If you have a home loan with HSBC or Suncorp Bank, you’ve probably had a letter or two lately. Both banks are leaving the home loan market in their current form. Many borrowers are now asking whether to stay put or refinance. If you’re planning to refinance from HSBC in particular, there’s one thing to know first: start early. Right now, HSBC discharges are taking around a month. The good news is that some lenders can get around the wait.
What’s Happening With HSBC
In July 2026, HSBC agreed to sell its Australian home loan and personal loan book to a company owned by Blackstone funds. Pepper Money will manage the loans once the sale completes (Australian Broker). HSBC is also closing the rest of its Australian retail bank, including transaction and savings accounts, over the next 18 months.
The transfer to Pepper Money is expected in the first half of 2027, subject to regulatory approval. Pepper Money says your rate, repayments, fees and discounts won’t change because of the transfer. However, you can’t opt out. If you still have the loan on the transfer date, it moves across. If you’d rather not, you can refinance or pay out the loan before then (Pepper Money).
There’s also a change to offsets. After the transfer, 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.
What’s Happening With Suncorp Bank
Suncorp Bank stopped taking new home loan applications on 7 October 2026 (Suncorp Bank). Existing customers are moving to ANZ products progressively by June 2027 (Suncorp Bank). Your current loan carries on for now. But a top-up or any change that needs a new loan contract now has to go to ANZ or another lender.
Suncorp Bank customers with several offset sub-accounts should also check what the move means for them, because ANZ doesn’t currently offer multiple offset accounts. Our earlier post on Suncorp Bank closing to new home loans covers this in more detail.
Why HSBC Discharges Are Taking Around a Month
When you refinance, your old lender has to prepare a discharge. That’s the paperwork to release its mortgage over your property, so your new lender can pay out the loan at settlement. Your new loan can’t settle until the old lender is ready.
HSBC says a discharge could take a minimum of 21 business days once it receives your signed request (HSBC). In my experience at the moment, it’s taking around a month. Since the sale was announced, a lot of HSBC customers have decided to move, and that demand is slowing things down.
So if you plan to refinance from HSBC, build that month into your timing. This matters most if a fixed rate is ending, a new lender’s offer has an expiry date, or you need the funds for a purchase or renovation by a set date.
A Faster Option: Lenders That Pay Out Your Loan First
Here’s the good news. A select group of lenders offer a fast refinance process that doesn’t wait on your old lender’s discharge. Instead, the new lender pays out your existing loan first. The paperwork to release the old mortgage then catches up afterwards.
In practice, your new loan and new rate can start sooner, even while HSBC works through its discharge queue. Each lender has its own criteria, so it won’t suit every loan. But if timing matters to you, it’s well worth asking about.
These lenders usually include a buffer amount in the payout. It covers the discharge fees and the interest that builds up while the old loan is being closed. The buffer can be a few thousand dollars, but it isn’t an extra fee or charge. Once the old loan is fully discharged, any leftover funds come back to you.
How Refinancing Works, Step by Step
- Review your current loan. Note your rate, balance, any fixed rate end date, offset balances and any break costs.
- Compare lenders. We look at rates, fees, offset features and how each lender assesses your situation.
- Apply and get approval. Your new lender assesses the application and usually values your property.
- Send the discharge request. All borrowers sign the discharge authority form, and I send it once your new loan is approved.
- Sign the new loan documents. Your new lender issues the loan contract for you to sign and return.
- Settle. Once both lenders are ready, your new lender pays out the old loan and your new loan starts.
Our home loan refinancing page explains each step in more detail. Moneysmart also has a useful checklist on switching home loans.
Tips to Avoid Delays
- Start the conversation now. With HSBC discharges taking around a month, the earlier you begin, the more options you keep.
- Ask about fast refinance. Some lenders pay out your old loan first, so you don’t wait on the discharge.
- Send the discharge form on approval. I normally handle this for you, and send it as soon as your new loan is approved.
- Get every signature. HSBC needs the form signed by all borrowers and mortgagors. A missing signature or detail can add delays.
- Check for break costs. Variable loans can usually be repaid at any time, but fixed rate loans may have break costs.
- Keep paying your current loan. Keep your repayments going as normal until settlement day.
- Plan for your savings. HSBC is closing its transaction and savings accounts, so decide where your offset and everyday money will go.
Do You Have to Refinance From HSBC or Suncorp Bank?
No. If your loan suits you, staying put is a perfectly reasonable choice. HSBC loans keep their current rate and features when they move to Pepper Money. Suncorp Bank loans continue until customers move to ANZ.
That said, a change of lender is a natural time for a review. It’s worth comparing the market if:
- Your rate hasn’t been reviewed in a while, especially after the rate rises in 2026.
- Your offset set-up matters to you and is changing.
- You plan to borrow more for a renovation, investment or next home.
- Your fixed rate is ending soon.
- You’d simply prefer to choose your next lender yourself.
If your property has gone up in value, you may also be able to borrow more or get a sharper rate. See can I refinance if my house has gone up in value, and if your fixed rate is ending, your options when a fixed rate ends.
Refinancing From HSBC or Suncorp Bank: FAQs
HSBC Customers
HSBC says a discharge could take a minimum of 21 business days after it receives your signed request. At the moment, we’re seeing discharges take around a month, so allow plenty of time when you refinance from HSBC.
Yes, with select lenders. A fast refinance lets the new lender pay out your HSBC loan first, and the discharge paperwork follows later. The lender usually includes a buffer for discharge fees and interest, and any leftover funds come back to you. Lender criteria apply, so ask us whether your loan qualifies.
Not if you keep the loan. You can’t opt out of the transfer. However, you can refinance or pay out the loan before the transfer date, which is expected in the first half of 2027.
Pepper Money says your rate, repayments, fees and discounts won’t change because of the transfer. Later changes follow your existing loan terms.
Suncorp Bank Customers
Yes. You can refinance to ANZ or another lender at any time. Break costs may apply if you have a fixed rate loan.
Not with Suncorp Bank if the top-up needs a new loan contract. That borrowing now has to go to ANZ or another lender.
If you have an HSBC or Suncorp Bank home loan and want to know your options, I’m happy to help. We can compare lenders on our panel and plan your timing around the discharge, so there are no surprises on settlement day.
Published 15 October 2026, based on information from HSBC, Pepper Money, Suncorp Bank and industry reports at that date. Discharge times vary and may change. The information on this page is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply. Consider whether it is appropriate for you and speak to us for advice specific to your situation.
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