Expired Hot Deals

[HSBC] HSBC 2.74% 5 Yr Fixed Mortgage + $2,000 Cashback (High Ratio Mortgage Only!)

  • Last Updated:
  • Apr 5th, 2019 8:34 pm
Deal Addict
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May 22, 2006
1261 posts
477 upvotes
Toronto
What are they offering for low ratio mtg?
Member since 2006

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Newbie
Jul 30, 2004
27 posts
49 upvotes
oakley0023 wrote:
Mar 29th, 2019 11:36 pm
Our broker told me 'high ratio' means under 20% down payment/CMHC insured.

Is this true?
Yes that's correct. They can offer a better rate than a regular mortgage because high ratio mortgages must be insured and therefore lower risk for the lender. And here I am thinking I am being responsible by putting 20% plus down.
Newbie
Jan 19, 2014
9 posts
22 upvotes
Example High Ratio Mortgage
$650,000 Purchase Price
19.99% Down ($129999)
25 Year Amortization
CMHC insurance premium 2.8% ($14560.03)
Payments $1152.97 biweekly
End of 5 yr term Balance $499,552
-$2000 Cashback recieved
$497,552

Vs

$650000 with 20% Down, No CMHC Insurance
Same biweekly payment
End of term Balance is $497,583
Comparison rate 4.03%

So basically for my scenario and conventional mortgages, anything below 4.03% rate will be better than this.
Deal Addict
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Jan 23, 2006
2239 posts
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nitro wrote:
Mar 30th, 2019 12:51 am
I have to ask but why does it mattes the history of an institution when you are trying to get a cheap mortgage and not be indebted for the next 25yrs? Are other banks making billions every quarter any better?

Is say RBC a better place to go? Oh wait, they were involved with helping tax evaders shuffle money offshore as to not pay "their fair share" as exposed in the Panama papers.

What about Scotiabank? They seem friendly with their "You are richer then you think" commercials. Oh wait, they had to put their gold trading unit for sale after its own money laundering scandal back in 2017.

The lady at the TD bank always seems nice right? Oh wait, weren't their employees caught breaking the law and lying to customers to juice profits because they "feared" losing their jobs as exposed in 2017?

I can go on but I'll stop here.

Let's face it. Banks are probably a bane on society helping to enslave the world but so are many other large companies making money. Don't get me started on the politicians like buddy Eric Holder virtue signaling Democratic liberal values via Obama's Hope and Change nonsense while preventing HSBC 's prosecution.

Need a mortgage? Get the cheapest one you can get. Right now given the economy is starting to tank, get an open mortgage as the feds will most likely drop rates.

PAY OFF that mortgage as soon as you can so that the bank makes the least amount off you.

I have a fixed 5 yr mortgage with HSBC at 2.35% from the hotdeals section 2 yrs ago. Also milked them for free money for opening a chequing account, credit card, and trading account. Hell I even referred a RFD member that I didn't even know when he opened his account so both of us got some extra money. Grinning Face With Smiling Eyes

Point is, don't virtue signal that you shouldn't take a cheap(est?) mortgage just because HSBC were involved in some shady deals....this is RFD and we like to game the system to our advantage.
Actually as your mortgage is at 2.35, you’d be better off with a TFSA at 3.2-3.3 instead of prepaying your mortgage.
Heck, mine is at 3%, and I still go for the extra 20-30bp :)

Now that Oaken rates have gone down below 3%, I will be prepaying, but for those with lower rates, Oaken TFSA is still better option
iamalittlepepper wrote:
Aug 13th, 2012 2:55 am
Non of the Royal Purple is BMW qualified which voids your drivetrain warranty.. especially for those who owns the 3.0L N54 engine
tcjsqls wrote:
Jan 13th, 2015 12:56 pm
you have no ideas how a report of stolen credit card (...) affect your credit. Happened twice in your history, that bank won't issue a credit card for you
Deal Addict
Jun 28, 2017
1546 posts
890 upvotes
Ah closed 5 year term eh, I’m looking for a 3 or 4 year term on a rental property, anyone have any idea what the penalties are to end a mortgage early with HSBC?
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Feb 7, 2003
1828 posts
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djredhat wrote:
Mar 30th, 2019 8:29 pm
Actually as your mortgage is at 2.35, you’d be better off with a TFSA at 3.2-3.3 instead of prepaying your mortgage.
Heck, mine is at 3%, and I still go for the extra 20-30bp :)

Now that Oaken rates have gone down below 3%, I will be prepaying, but for those with lower rates, Oaken TFSA is still better option
Completely agree and that is what I do. But most house horny people are maxing out their limits on a mortgage to buy an overvalued property in Toronto with the blind faith that real estate can't go down so they would have drained their TFSA if they even have one, part of the their RRSP (again if they have one) and already hit up the bank of mom & dad.
Member
May 12, 2012
466 posts
344 upvotes
Richmond Hill, ON
This is not really a deal unless you're strapped for cash/can't get a decent mortgage rate. Luckily someone already did some quick maths up above.

Also, the whole thing with company history is valid. It's fine to deal with companies with reputations you support. Personally, I'd rather not support an institution with terrorist dealings. I am also aware that most companies have some form of a black mark in their past. Knowing the details surrounding that black mark can also being important because the media can stretch and hide truths. An informed shopper is the best shopper.
[OP]
Deal Expert
User avatar
Feb 11, 2009
16402 posts
2470 upvotes
Toronto
Ferny111 wrote:
Mar 31st, 2019 10:46 am
This is not really a deal unless you're strapped for cash/can't get a decent mortgage rate. Luckily someone already did some quick maths up above.

Also, the whole thing with company history is valid. It's fine to deal with companies with reputations you support. Personally, I'd rather not support an institution with terrorist dealings. I am also aware that most companies have some form of a black mark in their past. Knowing the details surrounding that black mark can also being important because the media can stretch and hide truths. An informed shopper is the best shopper.
Not a deal for everyone - including me, but it is for those who were planning to put < 20% down anyways
Deal Guru
Sep 2, 2008
10836 posts
993 upvotes
For those without high ratio mortgages, what rates have you been offered?
Sr. Member
User avatar
Jul 21, 2013
588 posts
216 upvotes
Calgary
Is this only for new mortgages or also renewals?
Member
Jan 13, 2009
319 posts
97 upvotes
HyperTech wrote:
Mar 30th, 2019 2:35 pm
2.89% is a really good 5 years closed fix rate.

What's the minimum mortgage required to have acess to this rate?

And 500k mortgage for 2k cash back is great, but...thats alot of a mortgage.
There is no minimum. According to HSBC terminology "1 High Ratio Mortgage is when customer obtains a personal mortgage with mortgage default insurance with HSBC Canada. HSBC High Ratio Mortgage Rate Offer Terms and Conditions". So actually the deal has nothing to do with ratio, it has everything to do with default insurance. I don't know why they say "obtain with HSBC" because this insurance is underwritten by CMHC itself (maybe they mean buy it through them?)
So here the rates for the insurance:
https://www.cmhc-schl.gc.ca/en/finance- ... rance-cost
By the way they increased them quite substantially. When I was buying a house 2 years ago, insurance for a house with a 21% downpayment was 1.25% of the total loan. Now it is 2.4%. They also more than doubled the next tier. And they kept the one with downpayment of 36% the same as before at 0.6% of the total loan.

Now the reason why HSBC is making up this strange terminology, calling insured mortgages high ratio mortgages, is that all high ratio mortgages must be insured by law. Whereas it is voluntary for mortgages with downpayment over 20%. So no one ever insures them because the insurance is ridiculously (!!) expensive as per CMHC rules. With premium of 2.40% they are saying that they expect up to 24 in 1000 mortgages to default completely with 100% loss (i.e. person does not want to pay and the property is worth nothing). This is completely insane to me.
Deal Addict
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Sep 15, 2014
1862 posts
703 upvotes
Scarborough, ON
yashgandhi wrote:
Mar 29th, 2019 8:28 pm
Taken from HSBC thread on SD:
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.

This may not matter for many @ SD, but if you're interested, Netflix's documentary "Dirty Money" Season 1 Episode 4 is an eye opener, with the following synopsis: A trail of suspicious transactions led to startling revelations about banking giant HSBC and its ties to Mexico's deadliest drug cartels

$100 and 2% may be a deal for some, but it's only prudent to know the history of an institution your dealing with.
So they’ll help me move my drug money, too?
Bonus!
Do I need a mortgage to take advantage of the money laundering service?
This space for rent.
Deal Addict
Nov 23, 2008
2902 posts
889 upvotes
deal_with_singh wrote:
Mar 30th, 2019 4:16 pm
No minimums but can only put down 19.9% of your homes value as a down payment
It's like they really want you to default...LOL
I guess then they do get your house and win big
Jr. Member
Dec 21, 2015
156 posts
54 upvotes
Vancouver, BC
I got approved at this rate, I think it's the best deal one can get in todays market.

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