising, got the mortgage in principal certificate but went rapidly downhill. I have to chase them to find anything out! This has got to be the worst customer service I’ve experienced in a decade. Seriously blunt and unsympathetic that a house, a home is relying on their professionalism. I’ll probably lose the property. Beyond frustration right now.

    Normally I assume you get complaints ‘after the fact’ so in actual fact little if anything can be done, however my issue is current. I have applied for a mortgage Ref No. ** and initially told two weeks for a decision but I had to produce some more documentation as the upload payslips we not 100%. I did so immediately. 2 weeks became 4 weeks. After some chasing up I was emailed back to say the underwriter found another property in my name. I immediately sent the sale completion statement as evidence that the property in question was sold in June.

    Now coming into week 6 and poor communication, update, lack of acknowledgement of receipt of documents sent. I have tried is a series of emails to explain the vendor and estate agents may pull out because I keep promising ‘next week’. Too much to explain all here, you’d have to look into my case but if I would of known about this service I would have gone elsewhere. If after 6 weeks I get refused, I would be furious as I’d probably lose the property and have to start from scratch. As I said at the beginning, this is not after the fact. It’s happening now and could actually be resolved with some expedience. To be honest, I’m not holding out but the customer care has been so poor for such a big corporation. I’ve since google many similar reviews warning people away from HSBC mortgages. Anyway. If nothing else thanks for reading thus far.

    10 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Jan. 6, 2020

    If you use HSBC, you must allow months for any issues to be worked out. At first they seem to help but then fail to follow through. We closed a home equity line of credit 6 years ago and paid the required recording fee. Now that we are closing on the sale of our house, we find that they never recorded a lien release. They tried to pass off the responsibility to a related lender, but after weeks of getting nowhere with that company, they acknowledged responsibility. A branch manager tried to help, but the correct department didn’t even respond to HIM! We already missed one closing date and are on the way to missing another and possibly losing the buyer and much more.

    24 people found this review helpful
    Rated with 1 star
    Verified Reviewer
    Original review: Dec. 24, 2019

    I am a REALTOR and after my heavily advising against using HSBC my client still went with them. I have closed over 400 transactions for my clients and this was my first experience with HSBC and it was an absolute nightmare! HSBC has held their file in underwriting for a week. We've missed 3 closing dates and my buyers are now in a hotel for Christmas with all of their belongings in a moving truck locked inside a warehouse. HSBC is unresponsive, they refuse to answer questions and I can honestly say they are not only the worst mortgage company I've ever dealt with but the absolute worst company in general I have ever dealt with in my life. Please stay away from this company.

    36 people found this review helpful
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    ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page. Specific sources for this article include:
    1. Federal Financial Institutions Examination Council, “HMDA Data Publication.” Accessed August 25, 2022.
    2. Federal Reserve Bank of St. Louis, “30-Year Fixed Rate Mortgage Average in the United States.” Accessed August 25, 2022.

    HSBC Mortgage Company Information

    Company Name:
    HSBC Mortgage
    Website:
    www.us.hsbc.com