Real Estate

HSBC Equity Power Mortgage (collateral charge mortgage)

  • Last Updated:
  • Aug 19th, 2021 8:27 pm
[OP]
Newbie
Jul 11, 2005
57 posts
8 upvotes
Toronto

HSBC Equity Power Mortgage (collateral charge mortgage)

Hello all,

My mortgage renewal is coming up and I am in the process of evaluating my next step (to renew with HSBC or move my mortgage to another lender).

I currently have an Equity Power Mortgage with HSBC with a fixed interest rate of 2.5%. HSBC is offering 2.24% on a 5-year fixed closed mortgage, and 1.34% on a 5-year variable closed mortgage.

I have been with HSBC with my mortgage since day 1 (it has been 10 years). I heard from other people saying that with Equity Power Mortgage it is more difficult to switch lender as there are more than just paying the transfer out fee to the current lender (get a lawyer to remove HSBC from the mortgage and register the new lender), and after all the fees paid to switch it may not worth the effort as there wouldn’t be any savings at the end, is this true? Can someone with the experience or knowledge be able to provide some info regarding this?

Thank you in advance!
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