HSBC home loans moving to Pepper Money
HSBC is leaving Australian retail banking and has sold its home and personal loan book to US investment firm Blackstone. Pepper Money will manage those loans from the first half of 2027, subject to regulatory approval.
Your interest rate, fees, discounts and repayments transfer across unchanged. The bigger shift is that your loan will be serviced by a non-bank lender, which changes how offset accounts work. Here’s what that means for you, what to do now, and when it’s worth speaking to a mortgage broker.
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At a glance
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What’s happening with HSBC and Pepper Money?
On 31 July 2026, HSBC announced it’s closing its Australian retail bank. It agreed to sell its Australian home loan, personal loan and personal credit line portfolio, worth about $36 billion, to Blackstone. Blackstone has called it the largest home loan portfolio deal in the world.
Blackstone will own the loans, but Pepper Money will be your day-to-day contact. Pepper Money is an ASX-listed non-bank lender with more than 26 years in Australia. It managed the move of HSBC New Zealand’s home loan customers in 2023.
HSBC has stopped taking new home loan, personal loan and credit card applications. It’s closing its 19 branches and winding down its remaining retail products, including transaction, savings and term deposit accounts and credit cards, over around 18 months.
This is different from Suncorp Bank’s move to ANZ, where customers stay with a bank because ANZ already owns Suncorp Bank.
How many HSBC customers are affected?
About 120,000 customer accounts are moving to Pepper Money, covering home loans, personal loans and personal credit lines. The portfolio has a total book value of around $36 billion.
HSBC loans going to Pepper Money key dates
| Date | Event |
| About 18 months after the sale | All Suncorp Bank customers moved to ANZ; Suncorp Bank brand retired |
| First half of 2027 (expected) | Loans transfer to Pepper Money, subject to regulatory approval |
| Before the transfer | HSBC writes with your confirmed transfer date, any actions needed, and a request for consent to move offset funds |
| 31 July 2026 | HSBC announces the sale and its exit from retail banking; new retail applications stop |
Will your home loan stay the same?
For most customers, your loan will work in much the same way. You won’t be switched to a Pepper Money product.
| Feature | What happens after the transfer to Pepper Money |
| Interest rate | Stays the same. Variable rates can still change for the usual reasons, like cash rate moves. |
| Repayments | Unchanged by the transfer. They can still change for the usual reasons, such as a variable rate change or your fixed or interest-only period ending. |
| Fees and discounts | Fees in your loan agreement and eligible discounts, including package discounts, carry over. |
| Fixed-rate loans | Your rate and expiry date carry over. At expiry, you revert to a standard variable reference rate (separate from Pepper Money’s own) plus any HSBC margin discount in your letter of offer. |
| Fixed rate ending before the transfer | HSBC contacts you with options under its usual process. |
| Interest-only loans | Continue under your current terms. Extensions are subject to credit assessment. |
| Redraw | Continues on Australian dollar home loans where it’s available now. Credit lines keep access to available funds. |
| Offset account | Can’t move to Pepper Money as it is. HSBC will ask whether you want your offset savings moved into a Pepper Money offset sub-account inside your loan. If you say no, you’ll need to keep that money with another bank, as HSBC is closing its savings and everyday accounts. |
| Debit card | Use your HSBC card until the transfer, then Pepper Money sends a replacement. |
| Online access | Moves to Pepper Money’s online portal and app. You’ll get new login details. |
| Statements | Half-yearly from Pepper Money. It can also help you access past statements. |
| Direct debits | Stay in place. HSBC may contact you if your repayments come from an HSBC account. |
| Hardship arrangements | Continue and are honoured by Pepper Money. |
| Construction or bridging loans | HSBC and Pepper Money will contact you with details specific to your loan. |
| Property title | The lender or mortgagee name on your loan and property security will be updated. |
What changes when your lender isn’t a bank
HSBC is a bank supervised by APRA. Pepper Money is a non-bank lender: it lends money but doesn’t take deposits, so it isn’t APRA supervised. Both hold an Australian Credit Licence and are regulated by ASIC.
The most practical difference is your offset account:
| HSBC offset account | Pepper Money offset sub-account | |
| How it works | Separate bank deposit account linked to your loan | Sub-account inside your loan |
| Reduces your interest? | Yes | Yes |
| Government deposit guarantee (Financial Claims Scheme) | Covered up to $250,000 | Doesn’t apply. If Pepper Money failed, your balance would be set off against your loan. |
| Can you hold more than you owe? | Yes | No |
| Investment loan interest deductibility | Retained | Pepper Money says it’s retained (get your own tax advice) |
Moving your offset balance is optional. If you don’t want your savings inside your loan, you can keep them in a bank account elsewhere instead.
What you need to do now
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Keep making repayments as normal. HSBC still manages your loan until the transfer.
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Make sure HSBC has your current contact details, and read every update carefully.
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Decide what to do with your offset. Consent to the Pepper Money sub-account, or move your savings to a bank offset or savings account elsewhere.
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Open a new everyday bank account if your salary, savings or repayments run through HSBC. Those accounts are being closed.
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Check your fixed rate expiry date and what your revert rate will be.
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Download your statements for tax and records while you still have HSBC online access.
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Compare your loan against the market. You’re no longer able to negotiate a better deal with HSBC by switching products.
How HSBC and Pepper Money will contact you
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Now: HSBC owns and manages your loan. Contact HSBC through its app, internet banking or website.
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Before the transfer: HSBC writes with the confirmed transfer date, any actions needed, and a request for consent to move offset funds.
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At the transfer: your loan moves to Pepper Money.
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After the transfer: Pepper Money sends a welcome pack with contact details, how to register for its online portal, and your replacement debit card.
Your rights during the transfer
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You can’t opt out, but you can refinance or pay out your loan before the transfer.Your rate, fees, discounts and repayments are protected. Any future changes must follow your existing loan agreement.
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There’s no fee for the transfer itself.
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HSBC can’t move your offset savings into your loan without your permission.
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Consumer credit laws still apply. Your loan stays regulated under the National Credit Code, with responsible lending, hardship and privacy obligations.
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Hardship help continues. Existing arrangements carry over. Contact HSBC before the transfer or Pepper Money after if you’re struggling.
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You can complain. Raise it with HSBC or Pepper Money first. If it isn’t resolved, you can go to the Australian Financial Complaints Authority (AFCA) for free.
Should you refinance before your loan moves to Pepper Money?
You don’t have to. If your rate is competitive and you’re happy with an offset sub-account, staying put may be the simplest option. But with no way to opt out, now is the time to check whether your loan still suits you.
It’s worth speaking to a mortgage broker if:
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you want your offset savings held with a bank and covered by the Financial Claims Scheme
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you’d prefer your loan and everyday banking in one place
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your rate is higher than what other lenders are offering new customers
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your fixed rate ends soon and you want to compare before it reverts
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you need to borrow more, restructure or consolidate debt
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you have a construction or bridging loan with drawdowns still to come
If you’re a non-resident or expat borrower, refinancing options are narrower, so get specialist advice before deciding.
If you do refinance, start well ahead of the transfer date, as it can take several weeks. Check for break costs on fixed rate loans and any discharge fees. Remember that refinancing means a new credit assessment, so if your circumstances have changed, staying may be the better option.
HSBC loans managed by Pepper Money FAQs
Is HSBC leaving Australia?
HSBC is closing its Australian retail bank, including home loans, everyday accounts and credit cards. Its corporate, private banking and asset management businesses are staying.
Who owns my HSBC home loan now?
HSBC owns it until the sale completes. After that, Blackstone owns the loan and Pepper Money manages it on Blackstone’s behalf.
When will my HSBC home loan move to Pepper Money?
In the first half of 2027, subject to regulatory approval. HSBC will write to you with the confirmed date.
Will my interest rate change when my loan moves to Pepper Money?
Not because of the transfer. Your rate, fees, discounts and repayments carry across, and you won’t be moved to Pepper Money’s advertised rates. Variable rates can still change in line with your loan terms.
Can I opt out of the transfer to Pepper Money?
No. If you don’t want your loan to move, you’ll need to refinance or pay it out before the transfer.
Is there a fee to transfer my loan?
No. HSBC and Pepper Money have confirmed there’s no fee for the transfer.
What happens to my HSBC offset account?
Before the transfer, HSBC will ask whether you want to move your offset balance into a Pepper Money offset sub-account. It’s optional and only happens with your consent.
Is my money safe in a Pepper Money offset sub-account?
Not because of the transfer. Your rate, fees, discounts and repayments carry across, and you won’t be moved to Pepper Money’s advertised rates. Variable rates can still change in line with your loan terms, for example if the Reserve Bank moves the cash rate or lender funding costs change.
What happens when my fixed rate ends?
If it ends after the transfer, your loan reverts to a standard variable reference rate plus any HSBC margin discount in your letter of offer. If it ends before, HSBC will contact you with options.
Can I still redraw on my home loan?
Yes, if redraw is available on your Australian dollar home loan now, you’ll keep it after the transfer.
Can I still borrow more on my HSBC home loan?
You can apply for an increase, subject to credit assessment. HSBC assesses requests before the transfer and Pepper Money after.
Will my mortgage broker still look after me?
Yes. Pepper Money says your broker relationship won’t change because of the transfer.
What happens to my HSBC everyday and savings accounts?
They aren’t part of the sale. HSBC is winding them down and will tell you what happens to each product.
Is Pepper Money a bank?
No. It’s a non-bank lender, so it doesn’t take deposits and isn’t supervised by APRA. It’s licensed and regulated by ASIC, and must follow the same consumer credit laws as banks.
This information 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 professional advice before making a decision.