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[HSBC] HSBC 5-year fixed mortgage 2.39% + up to $1500

  • Last Updated:
  • Sep 18th, 2017 10:43 pm
Sr. Member
Feb 25, 2007
882 posts
344 upvotes
Ottawa
Since this is back, worth noting some of my experiences with the previous 2.35% HSBC offer. I would assume they apply here too, but of course YMMV.
  1. Their standard rate hold is 120 days, though rep can extend to 150 days.
  2. At least for a $300k mortgage transfer, they did appraisal at their expense, and are contributing $500 to our legal costs - which should be enough for a conventional mortgage transfer but not quite enough if you have a collateral charge mortgage. (I don't know, but I could see them becoming stingier here now that they're offering the cash back)
  3. In our case, we wanted a collateral mortgage so no problem, but people reported you really had to be super explicit and push hard if you wanted a conventional mortgage only.
  4. HELOC rate stacked on top of the (collateral) mortgage we got offered was P+0.5 - in line with market, but you can get P+0 these days in some places
  5. Processes at HSBC are super slow. Give yourself time.
  6. Using the 2.35% as leverage, was able to negotiate our current big-5 bank to 2.56% but no further. So it is worth some hassle.
Last edited by houska on May 6th, 2017 7:30 am, edited 1 time in total.
Sr. Member
May 28, 2007
573 posts
29 upvotes
GTA
I have previously applied in march and approved mortgage with HSBC but is going to expire before my closing date. I have to apply a new mortgage. Do I qualified for this promo?
[OP]
Sr. Member
Jul 8, 2011
874 posts
349 upvotes
WESTMOUNT
steinberg wrote:
May 6th, 2017 10:26 pm
I have previously applied in march and approved mortgage with HSBC but is going to expire before my closing date. I have to apply a new mortgage. Do I qualified for this promo?
Call and ask them to extend it. Good luck!
Member
User avatar
Jan 24, 2008
351 posts
8 upvotes
Edmonton
houska wrote:
May 6th, 2017 7:30 am

[*]Using the 2.35% as leverage, was able to negotiate our current big-5 bank to 2.56% but no further. So it is worth some hassle.
Did they say why they couldn't match 2.35%? I am going to try this route as well.
Sr. Member
Feb 25, 2007
882 posts
344 upvotes
Ottawa
baxbunny wrote:
May 8th, 2017 2:53 pm
Did they say why they couldn't match 2.35%? I am going to try this route as well.
Institutions have their rates, some tiered offerings for specific sets of clients, and then a limited amount of discretion. They don't necessarily follow each other in a race to the bottom just to get volume.
The 2.35% was a truly excellent one at the time, and it was known the big 5 would not really come close.
In addition, I got the 150 day hold, but by the time I was negotiating with my current bank, the 2.35% was up to 2.49% (the 2.39% thread was not active yet). Not unreasonable to assume banks' pricing policy and discretionary guidance might have changed when the 2.35% stopped being available. I.e., if you're in a similar boat, worth pushing to see if the recent 0.1% dip by HSBC translates into more latitude.
Sr. Member
Oct 4, 2008
657 posts
76 upvotes
houska wrote:
May 6th, 2017 7:30 am
Since this is back, worth noting some of my experiences with the previous 2.35% HSBC offer. I would assume they apply here too, but of course YMMV.
  1. At least for a $300k mortgage transfer, they did appraisal at their expense, and are contributing $500 to our legal costs - which should be enough for a conventional mortgage transfer but not quite enough if you have a collateral charge mortgage. (I don't know, but I could see them becoming stingier here now that they're offering the cash back)
  2. In our case, we wanted a collateral mortgage so no problem, but people reported you really had to be super explicit and push hard if you wanted a conventional mortgage only.
  3. HELOC rate stacked on top of the (collateral) mortgage we got offered was P+0.5 - in line with market, but you can get P+0 these days in some places
Thanks for your perspective and overview. Would you be able to elaborate more on your points 2 and 3 since I don't know much about mortgages (have on with same bank since the beginning)....I guess my non understanding is due to lack of knowledge about all these different types of mortgage and what would make bank be more stringier or why you would need to be more explicit.

If you have a HELOC, does that have to close with previous bank or it gets transferred through paper work when moving mortgage out ? I believe my HELOC is prime + lots, not even close to ~0 (but I must check first).
Sr. Member
Feb 25, 2007
882 posts
344 upvotes
Ottawa
darkesha wrote:
May 15th, 2017 6:55 pm
Thanks for your perspective and overview. Would you be able to elaborate more on your points 2 and 3 since I don't know much about mortgages (have on with same bank since the beginning)....I guess my non understanding is due to lack of knowledge about all these different types of mortgage and what would make bank be more stringier or why you would need to be more explicit.

If you have a HELOC, does that have to close with previous bank or it gets transferred through paper work when moving mortgage out ? I believe my HELOC is prime + lots, not even close to ~0 (but I must check first).
There's a variety of threads on RFD and elsewhere on collateral charge vs conventional mortgages. Briefly, a conventional mortgage is registered against title for the specific amount of the mortgage. This form of registering against title can be easily transferred to another lender, so if you move to another lender it's easy to port it over with minimal hassle and cost. A collateral charge mortgage is a different form of registration, which is compatible with the specific amount of the mortgage being unspecified. This is necessary if you have a mortgage+HELOC combo. However, this form of registration against title can't just be transferred to another lender. If you want to switch, a real estate lawyer (or at least a title company) needs to be involved to accept the money from your new lender, use it to discharge your original mortgage (+HELOC if applicable), remove it from title, and register the new mortgage on title. This is significantly more paperwork and so will cost you some $.

Many banks these days prefer to register mortgages as collateral charges where possible. The benevolent explanation is that it is then easy to extend you a HELOC later if you want one. The more sinister explanation is that the cost and hassle of switching to another lender helps keep you as a customer at renewal time.

That also refers to your last question. Since your previous mortgage is being discharged and a new one being set up (rather than a transfer), I assume your lawyer can set up the precise split of funds however appropriate.
Newbie
Nov 17, 2006
81 posts
61 upvotes
Toronto
Wondering if they have new to Canada or any specialty programs?
Newbie
User avatar
Feb 22, 2010
36 posts
3 upvotes
Canada
I'm just finishing up with HSBC on the 2.35% offer. Should have all the paper work signed late next week. They gave me $900 to transfer everything over. Basically cover the house appraisal and lawyer fees. I'm currently with PC Financial and when I asked them to match the rate the best they would do was 2.59% for 4 years. Even after fees I will be saving $3500 which was well worth the hassle for me to move banks. I moved everything over to HSBC and although they have been slow at times I've received excellent service from the Saskatoon branch. They gave me no fee banking and free cheques which is all I was after.
Newbie
Oct 2, 2014
8 posts
Ajax, ON
I am also finishing up with HSBC on their 2.35% offer, all paper work should be ready for me by the end of this week, unfortunately for me, there was no $900 offer to help transfer everything over Disappointed Face. Just curious, did you ask them for help with the appraisal and lawyer fees, or did they offer it to you at the beginning?

I live Pickering, but for some reason I am dealing with a Service and Sales Specialist out of Vancouver.
Deal Addict
Mar 12, 2010
1257 posts
46 upvotes
Aurora
Turd_Hunter wrote:
May 17th, 2017 1:14 pm
I'm just finishing up with HSBC on the 2.35% offer. Should have all the paper work signed late next week. They gave me $900 to transfer everything over. Basically cover the house appraisal and lawyer fees. I'm currently with PC Financial and when I asked them to match the rate the best they would do was 2.59% for 4 years. Even after fees I will be saving $3500 which was well worth the hassle for me to move banks. I moved everything over to HSBC and although they have been slow at times I've received excellent service from the Saskatoon branch. They gave me no fee banking and free cheques which is all I was after.
Where do you fin the tool to see the savings? Also are you looking at charge or collateral mortgage at HSBC?
Jr. Member
Apr 9, 2010
190 posts
67 upvotes
Toronto
Thanks for all the info in this thread. I was able to use the HSBC rate to negotiate a better rate at TD. If anyone is interested, you can get 2.39% for fixed 5 years, 2.14% for fixed 2 years and variable 5 years with 2.05%. I was given this information today when I went to renew my rate.
Newbie
May 5, 2017
64 posts
89 upvotes
This is a really good deal! Especially coming from HSBC...they rarely had any deals...Too bad I already renewed my mortgage (at a higher rate) ... :(
Always up for deals...
Newbie
Jun 15, 2015
7 posts
2 upvotes
Edmonton, AB
Sorry to be ignorant could someone tell me if I could renegotiate my current 5 years fixed with TD? I'm half way through.

What about like the above posted said and negotiate a rate with TD using this, then get a 120 rate hold for a NEW mortgage towards another property.

Thank you for being smart and helping

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