For HSBC home loan customers · Updated 26 October 2026
HSBC leaving Australia: what happens to your home loan
HSBC is closing its Australian retail bank and has agreed to sell its home loan book to Blackstone, with Pepper Money set to manage the loans from the first half of 2027. Your rate, fees and repayments carry across, and you can't opt out of the transfer. A protected rate still isn't always a competitive one, so now is a good time to see how yours compares while HSBC is still your lender.
- A free review of your current HSBC loan
- Your HSBC rate compared with 100+ lenders on our panel
- Your refinance considered alongside your tax and wealth plan
- No obligation to change anything
At a glance
HSBC Home Loan Sale: Key Facts
HSBC announced it is closing its Australian retail bank and selling its home and personal loan portfolio to Blackstone.
The size of the home and personal loan portfolio being sold.
Will manage and service the loans day to day once the sale completes.
HSBC has stopped accepting applications for new retail products in Australia, including home loans.
When loans are expected to transfer, subject to regulatory approval.
Customers can't opt out of the transfer, although anyone can refinance or pay out the loan beforehand.
Sources: Pepper Money: Important update for HSBC customers, HSBC Australia FAQs, and industry reporting. Checked 26 October 2026.
What Changes and What Stays the Same
Nothing changes today. HSBC still owns and manages your loan, and it will write to you with the transfer date and anything you need to do. Here's what HSBC and Pepper Money have said so far.
Your Rate and Fees
Your interest rate, fees, discounts and repayments carry across, and you won't be moved to Pepper Money's advertised rates. There's no fee for the transfer. Variable rates can still move for the usual reasons, and once the sale completes, those decisions sit with the new owner.
Fixed Rates Ending
Fixed rates run to the end of their term. After the transfer, an expiring fixed rate reverts to a standard variable reference rate, with any existing HSBC discount still applied. A fixed rate rolling off is a natural moment to compare the market.
Your Offset Account
An HSBC offset is a separate bank account covered by the government's Financial Claims Scheme up to $250,000. Pepper Money's offset is a sub-account split within your loan, and because Pepper isn't a bank, that scheme doesn't apply. Moving your offset balance is optional and needs your consent.
Borrowing More
HSBC has stopped taking applications for new products. Requests to borrow more are assessed by HSBC before the transfer and by Pepper Money after it. If you're planning to renovate, invest or upgrade, start comparing your options early.
Stay With Pepper Money or Refinance?
There's no single right answer. For plenty of borrowers, staying on through the transfer will be perfectly fine. Our role is to put the numbers in front of you so you can decide with confidence.
Staying May Suit You If
- your rate still compares well with what's on offer today
- you're partway through a fixed term with high break costs
- you're comfortable having your loan managed by a non-bank lender
- you don't rely on a separate offset account
Refinancing May Be Worth a Look If
- you haven't compared your rate in two years or more
- your fixed rate ends in the next 12 months
- you'd like your offset savings held in a bank account
- you're planning to borrow more for a renovation, investment or upgrade
- you'd prefer your home loan to sit with a bank
Our holistic advice model
More Than a Rate Comparison
Future Wealth Partners has been providing financial advice to Australians for over 35 years. Because our lending, accounting and financial advice teams work together, your loan review can take in the bigger picture. We look at how your mortgage fits with your tax position, your cash flow and the wealth you're building for your family, so the decision you make today still makes sense in five years.
How Our Review Works
Tell Us About Your Loan
Share your balance, rate and features. If your letter from HSBC has arrived, bring that along too.
We Compare the Market
We weigh your current HSBC rate against 100+ lenders on rate, fees, features and the full cost of switching.
You Choose
Stay put through the transfer or refinance. You'll get a clear recommendation and no pressure.
We Walk With You
If you move, we manage the application, coordinate the discharge with HSBC and see it through to settlement.
The HSBC to Pepper Money Timeline
Until the sale completes, HSBC remains your lender and nothing changes. That gives you time to compare your options on your own schedule, before transfer letters and deadlines arrive.
Check Your Rate31 July 2026
HSBC announces it is closing its Australian retail bank, agrees to sell its home and personal loans to Blackstone, and stops taking new retail applications.
Over 18 months
HSBC's Australian branches close in stages, along with its other retail products.
You are here
HSBC still owns and manages your loan. A good time to compare.
Before the transfer
HSBC writes to you with the expected transfer date and any actions, including whether to move your offset balance.
First half of 2027
Loans transfer and Pepper Money takes over servicing, subject to regulatory approval.
After the transfer
Pepper Money sends a welcome pack, replacement cards where needed, and becomes your main contact.
Stay Scam-Safe During the Transfer
HSBC warns that scammers may pose as the bank during the wind-down. Be very wary of any unexpected request to move money or take urgent action. We'll never ask you to do either. If a message about the transfer doesn't feel right, call HSBC on 1300 308 008.
Your Questions Answered
What happens to my HSBC home loan now HSBC is leaving Australia?
It keeps running with HSBC, unchanged, until the sale completes. That's expected in the first half of 2027, subject to regulatory approval. Your loan will then be owned by Blackstone and managed by Pepper Money, with your rate, fees, discounts and repayments carrying across.
Who is Pepper Money?
Pepper Money is an Australian non-bank lender. It holds an Australian credit licence, is regulated by ASIC under the National Credit Code and is a member of the Australian Financial Complaints Authority. It isn't a bank, so it doesn't take deposits and isn't supervised by APRA.
Can I opt out of the transfer to Pepper Money?
No. If you still hold your HSBC loan when the sale completes, it moves to Pepper Money. The only way to avoid the transfer is to refinance or pay out the loan before it happens.
Will my interest rate go up with Pepper Money?
Not because of the transfer. Your rate, fees and discounts carry across, and you won't be moved to Pepper Money's advertised rates. A variable rate can still move for the usual reasons, such as cash rate changes, and after the transfer those decisions are made by the new owner.
What happens when my HSBC fixed rate ends?
If it ends before the transfer, HSBC will contact you with your options. If it ends after, it reverts to a standard variable reference rate, which is separate from Pepper Money's advertised variable rate, with any existing HSBC discount still applied. Either way, it's a good moment to compare.
What happens to my HSBC offset account?
Nothing for now. Pepper Money offers an offset sub-account, which is a split within your loan rather than a separate bank account. Moving your offset balance across is optional, and HSBC will ask for your consent first. Money in a Pepper offset sub-account isn't covered by the Financial Claims Scheme.
Can I refinance my HSBC home loan before the transfer?
Yes. You can refinance at any time. Your new lender books settlement, and HSBC pays out and closes the old loan. Fixed rate loans can carry break costs and discharge fees may apply, so we'll work out the full cost before you decide.
Can I borrow more on my HSBC home loan?
HSBC is no longer accepting applications for new retail products. Requests to borrow more are assessed by HSBC before the transfer and by Pepper Money after it. If you'll need extra funds soon, talk to us early so you can compare every option.
Does it cost anything to use a mortgage broker?
Our loan review is free. If you take out a new loan, the lender pays us a commission, which we disclose before you proceed. By law, we must act in your best interests when we recommend a loan.
Is this page from HSBC or Pepper Money?
No. Future Wealth Partners is independent and isn't affiliated with HSBC, Blackstone or Pepper Money.
Prepared by the Future Wealth Partners lending team. Last reviewed 26 October 2026. We update this page as HSBC and Pepper Money release new information.
Wherever you're going. We'll walk with you.
Get Clear on Your Options Before the Transfer
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Matthew Evans is a Credit Representative (503877) of LMG Broker Services Pty Ltd, Australian Credit Licence 517192.
Euan Brown is a Credit Representative (365512) of LMG Broker Services Pty Ltd, Australian Credit Licence 517192.
Rodney Bukuya is a Credit Representative (504938) of LMG Broker Services Pty Ltd, Australian Credit Licence 517192.
The information on this page is general in nature and doesn't take into account your objectives, financial situation or needs. Consider whether it's appropriate for you and seek advice before acting. Lending criteria, fees and charges apply. Information about the sale of HSBC's home loan portfolio is based on public statements by HSBC and Pepper Money as at 26 October 2026 and may change.
Future Wealth Partners is not affiliated with, endorsed by or acting for HSBC, Blackstone or Pepper Money. HSBC and Pepper Money are trade marks of their respective owners.