HSBC fixed-rate mortgages
Fixed-rate mortgages offer you predictable mortgage payments. You never have to worry about a rise in interest rates to cause your mortgage payments to rise. HSBC Canada provides fixed-rate mortgages in a variety of closed and open term lengths.
Closed term mortgages have fewer options to make extra payments on your mortgage. They do, however, come with lower interest rates than open term mortgages. With an open term mortgage, you are free to make however much in additional prepayments on your mortgage principal, without penalty.
HSBC Canada offers fixed-rate closed term mortgages in lengths ranging from 6 months to 10 years terms. Open term mortgages come in either a 6 month or 1-year term.
HSBC variable-rate mortgages
A variable rate mortgage can potentially give you the cheapest borrowing option. With currently low lending interest rates, your mortgage payments will be lower than a fixed-rate mortgage. However, if HSBC raises its prime lending rate during your mortgage term, then your interest costs will also increase.
HSBC Canada currently offers variable-rate mortgages on 5-year closed term and 3-year open term mortgages.
HSBC high ratio mortgage
If you make a down payment of less than 20% and get mortgage default insurance, you could be eligible for one of HSBC's high ratio mortgage offers. With a high ratio mortgage, you will receive a very competitive interest rate on your mortgage.
HSBC has some of the lowest high ratio mortgage rates in Canada. They currently offer high ratio mortgages on their fixed rate 5-year closed term mortgage and their variable rate 5-year closed term mortgages.
HSBC cashback mortgage
Until October 2nd, 2020, HSBC Canada is offering a cashback bonus of up to $3,000 on qualified mortgages. On mortgages between $200,000 and $399,999, you can get $1,200 cashback, $2,000 cashback on mortgages between $400,000 and $749,000, Or $3,000 cashback on mortgages greater than $750,000.
To qualify for this cashback offer, you must either:
- Get a 5-year closed term mortgage with HSBC
- Or get a mortgage of at least $200,000 on a new home purchase with HSBC
- Or move an existing mortgage over to HSBC from another financial institution
You must also have an HSBC chequing or savings account to receive the cashback offer. See HSBC for the latest terms and conditions on the cashback offer.
HSBC mortgage prepayments
Making mortgage prepayments allow you to reduce your overall interest costs and pay off your mortgage sooner. With an open mortgage, you can make unlimited prepayments, and pay off your entire mortgage during the term if you choose.
Closed term mortgages, on the other hand, have limits in terms of how much in prepayments you can make every year. HSBC Canada allows for three different prepayment options on closed term mortgages. You can choose from one of the following prepayment options every year:
- You can increase your mortgage payment by 20%
- Or you can make a lump-sum payment of up to 20% of your original mortgage balance
- Or you can choose to match any regularly scheduled mortgage payment during the year
HSBC Home Equity Line of Credit
If you have at least 20% equity in your home, you can apply for an HSBC home equity line of credit. With a home equity line of credit, you can access up to 65% of your home's value in the form of a revolving line of credit.
The home equity line of credit can be used as a flexible funding source for vacations, home renovations, or any other unexpected expense. The low-interest rate on the HSBC home equity line of credit also makes it a great solution to consolidate your other higher interest debts and save on interest charges.
You only have to apply for the home equity line of credit once. Once you're approved, you'll be able to borrow from, payback, and reuse the line of credit whenever you want, so long as you make the minimum monthly interest payments on the amount you use.
HSBC Equity Power Mortgage
You can use the equity you've built up in your home to borrow up to 80% of its appraised value through an HSBC Equity Power Mortgage. The Equity Power Mortgage allows you to use your home as collateral for a line of credit and a mortgage loan.
Up to 15% of the value of your home can be used to secure an additional fixed or variable rate loan. The remaining borrowing capacity can be a revolving home equity line of credit.
HSBC Mortgage Advisors
An HSBC mortgage advisor can help you navigate any mortgage-related process that involves HSBC Canada. They can help you apply for, renew or refinance your mortgage. They can also help you understand your mortgage options better and provide more context to the different mortgage products HSBC offers. You can get in touch with an HSBC mortgage advisor by phone, or by visiting an HSBC branch.
By getting a no-obligation mortgage pre-approval from HSBC, you will know precisely how much you can spend on a home. Once HSBC pre-approves you for a mortgage, you'll receive a letter with the agreed-upon terms, interest rate, and conditions of your mortgage. So long as your financial situation doesn't change, your mortgage pre-approval will be honoured for 120 days, giving you enough time to find the perfect home.
To apply for a mortgage from HSBC, you'll need the following documents on hand:
- Proof of employment
- Last two years of tax returns
- Your most recent bank statements
- Proof of down payment
- In other cases, HSBC may ask for a copy of your credit report or, if you own a business, your financial statements
Renew your HSBC Mortgage
As your HSBC mortgage term comes up for renewal, you should take the opportunity to review your finances and adjust your financial goals if needed. It's an excellent time to speak with an HSBC mortgage advisor to go over your renewal options. It's also a great time to explore other mortgage options with different lenders.
About HSBC Canada
HSBC Canada is the Canadian subsidiary of HSBC Holdings, which is one of the largest banks in the world. The bank serves over 40 million customers in 65 countries worldwide. HSBC is listed on the London, Hong Kong, New York, Paris, and Bermuda stock exchanges.