Supporting brokers through the HSBC transfer
What you need to know right now to help customers.
Three facts to anchor every customer conversation
HSBC to sell Australian loan portfolio
Pepper Money will service HSBC loans
Nothing changes today
HSBC continues to own and service the loans until transfer. The interest rates, fees, discounts and repayments customers have with HSBC will transfer across to Pepper Money and they won’t be moved to Pepper Money’s advertised interest rates.
Customers do not need to act now.
Hear from Siobhan Williams, Head of Retail Broker at Pepper Money, who talks more about the transfer to Pepper Money and what this means you for your customers.
What customers need to hear right now
No action is required
Keep using HSBC channels
More information will follow
Information for brokers
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In-flight applications
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Applications already submitted will continue to be assessed in line with HSBC policies and procedures. HSBC will no longer accept new applications.
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Pre-approvals
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Valid pre-approvals, conditional approvals and unconditional approvals will continue to be honoured, subject to HSBC lending criteria and expiry dates.
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Broker support
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Continue to work with a HSBC Partnership Manager and use the HSBC Broker Portal until transfer.
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Existing customers
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HSBC loans and Premier benefits will continue under existing arrangements.
How customers can manage their loan after the transfer
After HSBC loan servicing moves to Pepper Money, customers will still be able to manage it in the same way, with access to the tools and support they need.
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Online and mobile access
Payments and direct debits
Redraw
Statements
Fixed rate loans
Customers on a fixed-rate home loan will continue under their existing fixed-rate contract and loan terms. Their interest rate, repayment arrangements and applicable fixed-rate expiry date will transfer with the loan.
At expiry, the loan reverts to a standard variable reference rate, separate from Pepper Money’s standard variable reference rate, plus any HSBC product margin discount as detailed in the customer’s Letter of Offer (or Letter of Variation) will continue to apply after the transfer.
Interest-only loans
Non-resident customers
Financial hardship support
Offset accounts
- There are no changes to HSBC offset accounts today
- Customers with a HSBC offset account linked to their home loan will have the option to access a Pepper Money offset sub-account after transfer.
- More information will be provided before transfer, including options for transferring offset balances.
Watch the video: What is an Offset sub-account? And how does it work?
Important note about offset accounts
For now, there’ll be no changes to offset accounts, aligned with existing terms and conditions. Before the transfer, customers will receive more information about our Pepper Money offset sub-account which allows them to reduce the interest they pay on their loan.
The table below provides information about how our offset sub-account option compares to what customers have available today with HSBC.
| HSBC Offset Account | Pepper Money Offset Sub-Account | |
|---|---|---|
| The interest benefit | The offset account or sub-account balance reduces the total balance of the loan that a customer pays interest on, lowering interest costs. | |
| How can I access my funds?1 | A customer can access funds at any time, subject to account terms. This includes:
| A customer can access funds at any time, subject to account terms. This includes:
|
| Are the funds in my offset separate from my loan? | Yes – the offset funds sit in a separate HSBC deposit account linked to the home loan. | Yes – the funds sit in a sub-account that is structured as a separate split account within the loan. |
| What about my tax position? | Your offset account or sub-account balance reduces the total balance of your loan that you pay interest on, lowering your interest costs. The offset sub-account can continue to support customers using the loan for investment and tax purposes with interest deductibility retained. This is factual information and does not constitute financial or tax advice. The tax treatment of your loan (and any interest) will depend on individual circumstances. Customers are advised to seek their own tax advice. | |
| Important information | Before the transfer, you'll receive more important information, including the option to transfer your balance to a Pepper Money offset sub-account. Access to the offset account and offset sub-account can be changed, suspended or cancelled in line with your home loan terms. | |
FAQs
No. Pepper Money has advised that HSBC customers won’t move to Pepper Money’s advertised rates.
The interest rates, fees, discounts and repayment arrangements customers currently have with HSBC will transfer across to Pepper Money.
Any future changes would only occur in accordance with the customer's loan terms and conditions such as changes to the official cash rate or other standard pricing adjustments.
Customers on a fixed-rate home loan will continue under their existing fixed-rate contract and loan terms. Their interest rate, repayment arrangements and applicable fixed-rate expiry date will transfer with the loan.
At expiry, the loan reverts to a standard variable reference rate, separate from Pepper Money’s standard variable reference rate, plus any HSBC product margin discount as detailed in the customer’s Letter of Offer (or Letter of Variation) will continue to apply after the transfer.
HSBC home loan package discounts will continue under existing arrangements.
We're working closely with HSBC on future servicing arrangements and will provide more information before transfer. Customers will be notified in advance of any changes affecting home loan package benefits or discounts.
HSBC home loan Premier discounts will continue under existing arrangements.
We're working closely with HSBC on future servicing arrangements and will provide more information before transfer. Customers will be notified in advance of any changes affecting home loan Premier benefits or discounts.
HSBC will continue to accept eligible variation requests, including top-ups, until the transfer. Applications will continue to be assessed under HSBC's existing lending policies and criteria.
Yes. You can continue to contact a HSBC Partnership Manager or HSBC until the transfer is complete. Once transferred, Pepper Money’s Broker Assist team will be available to support you.
Your commissions will continue to be paid in accordance with your arrangement with your Aggregator. Your existing terms and conditions, including those relating to clawbacks, continue to apply.
In-flight purchase and refinance applications submitted to HSBC by 14 August 2026 will continue to be assessed, however no new applications past this date will be accepted. Top ups and variations will continue, and all applications will be reviewed in line with our standard policies and procedures.
Note: All home loan submissions that include valid pre-approvals, conditional approvals and unconditional approvals will be honoured, subject to HSBC lending criteria and expiry dates.
No, HSBC is no longer accepting requests for extensions.
HSBC will continue to accept variation requests, including top ups, until the transfer. This also includes changes to repayment schedules or the loan period.
No announcements have been made regarding any future loan products associated with the transfer.
Do you have a question that isn’t answered in our FAQs?
Get support
The teams at HSBC and Pepper Money are working together to support you and your customers through this transition. We’ll continue to provide updates so you know what is happening, what it means for you and your customers and whether they need to take any action.
Who to contact
Continue to contact your HSBC Partnership Manager for home loans and personal loans queries or support.
Pepper Money will be your main point of contact for home loans and personal loans.
Useful resources
information hub
Manage your home loan page
transition FAQs
This is factual information and does not constitute financial or tax advice. The tax treatment of your loan (and any interest) may depend on your individual circumstances. You should obtain independent financial or tax advice before making any decisions based on this information.
©Pepper Money Limited ABN 55 094 317 665; AFSL and Australian Credit Licence 286655 is the servicer of home loans provided by Blackstone Australia.
