Earlier this month HSBC announced that it will be closing its wealth and personal banking business section here in New Zealand. While this might sound daunting for those with mortgages through the bank, the wind down process will not be immediate and instead will be happening over several years.
Let’s take a look at how it might affect HSBC customers or those looking to take out new loans.
For those with new lending, HSBC will no longer accept new home loan applications. This also includes top-ups to existing loans for things like renovations etc. If you applied before June 13th and received a formal letter of offer or pre-approval letter, then your loan will be honoured. Otherwise applications are no longer accepted.
For those with existing home loans, it’s a good idea to start talking with a mortgage advisor about your options. If you have an existing home loan with a fixed-rate maturing before 13th September, 2023 then you will be offered a maximum of a 6 month fixed rate term, which will give you time to apply for finance somewhere else.
If your fixed rate matures after 13th September, it will automatically move over to their current floating rate at the time. Again, this allows you time to refinance with another mortgage provider.
HSBC will also be closing down their savings accounts and debit cards. You are no longer able to apply for a new savings account or debit card. Their debit card functionality will stop come 30th November, 2023, so those with these cards will need to find a new provider. Personal overdrafts and revolving credit have also been stopped, with you unable to apply for these services any longer. For those with existing accounts, they will be honoured until the maturity date of the final term loan. Again, HSBC recommends finding another provider sooner rather than later.
So what’s next for HSBC customers? We encourage you to get in touch and we can provide you with the options for refinancing with another lender. We have plenty of options available, and can find the one that suits your needs best.
Contact our local mortgage advisors on 0800 005 676
Image source: interest.co.nz