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[HSBC] Amazing Mortgage Rate 2.74% Fixed 5 year

  • Last Updated:
  • May 23rd, 2019 4:22 pm
Deal Guru
User avatar
Nov 27, 2005
11511 posts
1128 upvotes
willy0275 wrote:
May 10th, 2019 7:57 am
I'm not sure if it's the same reason here but when I bought my condo off-plan, I still needed to be pre-approved for a mortgage with a bank even though I did not have to use that same bank when the condo was completed and ready to be purchased. That's how you can end up "switching banks" when buying a property off-plan.
Every pre-construction condo requires pre-approval. It has zero impact on your actual mortgage down the road.
Sr. Member
Jun 11, 2004
865 posts
81 upvotes
Just had my meeting about my mortgage renewal in November. Scotia Offered 3.1%. Maybe I will sit down with hsbc and see if they can do better.
Member
Aug 16, 2013
457 posts
96 upvotes
Toronto
What would you recommend in my situation?

Insured High Ratio Mortgage
Mortgage Balance: $522,018.32
Term: 5 years Variable
Remaining Term: 3 years, 3 months
Remaining Amortization: 20 years, 8 months
Interest Rate: 3.25% (Prime -0.70)
Newbie
May 9, 2019
2 posts
Was anyone able to negotiate with HSBC to get 2.84% for 30 years amortization?
Newbie
May 6, 2019
24 posts
7 upvotes
roofgoof wrote:
May 10th, 2019 12:28 pm
What would you recommend in my situation?

Insured High Ratio Mortgage
Mortgage Balance: $522,018.32
Term: 5 years Variable
Remaining Term: 3 years, 3 months
Remaining Amortization: 20 years, 8 months
Interest Rate: 3.25% (Prime -0.70)
If you break your mortgage mid-term, and since you have a variable product right now, your penalty will most likely be 3 months' interest. I would call your current bank and ask for the penalty amount.

On a $520,000 mortgage, comparing a rate of 3.25% vs a 2.74%, you would save approximately $7500.

Take the amount you can save (~7500) and minus the penalty amount. That'd give you the savings and then you can decide whether it's worth it for you personally to make the switch.

Also I've heard HSBC is offering cash back on mortgages greater than $500,000 so that could also be another saving for you.
Sr. Member
User avatar
Jan 18, 2016
500 posts
513 upvotes
Kitchener, ON
SavvyShopperCa wrote:
May 7th, 2019 5:32 am
I was told the same thing over the phone, however if you read their T&C online, it only requires that your mortgage has a default insurance, does not specify CMHC. Worth looking into it
https://www.hsbc.ca/content/dam/hsbc/ca ... er_TCs.pdf
I escalated to HSBC but they are clear they will not renew mortgage which is insured with Genworth or Canada Guaranty, they only consider CMHC. This is a big setback for me.
Sr. Member
Sep 13, 2012
589 posts
266 upvotes
Vaughan, ON
FWIW our mortgage is with RBC and in 2017 I phoned in on a Monday morning literally 2 days prior to the BoC interest rate hike and was pleasantly surprised (shocked actually) to discover a very professional, attentive, and personable advisor on the other end of the line who helped with a switch from variable to fixed. I seem to recall sharing the details at the time on RFD and someone even offered to send me a case of beer (lol) because he was able to phone and get the same fixed rate which wasn’t being discussed here and it saved him a bunch. My point being if you haven’t already done so phone up your major institution’s mortgage line early one morning and see what transpires...I had great results.
Jr. Member
Jul 7, 2013
146 posts
224 upvotes
Glad it worked out for you and good advice.

I phoned HSBC twice this morning and neither rep gave me confidence (one even had to put me on hold to find out how the process would work for part of it), so I went to my branch after calls to their local number were routed to the call centre. Must be a great promo for them as I'd never seen a queue at the branch before and it was SRO! Earliest appt was Tuesday afternoon. Smart for other banks to match the rate for their customers!

Already upvoted but wanted to explicitly thank OP for sharing this significant saving!

cheers,
:)
Newbie
Sep 18, 2007
40 posts
3 upvotes
Toronto
Try to find someone who banks with HSBC and you will also be eligible for their referral offer too to help offset some mortgage transfer fees. I know I did this when I got my mortgage and was able to get another $350, on top of the $1000 for the mortgage.

https://www.hsbc.ca/share-the-experience/
Jr. Member
User avatar
Oct 13, 2017
129 posts
188 upvotes
Halifax
souvik126 wrote:
May 10th, 2019 2:44 pm
I escalated to HSBC but they are clear they will not renew mortgage which is insured with Genworth or Canada Guaranty, they only consider CMHC. This is a big setback for me.
I am sorry to hear that ! Have you tried to inquire with True North Mortgage, their current rate for 5 yr fixed is 2.79 for Ontario and Atlantic Canada. Not the best but close. You can probably get them to rate match HSBC
Newbie
Nov 20, 2005
85 posts
11 upvotes
cwangs wrote:
May 9th, 2019 5:54 pm
Which TD did you got the mortgage from? Would any TD match that offer?
Yes, curious to know how you got TD to match the rate. My mortgage specialist said that it was for high ratio mortgages and so they wouldn't be able to match it. Plus apparently HSBC is known to decline offers at the final hour leaving people without mortgages.
Jr. Member
Jan 29, 2017
177 posts
85 upvotes
jame11 wrote:
May 10th, 2019 4:22 pm
Try to find someone who banks with HSBC and you will also be eligible for their referral offer too to help offset some mortgage transfer fees. I know I did this when I got my mortgage and was able to get another $350, on top of the $1000 for the mortgage.

https://www.hsbc.ca/share-the-experience/
(waves hands)
Deal Addict
Dec 16, 2005
4331 posts
2083 upvotes
I had a pretty bad experience trying to get the HSBC mortgage. I started April 14 by calling in and they said the call center cannot start a mortgage application. They also said their system was down so they couldn't make an appointment at the branch either. No problem. I walked over to the branch and set up an appointment for April 16.

April 16 met with branch person to set up personal information. They connected me with someone in the mortgage center via phone. Was told he would email me documents required to continue the process. Credit check showed up on my Equifax.

April 23 heard nothing for a week. Emailed the branch and they called me back saying they would follow up.

April 26 someone from HSBC finally calls but I wanted them to call me back on landline. I gave them the number and they didn't call back. I tried for 1.5 hours calling them before they picked up. Then was told they were sorry another call came in and they are currently busy with another file and would call me back at 5pm.

WTF they were working my file but just took another call??? When I got through they told me to F off because they were working another file??? Anyway, as expected... I did not get a call back

I called their mortgage center to get a random agent to help me. Apparently nothing can be done until this person who won't speak with me speaks to me. I told them to just send me the list of documents they need. Nope can't do that until I talk to my assigned agent.

April 28 they call me. Of course I'm busy as it was Sunday and I was expecting the call as agreed at 5pm 2 days ago... phome was on silent as I was watching endgame. I call back and it is voicemail again.

April 29 finally get a hold of them. Then they go over the same stuff I already went over in branch!!! Finally they agree to email me a list of documents required

So from the day I wanted to initiate the process, it took them from April 14 to April 29 just to get to the point where I get to know what documents are needed for the mortgage process to begin!!!

I got the approval May 9 for 2.94% for 5 years.

My current lender was also a disaster. BMO. I sent my mortgage advisor an email Mar 27. He did not get back to me until Apr 3. Saying he will look into rates for me. I had mentioned HSBC rates.

Didn't get back to me until Apr 12. Said the best they could do was "around 3.5%". Told me rates are improving and to wait 1 or 2 months. He didn't even bother to submit anything to his pricing team.

In the end I got BMO down to 2.99% for 5 years because I told him on May 1st I was in process with HSBC and RBC to switch. He got back to me same day with an offer.

Contrast this with RBC. I did an online pre-approval, someone called within 15 mins of me completing that form. We met 2 days later. I had a list of documents I needed to send that same day. Approval came 4 days later. Got 2.94% for 4 years and $750 WestJet card plus switch fees covered.

Guess where I'm going.
Deal Addict
User avatar
Jul 21, 2005
1316 posts
136 upvotes
Lévis
mech9t5 wrote:
May 11th, 2019 6:43 am
I had a pretty bad experience trying to get the HSBC mortgage. I started April 14 by calling in and they said the call center cannot start a mortgage application. They also said their system was down so they couldn't make an appointment at the branch either. No problem. I walked over to the branch and set up an appointment for April 16.

...

Contrast this with RBC. I did an online pre-approval, someone called within 15 mins of me completing that form. We met 2 days later. I had a list of documents I needed to send that same day. Approval came 4 days later. Got 2.94% for 4 years and $750 WestJet card plus switch fees covered.

Guess where I'm going.
Contacted a RBC mortage specialist and best he could do was 2.99%. In my case, I really need ~2,84% to make it worth to switch because penaly and so of my actual mortage. Will try to contact BMO to see what they will tell me but I'm pesimist.
Pourquoi pas?
Sr. Member
User avatar
Sep 13, 2015
953 posts
802 upvotes
Alberta
SPARTACVS wrote:
May 11th, 2019 6:53 am
Contacted a RBC mortage specialist and best he could do was 2.99%. In my case, I really need ~2,84% to make it worth to switch because penaly and so of my actual mortage. Will try to contact BMO to see what they will tell me but I'm pesimist.
2.99% was also the best RBC would offer me. My mortgage was up in 2016 with BMO, and i've been procrastinating. Fortunately my current rate is still 2.89%. I thought that I was wasting money this whole time...

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