HSBC - Home Value Loan

The target market for this product are customers who are likely to have the following objectives, needs and financial situation.

Objectives

• to purchase residential property
• to re-finance an existing home loan in respect of a residential property
• to access equity built up in an existing residential property
• to consolidate debts

Needs

• to take advantage of potential future interest rate decreases earlier than if the rate were fixed
• to reduce interest payable by making additional repayments
• the ability to manage variable and unpredictable income and/or expenses
• the ability to minimize interest paid over the life of the loan
• the ability to build up equity from the commencement of the loan
• the ability to repay loan sooner on account of reduced interest repayments
• to borrow minimum of $50,000 and maximum of $15 million
• a term between 1 year and 30 years

Financial situation

Consumers who satisfy each of the following:

• in any one or more of the following life stages:
  • first home buyers, subsequent home buyers or re-financers
  • owner/occupiers or investors
• are at least 18 years of age
• employed, self-employed or earning another form of income and with ongoing, regular and reliable income for the foreseeable future or an anticipated change to their income and with sufficient surplus discretionary income (after tax, living expenses and financial commitments) to make the required loan repayments
• hold a minimum 10% - 20% deposit in savings or equity in property