Real Estate

High ratio fixed mortgage

  • Last Updated:
  • Jun 14th, 2020 11:35 am
[OP]
Newbie
May 30, 2020
6 posts
1 upvote

High ratio fixed mortgage

How does HSBC offer the lowest high ratio fixed rate mortgage?

Does anyone have any experience having a mortgage with them in Ontario? There are no branches close by to me other than approx 40 km...are they reliable and do they provide good customer service?
6 replies
Deal Addict
User avatar
Dec 27, 2007
1208 posts
605 upvotes
Oshawa
1. They choose to.
2. Who goes into a bank anymore? You can do everything online or via phone.
Jr. Member
May 15, 2019
124 posts
131 upvotes
bkiss74 wrote: How does HSBC offer the lowest high ratio fixed rate mortgage?

Does anyone have any experience having a mortgage with them in Ontario? There are no branches close by to me other than approx 40 km...are they reliable and do they provide good customer service?
They’re archaic and take an eternity to approve your documents- besides, most of them don’t even know what docs to ask for pertaining to a mortgage, let alone approve it. Their pre-payment penalties are through the roof.

Do your due diligence prior to going with any lender.
Member
Oct 12, 2005
338 posts
288 upvotes
Terrace
I switched to HSBC in March. It took about four days to get the process started, but start to end was only three weeks for a switch. The rep that I was assigned at their mortgage centre was very efficient and replied to my emails the same day, even on the weekends (YMMV). They use FNF Canada to do the legal paperwork which is one of the two major title companies in Canada that many other FI's use. You will likely have to go to the HSBC branch to set up a profile if you're not their customer already, and also to sign the paperwork. As far as I've heard, they do not have it setup for video conferencing like some other lenders. Part of my agreement was that the mortgage payments have to come out of an HSBC account, which is fine for me because they gave me a free unlimited bank account and they were on the same Exchange ATM network that my previous credit union used. It may be a hassle considering your distance from the closest branch.

Penalties on fixed mortgages are high; this is the case with many other banks and credit unions too; choose a variable mortgage or a fair-penalty lender if you don't want this. Read more here: https://www.ratespy.com/fair-penalty-le ... s-05109252
HSBC's variable product at p-0.7 (1.75%) for CMHC-insured mortgages are an excellent choice as they become fully open without penalties in the 4th and 5th year.

That being said, I know broker firm True North Mortgages is also offering similar rates to HSBC right now - they can do everything remotely. Not sure if their products include a Bonafide Sales Clause (read more: https://www.ratespy.com/bona-fide-sale- ... p-05309587); you'd want to ask about that. I know some other brokers are offering rates in the low 2%'s for fixed CMHC mortgages as well, and p-0.5 or better for variable... and these are likely with a fair penalty lender.

Edit: typo
Deal Addict
Jul 3, 2007
2665 posts
2801 upvotes
Toronto
bkiss74 wrote: How does HSBC offer the lowest high ratio fixed rate mortgage?

Does anyone have any experience having a mortgage with them in Ontario? There are no branches close by to me other than approx 40 km...are they reliable and do they provide good customer service?
Because they are money launderers ..... low rates are not a problem when the drug cartels are paying for the margin losses...

https://www.marketwatch.com/story/netfl ... 2018-02-21

HSBC, Europe’s biggest bank, paid a $1.9 billion fine in 2012 to avoid prosecution for allowing at least $881 million in proceeds from the sale of illegal drugs. In addition to facilitating money laundering by drug cartels, evidence was found of HSBC moving money for Saudi banks tied to terrorist groups. Even though federal investigators found evidence “that senior bank officials were complicit in the illegal activity,” no HSBC executives faced charges for their actions. The Wall Street Journal revealed in 2016 that U.S. Justice Department officials, led by President Obama’s former Attorney General Eric Holder, overruled their prosecutors’ recommendation to pursue criminal charges against HSBC in 2012.
Deal Addict
Nov 24, 2013
1077 posts
543 upvotes
Toronto
joepipe wrote: Because they are money launderers ..... low rates are not a problem when the drug cartels are paying for the margin losses...

https://www.marketwatch.com/story/netfl ... 2018-02-21

HSBC, Europe’s biggest bank, paid a $1.9 billion fine in 2012 to avoid prosecution for allowing at least $881 million in proceeds from the sale of illegal drugs. In addition to facilitating money laundering by drug cartels, evidence was found of HSBC moving money for Saudi banks tied to terrorist groups. Even though federal investigators found evidence “that senior bank officials were complicit in the illegal activity,” no HSBC executives faced charges for their actions. The Wall Street Journal revealed in 2016 that U.S. Justice Department officials, led by President Obama’s former Attorney General Eric Holder, overruled their prosecutors’ recommendation to pursue criminal charges against HSBC in 2012.
What do you expect given their provenance. The City of London facilitates all kinds of dubious financial activity.
Deal Addict
Jul 3, 2007
2665 posts
2801 upvotes
Toronto
lpin14 wrote: What do you expect given their provenance. The City of London facilitates all kinds of dubious financial activity.
imagine how much dirty money they have funneled through vancouver and toronto in the last 10 years.....

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