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[HSBC] Variable Rate Mortgage - Prime minus 0.96%

  • Last Updated:
  • Sep 21st, 2017 2:32 pm
Newbie
Aug 20, 2017
4 posts
1 upvote
I have just completed transferring the mortgage to hsbc, the appraisal fee was $280 and they didn't waive it because the $500 is to cover this cost.i was told that if the appraisal says that your property is over a certain amount , the fee will be higher which is over $500.
I think HSBC have just increased the rate to 2.14...
Sr. Member
Sep 8, 2004
823 posts
39 upvotes
I also see 2.14% - missed it by *that* much. Was hoping to use the 1.99% at least as a bargaining chip with BMO, but I'll find out tomorrow.
Newbie
User avatar
Sep 21, 2007
87 posts
13 upvotes
guys, one quick question. what is better? 5 years variable closed at 2.35 or 3 years variable close at 2.25%
Sr. Member
Sep 8, 2004
823 posts
39 upvotes
barto wrote:
Aug 22nd, 2017 10:37 pm
I also see 2.14% - missed it by *that* much. Was hoping to use the 1.99% at least as a bargaining chip with BMO, but I'll find out tomorrow.
BMO won't touch this, at least the first guy I talked to at our branch. Best he would offer was this chart (sent by e-mail):
Here are the best rates we are currently offering for the terms you selected. Please note that rates can only be guaranteed for today’s business day and are only “locked in” with an approved application completed.

3 Year Fixed Closed: 2.79%
5 Year Fixed Closed: 2.99%
5 Year Smart Fixed Closed: 2.79%
5 Year Closed Variable: 2.44%

The 5 Year Smart Fixed Closed term allows for a lower rate, but limited pre-payment options 10+10 (10% lump sum and/or 10% increase to payments) as well as maximum 25 year amortization.

The other terms listed allow for a 20+20 pre-payment option which means you can place up to 20% of your original mortgage each year as a lump sum payment to the principal as well as increase payments by 20% per calendar year.
A bit of a nightmare trying to make a local branch appointment over the phone (was wanting quicker action than submitting their online form), but the in-branch people were great.

Nicer and quicker to reply than my BMO branch people! Hmmm...

takhan, why not this HSBC deal of 5 years variable closed (with no penalty after 3 years) at 2.14%? (Or prime - .96%)
Sr. Member
Oct 24, 2009
537 posts
283 upvotes
Vancouver
9613019 wrote:
Jul 15th, 2017 11:20 am
Do not forget to check to see whether you can take advantage of $500 credit on opening new chequeing account and $200 referral.
How do I get this $200 referral bonus?
Newbie
User avatar
Sep 21, 2007
87 posts
13 upvotes
I'm going to have an appointment with HSBC representative. is there any premium account holder who cares for a referral bonus. I think we both get $100 dollars if not mistaking. PM me
Deal Addict
User avatar
May 6, 2007
1059 posts
129 upvotes
Couple of questions to those who already got this mortgage rate:
1. Is this conventional mortgage?
2. Is this rate for uninsured mortgage?
3. Is it available for first by only or refinancing as well?
4. Is HELOC is is available with this mortgage, if yes what would be the rate?
Thanks!
Newbie
User avatar
Sep 21, 2007
87 posts
13 upvotes
I am being offered both conventional mortgage and flexline by TD, which one to choose? one reason I know is a legal fee when discharging to porting from one institution to another. is there any thing else significant?
Member
Jan 1, 2009
306 posts
56 upvotes
takhan wrote:
Aug 26th, 2017 11:22 am
I'm going to have an appointment with HSBC representative. is there any premium account holder who cares for a referral bonus. I think we both get $100 dollars if not mistaking. PM me
PM'd
Looking for a suitable Mortgage Broker to join - Completed Mortgage Agent Course.
Jr. Member
May 19, 2013
137 posts
55 upvotes
takhan wrote:
Aug 26th, 2017 5:39 pm
I am being offered both conventional mortgage and flexline by TD, which one to choose? one reason I know is a legal fee when discharging to porting from one institution to another. is there any thing else significant?
Do not go with TD. All their mortgages are collateral and their mortgage prime rate is .15% higher than EVERYONE else
Sr. Member
Sep 8, 2004
823 posts
39 upvotes
I checked out Tangerine (tangerine.ca) just to see what they had to say about rates - their 5-year, variable rate was 2.55%, so that doesn't help. However, I did notice this description of the difference between collateral and 'regular' mortgages:
When a house is mortgaged, it is used as security against the loan. This security is registered with a land registry office and is commonly known as a “charge”. This charge gives the lender the legal right to claim the registered house if the mortgage defaults. There are 2 types of charges that can be registered by a lender; Conventional (or Standard) and Collateral. At Tangerine Bank, our mortgages are registered as a Collateral Charge.

How is a Collateral Charge at Tangerine different from Conventional Charge?
Ugh, forgot that their text chart won't translate well here. Try this link and click on the tab for "Understanding Collateral Charge Mortgages":
https://www.tangerine.ca/en/borrowing/t ... index.html
Sr. Member
Sep 8, 2004
823 posts
39 upvotes
By the way, my HSBC rep said this when I asked about referral deals:
Referel bonus, $500 for mtg as long as mortgage value is more than $200k

Then bonus for account opening,
$300 bonus if you deposit $5000 within one month from opening the account.
You can use that money for mtg payments and other purchases. It is not mandatory to maintain that money.
(And yes, it's not too impressive that he didn't spell "referral" correctly, but otherwise he's been good to deal with. Even for a 25-year-old!)
Deal Addict
User avatar
May 6, 2007
1059 posts
129 upvotes
Did anyone obtain HELOC together with this rate mortgage, if yes, what was the rate for HELOC?
Newbie
User avatar
Aug 29, 2011
74 posts
41 upvotes
rtmrrtmr wrote:
Aug 14th, 2017 7:40 pm
Fixed rate mortgages are calculated differently. One of the reasons I decided to go variable
To expand on this, it was introduced during the financial crisis of 2008 by Canadian banks to stop customers from jumping ship when rates started falling drastically, because you know, you signed a contract where they can change the terms at will, but you can't.

Generally they get you by calculating the difference between your current interest rate and the their posted rate at the time (not the deals they gave people at the time) over the remaining term of your mortgage. This means that it can be much higher than 5 or 7 or 9k depending on that interest delta and how much you borrowed. Essentially they want you to pay a good chunk of the interest they would have made by you breaking the contract, upfront, now. How they are allowed to use their posted rates (the high ones no one actually gets) is beyond me.

Fun fact, after 5y of a contract, they can't charge this, ie if you locked in for 7 or 10y and want out at 5y.

https://www.canadianmortgagetrends.com/ ... ntial-ird/

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