On 31 July 2026, HSBC announced that it had agreed to sell its Australian home and personal loan portfolio to Blackstone, subject to regulatory approval. The portfolio was worth approximately $36 billion as at 31 March 2026.
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.
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.
What is changing at HSBC?
HSBC is closing its Australian retail banking business, but it is not leaving Australia entirely.
- 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
Before switching, compare the new loan with what you have now, including switching fees and any fixed-rate break cost.
We’ll check whether switching would leave you better off after the costs.
Our refinancing guide explains the steps and costs to compare before you switch.
What should HSBC customers do now?
- Keep making repaymentsKeep making repayments as normal.
- Read HSBC’s communicationsRead every communication from HSBC about your loan and linked retail accounts.
- Check your loan detailsCheck your current interest rate, loan balance, fees, offset balance and fixed-rate expiry date.
- Decide whether the loan still fitsDecide whether the loan still fits your plans for the next 2 to 3 years.
- Compare before switchingIf you are considering a switch, compare the full cost and features before lodging an application.
Keep using your loan normally and follow any instructions HSBC sends you. HSBC or Pepper Money will contact you if you need to take action before the transfer.
Experience and sources
How this guide was checked
This guide draws on HSBC’s sale announcement and customer notices, Pepper Money’s transition guidance and our experience helping HSBC borrowers compare their options. We’ll check the latest transition information and your existing loan terms before recommending a change.
Joshua has worked in mortgage broking since 2011 and holds Diploma and Certificate IV qualifications in finance and mortgage broking. See Joshua’s experience, qualifications and published work.
Sources
- MoneySmart home loan guidance
- HSBC Australia announcement of the home-loan book sale (31 July 2026)
- HSBC Australia customer notices
- Pepper Money transition guidance for former HSBC customers
- Hunter Galloway lender-panel policy notes
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HSBC home loan FAQs
Our Brisbane mortgage brokers can review your existing HSBC loan and compare the cost of staying or switching.
Want a hand reviewing your HSBC home loan?
We can check your rate, repayments and features against HSBC and other workable lenders before the transfer.
or call 1300 088 065
Hunter Galloway Finance Pty Ltd is Credit Representative 476903, authorised under Australian Credit Licence 389328.
