Important updates
for HSBC customers
Your guide to what will stay the same, what you need to do, and most important of all, what it means for you
HSBC sale of home and personal loans
HSBC has entered into an agreement to sell its home loan and personal loan portfolio, including personal credit line accounts. This sale is subject to regulatory approval. As part of this agreement, Pepper Money is expected to take over the management and servicing of these loans from the first half of 2027.
We’re working closely with HSBC to support a smooth transition and will keep you informed every step of the way.
Importantly, the interest rates, fees, discounts and repayments you have with HSBC will transfer across to Pepper Money.
HSBC sale of home and personal loans
HSBC has entered into an agreement to sell its home loan and personal loan portfolio, including personal credit line accounts. This sale is subject to regulatory approval. As part of this agreement, Pepper Money is expected to take over the management and servicing of these loans from the first half of 2027.
We’re working closely with HSBC to support a smooth transition and will keep you informed every step of the way.
Importantly, the interest rates, fees, discounts and repayments you have with HSBC will transfer across to Pepper Money.
What you need to do
There’s nothing you need to do right now. Your HSBC loans and any Premier benefits you hold will continue as they are, under your current terms and conditions.
Key things to know
What stays the same
For most customers, the way your loan works will remain largely the same. If anything is going to change in the future, we’ll let you know in advance.
- Your interest rate won’t change as a result of the transfer. You’ll remain on your HSBC loan rate at the time of transfer and won’t be moved to Pepper Money’s advertised rates.
- Variable rates may still change in the future for the usual reasons, such as changes to the official cash rate or other standard pricing adjustments.
- Your repayments will not change as a result of the transfer, unless they normally change under your existing loan terms.
- The fees and charges set out in your current loan agreement will carry over at the time of transfer.
- Any eligible discounts, including package discounts that apply to your loan, will carry over at the time of transfer.
- If you are currently receiving financial hardship support or have an existing support arrangement, this will continue.
- If redraw is available on your current Australian dollar home loan, you will continue to have access after the transfer in line with your loan terms and conditions.
- If you used a broker to apply for your loan, your broker relationship won’t change because of the transfer. You can still choose to make changes at any time.
What’s changing
From the transfer date, Pepper Money will be responsible for servicing your home loan or personal loan and will become your main point of contact. This includes managing repayments, handling general enquiries, processing loan changes, and providing ongoing day‑to‑day support.
- The lender and/or mortgagee name recorded against your loan and property security will be updated as part of the transfer process.
- After the transfer, Pepper Money, as manager and servicer of your loan, will provide details on how to manage your loan, including contact information and online access.
- If you have an offset account, Pepper Money’s offset sub-account is structured differently to a bank offset account but operates in the same way to reduce interest on your loan. More information is provided below.
- You can continue using your HSBC Debit card linked to your loan up until transfer. After the transfer, you will be issued with a Pepper Money replacement Debit card. More information will be provided closer to transfer.
About Pepper Money
We’re proud to be one of Australia’s largest non-bank lenders and listed on the Australian Securities Exchange (ASX). For over 26 years, we’ve supported customers across Australia and New Zealand with a wide range of loan options, from home and personal loans to commercial lending, self-managed super fund (SMSF) lending and asset finance.
We’re known as the home of loan options because we take a flexible, human approach to lending. We work with people in all kinds of real-life situations and focus on finding solutions that work for them.
If you’re wondering what a non-bank lender is, it is simply a lender that does not take customer deposits. Like banks, we must meet Australian consumer credit laws when providing loans.
Our performance is recognised by the market. Since January 2012, we’ve held a 'Strong' Residential Loan Servicer rating and are included on S&P’s Global Select Servicer List.
We also bring experience in managing customers through large loan portfolio transitions. This includes supporting the transfer of HSBC New Zealand home loan customers in 2023, helping ensure a smooth and consistent experience for customers.
Managing your loan after the transfer
After your loan servicing moves to Pepper Money, you’ll still be able to manage it in the same way, with access to the tools and support you need.
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Online and mobile access
Payments and direct debits
Redraw
Statements
Fixed rate loans
Interest-only loans
Non-resident customers
Financial hardship support
Important note about offset accounts
If you have a HSBC offset account linked to your home loan, you’ll have the option to access an offset sub-account option after the transfer. Pepper Money’s offset option is an offset sub-account linked to your loan, not a separate bank transaction account. It is designed to reduce the interest charged on your home loan in a similar way to your HSBC offset account.
Before any offset balance is moved, HSBC will contact you with more important information and ask for your consent. Transferring your offset balance is optional. If you choose to use Pepper Money’s offset sub-account option, HSBC and Pepper Money will explain what you need to do, when you need to do it, and what happens if you do not provide authority by the required date.
We’ll provide more detail before the transfer about how these features will work and whether you need to set anything up.
More on offset accounts
For now, there’ll be no changes to your offset account, aligned with existing terms and conditions. Before the transfer, you’ll receive more information about our Pepper Money offset sub-account which allows you to reduce the interest you pay on your loan.
The table below provides information about how our offset sub-account option compares to what you have available today with HSBC.
| Feature | HSBC Offset Account | Pepper Money Offset Sub-Account |
|---|---|---|
| The interest benefit | Your offset account or sub-account balance reduces the total balance of your loan that you pay interest on, lowering your interest costs. | |
| How can I access my funds?1 | You can access your funds at any time, subject to account terms. This includes: • Debit card linked to the account • Online and mobile transactions • BPay • Direct debits • Real-time payments • Telephone self-service • HSBC branches | You can access your funds at any time, subject to account terms. This includes: • Debit card linked to the sub-account optional • Online and mobile transactions • BPay • Direct debits • Real-time payments • Telephone self-service |
| Are the funds in my offset separate from my loan? | Yes, your offset funds sit in a separate HSBC deposit account linked to your home loan. | Yes, your funds sit in a sub-account that is structured as a separate split account within your 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. 1 Access to your offset account and offset sub-account can be changed, suspended or cancelled in line with your home loan terms. | |
What happens next?
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What happens
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HSBC continues to own and manage your home loan. HSBC will continue to contact you about your current loan.
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What you need to do
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You don’t need to do anything right now.
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What happens
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HSBC will send further written updates, including the expected transfer date and any actions required before your loan transfers.
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What you need to do
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Read the updates carefully and take any actions asked of you by HSBC.
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What happens
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Your loan transfers to Pepper Money who will manage and service your loan.
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What you need to do
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Next steps will be confirmed closer to the transfer date.
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What happens
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Pepper Money will send you a welcome pack confirming the transfer, contact details and how to manage your loan.
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What you need to do
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Contact Pepper Money for support with your home loan after transfer.
FAQs
About the transfer
The transfer is expected to take place in the first half of 2027, subject to regulatory approval. HSBC will contact you before the transfer with the confirmed date and any information you need.
Pepper Money will be the servicer of your loan and become your main point of contact after the transfer. The servicing of your loan means the day-to-day contact, account enquiries and any other ongoing help you may need to manage your loan.
We understand you may have questions about the change, however, you can’t opt-out of the transfer. If you still hold a loan at the time of transfer, it will move to Pepper Money, who will manage it from that point on.
Importantly, the interest rate, fees, discounts and repayments you have with HSBC will transfer across to Pepper Money.
If you don’t want to transfer your loan, you can choose to refinance or pay out your loan before the transfer.
Your rate, fees, discounts and repayments
Importantly, the interest rates, fees, discounts and repayments you have will transfer across to Pepper Money.
Please note that any changes to your home loan, will be in accordance with the terms of your agreement. For example, if you have a variable interest rate, HSBC may change your interest rate if the official cash rate changes before the transfer.
You won’t be moved to Pepper Money’s advertised rates.
There are no fees for transferring your home loan or personal loan to Pepper Money.
Managing your loan
The ways you access and manage your account today, such as online and mobile account management, will continue to be available with Pepper Money after the transfer, subject to your consent, and include the following features:
For eligible Australian dollar home loans
- Online and mobile account management (transactions and real-time payments)
- Debit card access to available funds
- Offset sub-account
For personal loans
- Online and mobile account management (repayments)
- Debit card access to available funds (for personal credit line)
There is no immediate action for you to take as your current direct debit and repayment arrangements remain in place.
HSBC are working closely with Pepper Money to make the transfer as seamless as possible for you. You’ll receive more information closer to the transfer.
If redraw is available on your current Australian dollar home loan, this will be available after your loan transfers to Pepper Money.
For personal credit lines, you will continue to have access to any available funds after the transfer.
You will continue to have access to an offset sub-account facility after the transfer. Pepper Money’s offset sub-account is structured as a split account within your home loan, not a separate transaction account. HSBC will contact you before any offset funds are moved to Pepper Money’s offset sub-account to provide important information and ask for your consent.
Specific loan situations
If your fixed rate ends before the transfer, HSBC will manage this under its usual processes and contact you with your options before the fixed-rate period ends.
Your fixed interest rate will continue until the end of your fixed-rate period. Pepper Money will manage your loan after the transfer and contact you closer to the end of the fixed-rate period with your options.
If you have a construction or bridging loan, HSBC and Pepper Money will provide information specific to your facility because these loans can have different drawdown, repayment or expiry arrangements.
Home loan customers may be able to apply for an increase to their home loan, subject to credit assessment and eligibility criteria. HSBC will assess additional borrowing requests before the sale and transfer. Pepper Money will be your contact for applications for loan increases after the transfer.
Get support
The teams at HSBC and Pepper Money are working together to support you through this transition. We will continue to provide updates so you know what is happening, what it means for you and whether you need to take any action.
Who to contact
Before your loan transfers: Contact HSBC for questions about your current home loan, repayments, statements, product changes or other HSBC products.
- Non-Premier customers can call 1300 308 008 (or if overseas +61 2 9005 8220)
- Premier customers can call 1300 301 168 (or if overseas +61 2 9005 8192)
- Visit the HSBC customer service page at www.hsbc.com.au/help/contact
After your loan transfers: Pepper Money will be your main point of contact for your home loan or personal loan.
Useful resources
Manage your home loan page
transition FAQs
hardship support