In a shock announcement for HSBC mortgage holders, HSBC has announced that it will be exiting the New Zealand market.
HSBC actively marketed itself as a bank offering discounted rates to what they determined to be “premium clients” attracting people with good incomes and strong deposits. If that is you, I expect you are not feeling treated like a premium customer right now.
Many of our clients fit this profile and are high earning professionals who would rather have a personal touch and someone who knows their name and remembers who they are when they call. This is what we do and have worked hard to obtain the trust of many people just like you.
So what exactly have HSBC decided?
New Applications
From 13 June 2023 HSBC stopped accepting new home loan applications (including top up requests for existing loans).
Existing Applications
HSBC have advised that any applications submitted prior to 13 June 2023 that had received a formal letter of offer or pre-approval letter would be honoured.
Current Home Loan Customers
HSBC have confirmed that existing HSBC home loan customers will be unable to top up their loan or make changes to existing interest-only terms. This means these customers will remain with those same terms.
Customers with a fixed rate home loan maturing before 13 September 2023 are going to be offered a further fixed rate term for a maximum period of 6 months, to allow time to find another service provider. Loans still with HSBC after this 6 month fixed term period will be switched to a floating rate.
Those customers who have home loans maturing after 13 September 2023 will be switched to a floating rate when their home loan matures.
Are you affected by these changes?
If you are a HSBC home loan customer I imagine this is a bit of a shock and you will be trying to understand the impacts and options available to you.
And you are facing applying for a mortgage when stress tests are at a 5 year high. We can help you navigate the process and advise you of which options are best for your situation.
If you’d like to discuss how these changes could impact you, contact us today to get expert advice on your situation and find out what options are available to you.
