HSBC has announced that it will close its retail banking business in Australia. It has agreed to sell its approximately $36 billion Australian home and personal loan portfolio to Blackstone, subject to regulatory approval.
The sale is expected to complete in the first half of 2027. Pepper Money will manage and service the loans after the transfer. Until then, HSBC remains the main contact for existing customers.
If you already have an HSBC home loan, you do not need to do anything immediately. You can stay with the loan through the transfer or review your options if your current loan no longer suits you.
HSBC Australia itself has not been bought. Blackstone has agreed to buy HSBC’s Australian home and personal loan portfolio. HSBC is winding down the rest of its Australian retail banking business while retaining its corporate and institutional banking, private banking and asset management operations in Australia.
Existing customers should keep making repayments as normal and read any updates sent by HSBC. The transfer alone is not a reason to rush into refinancing.
This page was updated in August 2026. The proposed sale remains subject to regulatory approval. See the official HSBC announcement, HSBC customer notices and Pepper Money’s guide for HSBC customers for the latest transition information.
Who is HSBC?
HSBC is not leaving Australia entirely. On 31 July 2026, it announced that it had agreed to sell its Australian home and personal loan portfolio to Blackstone and wind down the remainder of its Australian retail business.
- The portfolio had a book value of approximately $36 billion as at 31 March 2026.
- Blackstone has agreed to acquire the portfolio.
- Pepper Money will manage and service the loans after completion.
- Completion is expected in the first half of 2027, subject to regulatory approval.
- HSBC’s remaining Australian retail products will be wound down in stages over 18 months.
- HSBC will retain its corporate and institutional banking, private banking and asset management businesses in Australia.
What happens to existing HSBC home loans?
For now, nothing changes. HSBC remains responsible for your loan until the transfer is completed, and customers should continue making repayments as normal.
Pepper Money says the interest rate, repayments, fees and eligible discounts attached to your HSBC loan will carry across at the time of transfer. You will not automatically move to Pepper Money’s advertised home loan rates. Variable rates can still change for the usual reasons under your loan agreement, while fixed rates will continue until the end of the fixed-rate period.
If redraw is available on your current Australian-dollar home loan, it will continue after the transfer in line with your loan terms. Customers with an offset account will be offered a Pepper Money offset sub-account, which is structured differently from a bank deposit account. HSBC will provide more information and ask for consent before moving any offset balance.
Do HSBC customers need to refinance?
No. You do not need to refinance just because the loan is moving. Staying may make sense if your current rate, repayments and loan features still suit you.
A review may be worthwhile if:
- your rate is no longer competitive
- you want different offset or redraw features
- your fixed rate is ending soon
- you need to borrow more, restructure debt or buy another property
- your income or personal circumstances have changed
- you earn foreign income or live overseas and want to confirm which lenders will accept your situation
Any alternative still needs to be compared against your current loan after fees, switching costs and any fixed-rate break cost. Approval and available loan features will depend on the new lender’s eligibility and credit assessment.
What should HSBC customers do now?
- Keep making repayments as normal.
- Read every communication from HSBC about your loan and linked retail accounts.
- Check your current interest rate, loan balance, fees, offset balance and fixed-rate expiry date.
- Decide whether the loan still fits your plans for the next two to three years.
- If you are considering a switch, compare the full cost and features before lodging an application.
There is no need to panic or withdraw money from redraw based on the announcement alone. If HSBC or Pepper Money needs you to take action before the transfer, they will contact you directly.
Should you review your HSBC home loan?
The sale gives existing HSBC customers a sensible reason to check their loan, but not a reason to refinance blindly.
We can compare your current rate, repayments and features with the lenders on our panel. If staying with HSBC through the transfer is the better option, we will tell you that too. Book a free assessment or call 1300 088 065 to get started.
Existing HSBC customer? Compare staying through the transfer with refinancing.
