HSBC named Money's Home Lender of the Year
The 2022 winner in the Home Lender of the Year category for major banks is HSBC - no mean feat considering the strong competition there's been in the home loan space over the past year.
While the tides are starting to turn now, we've seen mortgage rates - particularly variable rates - reach some of the lowest points in years.
Amid this, HSBC has not only managed to offer a range of relatively low-cost home loans compared with its major bank competitors, but it has also kept pace with many non-bank and digital lenders, which have typically provided the sharpest options around.
HSBC is offering variable rates starting from as low as 2.52%pa for loan-to-value ratios (LVRs)below 70% and fixed rates from 4.07%pa on a one-year term for LVRs below 80%.
"We've always aimed to be competitive on interest rates - that's been one of our key principles," says HSBC's head of secured lending, Rory McCotter.
"Lower funding costs last year played a part in helping drive some of those lower interest rates as well. But we wanted to make sure that we were competitive on rates to go along with the strong service proposition that we've got."
In addition to attracting mortgage holders by keeping loan costs low, HSBC has also found success tapping into the booming refinancing market.
Figures from the Australian Bureau of Statistics show that in the year to March 2022, roughly $190 billion worth of loans were refinanced from one lender to another - one of the highest 12-month amounts on record. As McCotter notes, the bank has been aided on the refinancing front by its $3288 cashback incentive.
"A good cashback offer combined with good interest rates has seen us really gain some traction, particularly in the refinance market. I think that's been helped by a lot of customers becoming a bit savvier around their finances as well - so shopping around for better rates and cashback offers."
HSBC is aware of the need to help customers adjust to a new world of climbing interest rates, though.
"For us it's about communication between ourselves and customers, as well as on the broker side," says McCotter.
"We're cognisant of the changing interest rate environment, so we encourage customers to have a conversation about the rise in interest rates and speak to either a relationship manager or their broker."
AMP has placed second this year after performing particularly well with its longer-term fixed-rate home loans.
The bank is currently offering three-year fixed rates from 4.79%pa and five-year rates from 5.04%pa for LVRs below 60%.
Third-placed ING fared well across the home lending space, though its basic home loans were a strong point. The online bank is currently offering variables rates starting at 2.34%pa for LVRs below 80%.
Get stories like this in our newsletters.