HSBC exits the home loan market

HSBC has decided to close its wealth and personal banking business in New Zealand, after conducting a strategic review and assessing what it called “the rapidly evolving commercial, regulatory and technology needs of running a sustainable retail business”.

HSBC said the wind-down process would “happen over several years in a phased manner”.

“We’re committed to supporting our customers throughout the entire wind-down process and we’ll honour our obligations under any existing agreements, formal Letters of Offer and pre-approval letters,” HSBC said in a statement.

“There will, however, be changes to our product and service offering with immediate effect,” the bank added.

 

New home loans

As of 13 June 2023, HSBC said it would no longer accept new home loan applications, including top-up requests for existing home loans.

However, HSBC said that if you submitted a new home loan or top-up application before 13 June and had received a formal Letter of Offer or pre-approval letter, it would be honoured.

 

Existing home loans

For existing home loans with a fixed-rate maturing before 13 September 2023, HSBC said it would offer a further fixed-rate term for a maximum of six months, allowing time for you to apply for finance elsewhere.

HSBC also said that if your fixed-rate matured after 13 September, your loan would move onto HSBC's floating rate on the maturity date.

“We will continue to offer variable / floating rates on home loans while you identify a new financial services provider to refinance with,” HSBC added.

 

Revolving credit facilities

HSBC also said, as of 13 June 2023, it would no longer offer new revolving credit facilities or an increase in the limit of existing facilities.

“If you have an existing revolving credit facility and you have other term loans with us, we will continue to offer these solutions until the maturity date of the final term loan,” HSBC said.

“If you’re currently using the facility or have plans to do so in the near future, please engage with an alternative financial services provider and refinance elsewhere as soon as possible. If you have an existing revolving credit facility with us and you’re not using the credit, please close this facility as soon as possible. We will provide you with sufficient notice when we’re planning to close these facilities.”

 

Savings accounts

As of 13 June 2023, HSBC said it would no longer open any new current or savings accounts. If you have a current or savings account that you’re using to service an HSBC term loan or term deposit, this account must remain open until the maturity date of the final term loan or term deposit.

HSBC said its HSBC Debit Mastercard would stop earlier than most of its other services, with 30 November 2023 being the last day for card transactions.

If you have your salary deposited into your current or savings account, or you have regular payments loaded on your account or card, HSBC recommended you contact another financial services provider about switching.

 

Personal overdrafts

Again, as of 13 June 2023, HSBC said it would no longer offer new personal overdrafts or increases to existing overdraft facilities.

“If you have an existing personal overdraft and you have other term loans with us, we will continue to offer these solutions until the maturity date of the final term loan. However, if you have an existing personal overdraft with us and you’re not using it, please close this facility as soon as possible,” HSBC said.

 

Next steps for HSBC customers

If you’re an HSBC customer, please contact me.

We can discuss how HSBC’s withdrawal will affect you and the right next steps.