HSBC Bank Mortgage Review 2024

HSBC Bank overview

HSBC Bank is one of the biggest financial institutions in the world, established in 1865 and offering services including banking, investing and mortgages. In the U.S., the bank is incorporated in Maryland and maintains offices in some major hubs, including New York (where it’s headquartered) and Washington, D.C. While HSBC has been downsizing for several years now, it continues to offer mortgages, with an emphasis on catering to international investors along with first-time homebuyers.

Pros and cons of HSBC Bank

How Bankrate scored HSBC Bank

• Affordability: HSBC Bank’s mortgage rates are just slightly below Bankrate’s averages (as of this review), so you might be able to find better deals elsewhere. The bank’s lowest rates are reserved for those with a credit score of 740 or higher.
  

• Availability: HSBC Bank is available to borrowers in the U.S. and other countries, but appears to focus much of its business on real estate investors, offering a bevy of jumbo loans and creative financing for all-cash purchases.

• Borrower experience: You can start the lending process easily through HSBC’s website, but you’ll need to consult with a loan officer for details regarding your specific mortgage.

Affordability: 6.8/10

HSBC Bank’s mortgage rates are in line with Bankrate’s averages (as of this review), so shop around to see if there are other lower-cost banks or lenders out there. The bank displays rates on its website, but the figures shown are only for borrowers with excellent credit and based in certain counties in New York. For rates in any other location, you’ll need to contact the bank. You can also request a custom rate quote through the bank’s site.

The bank isn’t as forthcoming about fees, but it does advertise credits on some jumbo products, which can save you anywhere from $250 to $1,500 in closing costs, depending on your relationship and balance with the bank.

Availability: 10/10

HSBC Bank lends to borrowers across the U.S. and abroad, with a range of financing options including conventional and jumbo products and some low-down payment programs. In general, for a conventional loan with this lender, you’ll need to keep your debt-to-income (DTI) ratio to no more than 36 percent. If you’re a homebuyer outside the U.S., you’ll need to provide additional documentation, as well: a valid U.S. visa and proof of at least two years’ employment and residency.

Borrower experience: 8.3/10

HSBC Bank is a global organization with millions of customers. For its U.S. operations, the Better Business Bureau gives it an A- rating. In the past, the bank has weathered controversy for a lack of anti-money laundering protections.

If you’d like to obtain a mortgage with HSBC, you can start by getting prequalified online. (For the bank, “prequalification” and “preapproval” appear to refer to the same thing: a letter that indicates you’re likely to be approved for financing.) Once you close your loan, you can use the HSBC app to conveniently manage mortgage payments along with banking services.

How to apply for a mortgage with HSBC Bank

You can apply for a mortgage with HSBC Bank in person at a branch location, online or by phone at 844-472-2684 (844-HSBC-MTG). Its loan officers are available for in-person consultations in California, Florida, New Jersey, New York, Virginia and Washington. Here are some tips to prepare for the process:

1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.

2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.

3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.) 

Refinancing with HSBC Bank

HSBC Bank offers both rate-and-term and cash-out refinancing options, including for all-cash homebuyers and those who don’t want to (or can’t) pay closing costs upfront. You can find some current refinance rates on the bank’s website, but you’ll need to contact a loan officer for specifics.

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability. Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%

  • Availability. Loan products - 50%; licensing - 40%; credit score - 10%

  • Borrower experience. Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.