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[HSBC] Amazing Mortgage Rate 2.74% Fixed 5 year

  • Last Updated:
  • May 23rd, 2019 4:22 pm
Deal Guru
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Nov 27, 2005
11511 posts
1128 upvotes
serri17 wrote:
May 15th, 2019 10:58 pm
My mortgage with Equitable bank is 60 months closed with a 4.95% annual interest as of Dec 2018.
The HSBC is a better option? I'm not quite knowledgeable in this, and what do I need to do to switch over to HSBC?

My maturity date is next year in 2020...
I have over 200k but under 250k left to pay. And I recently bought the house in 2016.
How the heck did you get a 4.95% mortgage?
Newbie
Apr 26, 2018
24 posts
2 upvotes
board123 wrote:
May 15th, 2019 11:08 pm
How the heck did you get a 4.95% mortgage?
Oh, it says annual interest rate on Jan 1, 2018 is 4.20%
Annual interest rate on dec 31, 2018 is 4.95% on my letter.
So honestly..i'm not even sure...

So ...yea..
Newbie
Oct 22, 2013
46 posts
7 upvotes
Etobicoke, ON
Tjtj84 wrote:
May 15th, 2019 9:13 pm
I work with HSBC let me know if someone wants reference, if applicable
can you please comment on the post
Deal Addict
Jan 25, 2008
1386 posts
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Laval
newt_101 wrote:
May 15th, 2019 10:06 pm
Anyone with MCAP able to get this rate?

Upon my renewal (end of the month) they are offering me 2.95% for 5-year variable but my mortgage is only about 120K so I don't have too much bargaining room with the rate. I also only have one more bank rate announcement (end of May) to work with before renewal.
Renewing soon...broker got me 2.9% mcap...5 yr variable

260k mortgage and excellent credit score

Probably the best I can get without having to open another bank account
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Oct 24, 2004
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Toronto (Central)
mtlmonk wrote:
May 16th, 2019 12:04 am
Renewing soon...broker got me 2.9% mcap...5 yr variable

260k mortgage and excellent credit score

Probably the best I can get without having to open another bank account
If you are renewing it sounds like you're switching banks? Because you're dealing with a broker right?
Sr. Member
Apr 25, 2005
730 posts
177 upvotes
newt_101 wrote:
May 15th, 2019 10:06 pm
Anyone with MCAP able to get this rate?

Upon my renewal (end of the month) they are offering me 2.95% for 5-year variable but my mortgage is only about 120K so I don't have too much bargaining room with the rate. I also only have one more bank rate announcement (end of May) to work with before renewal.
For my renewal with MCAP coming up at the end of August, they offered
2.90/2.85 5yr variable (standard/value flex)
2.94/2.89 5yr fixed (standard/value flex)

I've applied for HSBC as if I can get 2.79, that would save more $500+ annually.
Newbie
Feb 4, 2019
3 posts
Ram421 wrote:
May 15th, 2019 11:28 pm
can you please comment on the post
sorry to clarify iWork on IT side of HSBC
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Jan 25, 2008
1386 posts
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Laval
newt_101 wrote:
May 16th, 2019 4:20 am
If you are renewing it sounds like you're switching banks? Because you're dealing with a broker right?
Yes sorry
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Oct 24, 2004
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theshowman wrote:
May 16th, 2019 6:08 am
For my renewal with MCAP coming up at the end of August, they offered
2.90/2.85 5yr variable (standard/value flex)
2.94/2.89 5yr fixed (standard/value flex)

I've applied for HSBC as if I can get 2.79, that would save more $500+ annually.
Reached out to MCAP and they got back to me telling me they had just updated my offer and as of now they are offering me:

A 5 year MCAP Value Flex fixed rate mortgage at 2.890%
OR
A 5 year Variable Rate* closed mortgage at prime less the adjustment factor of -1.050%

This is the first time I've experienced a fixed rate LOWER than variable. I've always stuck to variable but now I'm thinking it might be a good idea to switch to fixed.
Any thoughts or suggestions on this please?
Newbie
Sep 20, 2018
5 posts
5 upvotes
serri17 - If your rate is truly 4.95%, then yes, of course HSBC's rates are far better. Unless you're selling your current home before you're up for renewal with your current lender in 2020, you're stuck until the end of the term. Once your term is up - assuming you need to renew - you should negotiate a much lower rate as 4.95% is not at all competitive given today's low rates.

For anyone that is interested, I'm going through the process right now of selling my current home before the end of our current 5-year term. Currently with Scotiabank @ 2.89% which expires March 2020 and the purchase of our new home closes Aug 15th. I've been shopping mortgage rates the last couple months and HSBC's is the best rate I can find. Second best I could get was 3.09% from both RBC (with $1K cash back) and Scotia (no cash back). By breaking our mortgage early, we'll pay a penalty at the higher of; 1) 3-months interest, or 2) the Interest Rate Differential (IRD). I've calculated our penalty at the IRD that works out to about $1,800. We'll make back $1K of that penalty on the cash back promo, and easily net out on top on the interest savings (0.25%) over the 5 years. Financially it makes sense to switch to HSBC.

We're approved with HSBC for the following:

- 2.84% on a five-year fixed closed term mortgage. The 2.74% is for first-time home buyers, which we are not.
- Mortgage is a conventional mortgage, but HSBC will try to push the collateral. More comfortable with a conventional mortgage based on our research.
- $1,000 cash back

Hope this is helpful.
Deal Fanatic
Dec 24, 2005
5285 posts
917 upvotes
serri17 wrote:
May 15th, 2019 10:58 pm
My mortgage with Equitable bank is 60 months closed with a 4.95% annual interest as of Dec 2018.
The HSBC is a better option? I'm not quite knowledgeable in this, and what do I need to do to switch over to HSBC?

My maturity date is next year in 2020...
I have over 200k but under 250k left to pay. And I recently bought the house in 2016.
you are with Equitable for a reason and hopefully this reason is over.
so you can move to a normal lender in 2020 without penalty. switching over now to another lender will likely occur a huge penalty. called Equitable to see what that is. then contact a normal bank to see if you qualify with them.
Deal Fanatic
Dec 24, 2005
5285 posts
917 upvotes
fwiw - I am on week 9 of dealing with HSBC.
it has been 3+ weeks of their mortgage team 'reviewing my documents'

I was approved by a normal bank in under 20 minutes but for compliance reasons I can't go with them.
Because of the 9 weeks of time with HSBC I feel i might as well hang around until they do it -- i am in no rush as I already own the property.

I would never deal with HSBC after this.
I would not trust HSBC to have a deal close in a timely manner.
Anyone who deals with HSBC (myself included now after wasting 9 **** weeks) is an idiot.

Take HSBC's offer. Get a non shitty bank to match the deal (or come close to it) and never work with HSBC.

9 weeks ago I had plans to move everything to HSBC (they are giving me free banking too)
now I would happily pay 3x the bank fees I do now just so i never have to work with them again.
Newbie
Sep 20, 2018
5 posts
5 upvotes
anthonyvl7101084 wrote:
May 14th, 2019 9:04 pm
HSBC said that they don't do bridge financing for the purchase of a new home because my current mortgage for my current home is not with them, does that make sense?

I planned to get a new mortgage with HSBC for a new home purchase that would close a few days before closing on my current home.
I'm in the same boat as you. We were going to aim to close on the sale of our current home a week or so after the purchase of the new home, so that we had a week to do renos on day one (without being homeless). HSBC advised me the same that they wouldn't bridge us since our current mortgage isn't with them.

Instead, we're planning to close on our current home before, and just put our stuff in storage for up to a month. Even with storage costs (and breaking our current mortgage with Scotia Bank 7 months early), the savings from HSBC are too good to pass up.
Newbie
Jul 11, 2009
8 posts
3 upvotes
Mississuaga
Hey, wondering if anyone got this offer recently? I'm looking to renew my mortgage currently at another major bank and would love to get a similar rate :)
If anyone can refer me to specialist it will be greatly appreciated.

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