The honest answer is that it depends on your situation. There is no single right answer for all 120,000 affected customers. Here is a practical guide to help you work out which category you fall into.

Refinancing may make sense if any of the following apply to you

1. You hold significant savings in your offset account and are concerned about protection

As outlined above, Pepper Money's offset arrangement is a sub-account linked to your loan, not a separate ADI-protected bank account. If you regularly hold substantial funds in offset, and the $250,000 FCS protection of those funds matters to you, refinancing to a bank lender that offers a fully protected offset account may give you greater peace of mind.

2. You prefer certainty over ongoing uncertainty

The transfer to Pepper Money is expected to occur in the first half of 2027, but the process requires multiple regulatory approvals and there is no fixed completion date. Completion is contingent on approvals from Australian authorities overseeing foreign investment, banking, competition and securities. For customers who would rather lock in a known outcome with a lender of their own choosing than wait through an uncertain process, refinancing now removes that uncertainty entirely.

3. You have additional borrowing needs in the near future

If you are planning to access equity to fund a renovation, purchase an investment property or consolidate debt, the current transition period creates complexity. The applicable credit policy (whether HSBC or Pepper Money's policy applies to new lending at the time of your application), rate discounts on any top-up and the timing of who is responsible for assessing your application all remain unclear. Refinancing to a lender you actively choose allows you to plan and structure future borrowing with confidence.

4. Your interest rate is no longer competitive

In the current lending environment, many lenders are offering sharper discounts to attract refinancers. For owner-occupied home loans, competitive rates are currently available from approximately 5.93 per cent, and for investment loans from approximately 6.09 per cent (for borrowers with an LVR of 80 per cent or less, subject to lenders’ credit assessment).

There is an additional timing consideration here. If the Reserve Bank increases the official cash rate in the second half of 2026, your borrowing capacity will reduce, meaning the same income level may support a smaller loan. Refinancing before any rate increase locks in your current borrowing capacity and potentially secures a more competitive rate at the same time.

Pro Tip: If you are considering refinancing, act before the RBA's next scheduled decision rather than waiting to see what happens. Borrowers who wait and see often find their refinancing options narrowed by the time they are ready to move.

Staying put may make sense if any of the following apply to you

1. Your current HSBC rate is still competitive

Not all HSBC home loan customers are on rates that warrant refinancing. If your current rate is already near or below the best available in the market, the cost and effort of refinancing, including any discharge and establishment fees, may not produce a meaningful financial benefit. Before deciding, it is worth getting your current rate compared against current market rates. A mortgage broker can do this comparison for you at no cost.

2. You have no plans to borrow further or change your loan

If you have no intention of accessing equity, topping up your loan, switching rate type or making structural changes to your borrowing in the foreseeable future, the practical impact of the HSBC transition is limited. Your rate remains the same, your repayments continue as normal and Pepper Money's online portal will allow you to manage your loan digitally in a similar way to your current HSBC online access. For customers in this position, monitoring the transfer communications from HSBC and Pepper Money and updating your repayment details when prompted may be all that is required.