What Was Announced
On 31 July 2026, HSBC Bank Australia announced it has agreed to sell its Australian home and personal loan portfolio to Blackstone.
The portfolio has a book value of approximately A$36 billion (about US$25 billion). It will be acquired by Virgo BidCo, a vehicle wholly owned by funds managed by affiliates of Blackstone. The final purchase price will be adjusted before completion to account for factors including new loans written between now and settlement.
Separately, Pepper Money Limited has been appointed as servicer of the portfolio. Pepper Money will become the day-to-day point of contact for these loans once the transaction completes.
Blackstone has described the transaction as the largest home loan portfolio transaction globally.
The Key Details
| Announced | 31 July 2026 |
| Seller | HSBC Bank Australia |
| Buyer | Virgo BidCo, owned by funds managed by Blackstone affiliates |
| Portfolio | Australian home loans and personal loans |
| Book value | Approximately A$36 billion |
| Servicer | Pepper Money Limited |
| Expected completion | First half of 2027 |
| Conditions | Subject to regulatory approvals |
HSBC has said the sale is expected to result in an immaterial loss for the HSBC Group.
What This Means If You Have an HSBC Home or Personal Loan
The most important point in both announcements is that there is nothing you need to do right now. The transaction has not completed, and both HSBC and Pepper Money have said they will write to affected customers with confirmed dates and any required steps closer to the transfer.
What stays the same
According to Pepper Money's customer information, the commercial terms of your loan carry across:
- Interest rates, fees, discounts and repayments transfer as they are. Customers will not be moved onto Pepper Money's advertised rates.
- Fixed rate periods continue on their existing terms.
- Interest-only arrangements continue as agreed.
- Existing repayment arrangements carry over.
- Financial hardship support continues.
What changes
Also according to Pepper Money's published information:
- Pepper Money becomes your point of contact for repayments, general enquiries, loan changes and day-to-day support.
- The lender and mortgagee name recorded against your loan and property security will be updated as part of the transfer process.
- HSBC debit cards linked to your loan can be used up until the transfer, after which a replacement Pepper Money debit card is issued.
- Offset accounts move to Pepper Money's offset sub-account. Pepper Money states this is structured differently to a bank offset account but operates in the same way to reduce interest on your loan. It is set up as a separate split account within your loan, and Pepper Money notes that your consent is required before this transfers.
- Statements move to a half-yearly cycle from the transfer date onwards.
If you use an offset account, the consent step is the one to watch for in your HSBC correspondence, since it is an action rather than something that happens automatically.
The Wider HSBC Australia Picture
The loan portfolio sale sits alongside a broader change to HSBC's Australian retail operations. HSBC has said it will wind down its Australian retail banking business over approximately 18 months, covering:
- Transaction accounts
- Savings and term deposits
- Credit cards
- Foreign currency accounts
- Wealth and investment products
HSBC's Corporate and Institutional Banking, Private Banking and Asset Management businesses in Australia are not part of these changes and continue to operate.
If you hold deposit accounts, a credit card or investment products with HSBC in addition to your loan, those are covered by the wind-down rather than by the Blackstone sale, and HSBC will contact you separately about them. In the meantime, HSBC has asked customers to continue banking as normal.
Timeline
The transaction is expected to complete in the first half of 2027, subject to regulatory approvals. Until then:
- Your loan continues to be held and serviced by HSBC on its current terms.
- HSBC will send updates confirming dates and any actions required.
- After completion, Pepper Money becomes your servicing contact.
Before the transfer, HSBC remains your point of contact. The contact numbers published by Pepper Money for HSBC customers are 1300 308 008, or 1300 301 168 for Premier customers. Please check the HSBC website for current contact details before calling, as these may change.
A Practical Note
A change of this kind is a natural prompt to check that your own records are in order. A few things worth doing regardless of who services your loan:
- Make sure your contact details are current with HSBC, so you receive the correspondence about dates and next steps.
- Keep the letters you receive. They will confirm your loan details, account numbers and any changes to how payments are made.
- Note your fixed rate expiry date if you are on a fixed term, since that is a decision point whoever holds the loan.
- Check how your offset is set up, if you use one, so the change in structure is not a surprise.
More generally, it is good practice to review a home loan every couple of years — comparing your rate, structure and features against what is currently available — whether or not anything is changing at your lender. If you would like a second set of eyes on where your loan sits, we are happy to take a look and explain your options, including staying exactly where you are. There is no obligation either way. You can also model repayments yourself with our mortgage repayment calculator.
Official Sources
Levio Finance is not affiliated with, endorsed by, or acting on behalf of HSBC, Blackstone or Pepper Money. This article summarises publicly available announcements for general information. HSBC, Blackstone and Pepper Money are the trade marks of their respective owners.
For the announcements in full, and for the most current customer information, go directly to the source:
- HSBC Australia — HSBC agrees to sell AUD36 billion Australian home and personal loan portfolio to Blackstone
- HSBC Australia — Home loan and personal loan FAQs (PDF)
- Pepper Money — Information for HSBC customers
- Blackstone — Blackstone to Acquire HSBC's A$36 Billion Australian Home Loan Portfolio
This article is general information only and was prepared on 1 August 2026 based on announcements made on 31 July 2026. It does not take into account your objectives, financial situation or needs, and it is not financial, credit, taxation or legal advice. Nothing in this article is a recommendation to refinance, to change lenders, or to remain with your current lender.
The details above are summarised from announcements published by HSBC, Blackstone and Pepper Money and are accurate to the best of our knowledge at the date of writing. The transaction is subject to regulatory approvals and the terms and timing described may change. We do not control this information and are not responsible for it. Always rely on the communications you receive directly from HSBC and Pepper Money about your own accounts, and confirm current details with them before acting.
Levio Pty Ltd (ACN 618 540 775) is a Credit Representative (Credit Representative Number 563108). Any credit assistance we provide is subject to a full assessment of your circumstances, and lending is subject to lender approval, terms, conditions, fees and charges. Contact us if you would like to discuss your circumstances.
