HSBC: 2025 Home Equity Review

HSBC Bank overview

HSBC Bank is a U.S. subsidiary of London-based HSBC Holdings plc, one of the world’s largest banking and financial services companies. Its history in the United States dates back to 1875 when it opened an office in San Francisco. Today, it serves about 400,000 customers, providing wealth and personal banking products and services, including home equity lines of credit (HELOCs) and mortgages, as well as savings and investments. 

HSBC home equity products offered

HSBC Bank offers HELOCs to select banking customers: those with U.S. Premier Relationship status (see “How to qualify,” below). The bank doesn’t offer home equity loans, although there’s an option to convert your HELOC balance to a fixed rate. (You can fix up to three balances at one time for terms of five to 20 years.)

With the HELOC, you can access a credit line of up to $500,000. You’ll start with an introductory variable APR for one year, then another (usually higher) variable APR — based on your creditworthiness, state of residence and prevailing rates — kicks in for the remainder of the draw period and repayment term. HSBC’s advertised rates apply for HELOCs secured by a primary home, a line size of $100,000–$500,000 and a total loan-to-value ratio of 60 percent or less. Rates may be higher if you don’t meet this criteria.

You’ll have two payment options: principal and interest or interest-only. With the former, you’ll pay principal and interest during both the draw and repayment terms. With the latter, you’ll make interest-only payments during the draw period (in other words, lower payments), then pay a higher amount that includes both principal and interest during the repayment term.

How Bankrate scored HSBC Bank

Affordability: 5/5 

• APR: HSBC Bank advertises an APR two almost points below Bankrate’s national average. 
• Introductory APR: HSBC has a low variable introductory rate for HELOC customers for the first 12 months. 
• Fees: You won’t pay an application fee or annual fee for an HSBC HELOC, and the bank covers the closing costs. If you close your account within the first three years, you’ll be responsible for a cancellation fee of $500 ($750 in California or Virginia), plus taxes. Notably, HSBC offers interest-rate discounts: a 0.25 percent reduction if you draw at least $25,000 at closing; and a 0.25 percent reduction if you set up automatic payments from your Premier checking account.

HSBC scores a perfect 5 out of 5 for affordability, primarily because of its highly competitive APRs and lack of fees. 

Availability: 4.5/5 

• Loan products: HSBC only offers a HELOC, but its rate-lock-in feature effectively turns it into a home equity loan.
• Footprint: HSBC operates in all 50 states. 
• Credit score: HSBC doesn’t disclose its credit score minimums, unlike many lenders. A typical minimum is around 620-40 for home equity financing, though. 
• Loan minimum: HSBC doesn’t specify a minimum for its HELOC but notes that its disclosed APRs apply to credit lines of $100,000 to $500,000.
• Draw requirement: None required, but an initial draw of $25,000 or greater at closing nets you a 0.25 percent rate discount. 

HSBC earns a 4.5 out of 5 for availability primarily because of its large footprint.

Borrower experience: 3.3/5

• Rate transparency: HSBC’s website lists its “choice” APRs, as well as its introductory APR, based on your state. It differentiates between both interest-only and principal-and-interest APRs.
• Convenience: HSBC has 17 wholesale banking offices and 21 branches in major cities like New York, Washington D.C., Miami, Los Angeles and San Francisco. 
• Customer service: HSBC offers multiple contact methods: you can reach out via phone, online form (to get a rate quote or open an account), mobile chat or mail. You can also visit one of its locations.
• Fixed-rate options: While HSBC doesn’t have a fixed-rate home equity loan, you can fix all or a portion of your HELOC during the draw period.

HSBC scores a 3.3 out of 5 for borrower experience because it doesn’t offer a traditional fixed-rate home equity loan and has limited locations.

HSBC’s reputation 

HSBC is not accredited by the Better Business Bureau, but gets an A+ rating. Out of more than 1,200 reviews, HSBC gets a ‘Bad’ rating on Trustpilot.

How to qualify for a home equity loan with HSBC

You must be or become an HSBC client – specifically, a Premier Relationship customer. That means you open a Premier checking account and:

• have at least $100,000 in total HSBC deposits and/or investment accounts; OR
• have at least $5,000 in total direct deposits to your checking account per month; OR
• maintain an HSBC-serviced U.S. residential mortgage 

HSBC Bank evaluates your credit score, debt-to-income (DTI) ratio, employment, income and property-related information to determine eligibility for a HELOC. HSBC notes that applicants with excellent credit and a total loan-to-value ratio of 60 percent on their primary home receive the best rates. 

Property insurance is required; flood insurance may be required, depending on your location.

How to apply for a home equity loan with HSBC

You can start the process through the bank’s website by providing some information online, including the expected loan amount, your time frame for the financing, your credit score and your state. A loan officer will then reach out to you to continue the process via email or on the phone. You can also create a HSBC account online. If you have questions, you can call 844-472-2684 (844-HSBC-MTG).

• Methodology

  To determine a home equity 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%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 35%; convenience - 35%; customer service - 20%; fixed-rate options - 10%

  Learn more about our methodology.