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
Sr. Member
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Jul 21, 2013
588 posts
216 upvotes
Calgary
The person I'm emailing with is asking for a CMHC insured certificate, where would I have that? My current mortgage application just has a checkbox "CMHC insured", but I have no certificate.
Newbie
Dec 5, 2012
24 posts
11 upvotes
CALGARY
bobitto wrote:
Apr 4th, 2019 1:02 pm
She says all HSBC mortgages are collateral Smiling Face With Open Mouth

Screenshot_2019-04-04-12-56-28.png
she clearly does not understand what you are saying. or you don't understand what she is saying.
all mortgages are collateral in the sense that all mortgages period everywhere is secured by a property.

a collateral mortgage charge is a mortgage that is essentially a giant line of credit with the particular bank (where you can keep borrowing without changes to the mortgage approval process).
where as a conventional/standard mortgage charge is a loan for your house and only your house. you can't borrow more on that same mortgage without getting rid of it and applying for a new mortgage.
HSBC's version of a collateral mortgage charge is a product as she mentioned called "equity power mortgage" which is essentially a big line of credit secured by the property in order to pay for the property and anything else you feel like.

both have the house a collateral.
Deal Fanatic
Feb 24, 2018
9609 posts
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Roger21 wrote:
Apr 4th, 2019 1:09 pm
The person I'm emailing with is asking for a CMHC insured certificate, where would I have that? My current mortgage application just has a checkbox "CMHC insured", but I have no certificate.
South of 20%? I would presume that's why they're asking.
Jr. Member
Dec 20, 2016
128 posts
21 upvotes
Does HSBC offer a secured line of credit along with renewals?
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Jan 18, 2016
551 posts
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Kitchener, ON
redflagdealsguy wrote:
Apr 4th, 2019 3:06 pm
South of 20%? I would presume that's why they're asking.
He is not asking why he is asking where to get it!!
Jr. Member
Aug 6, 2008
115 posts
66 upvotes
SavvyShopperCa wrote:
Apr 3rd, 2019 8:45 pm
FYI, if you have First National Mortgage and is insured with Genworth then you would not qualify for this rate. It has to be CMHC insured
Can you explain further? If it's a high ratio mortgage and is insured, why does it have to be with CMHC? My mortgage isn't with First National Mortgage but was insured by Genworth. Does that qualify for this rate?
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Oct 13, 2017
143 posts
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Halifax
serjiang wrote:
Apr 5th, 2019 7:32 am
Can you explain further? If it's a high ratio mortgage and is insured, why does it have to be with CMHC? My mortgage isn't with First National Mortgage but was insured by Genworth. Does that qualify for this rate?
On April 3, 2019, I called HSBC to inquire about the interest rate advertised and the CSR told me that we accept both new and renewals mortgage as long at they are high ratio and that are insured with CMHC. I then asked him what about Genworth insured mortgages and he said no, they use to accept them but not anymore.

HSBC's offer T&C and their website does not mention that you have to be insured with CMHC. So it might be YMMV

I recommend reading this RFD article: http://forums.redflagdeals.com/chmc-vs- ... ig-869214/

Here are my assumptions not facts:

Genworth posses a higher risk to the banks since they are a private entity and not backed by the government, i.e. if genworth goes down, all the mortgages insured with them have the same risk to default as someone who does not have default insurance.

HSBC rep told me that Genworth is very hard to deal with, so I am assuming that is partially why HSBC tries to avoid working with them.
Jr. Member
Dec 21, 2015
156 posts
54 upvotes
Vancouver, BC
alphaz wrote:
Apr 4th, 2019 1:41 pm
she clearly does not understand what you are saying. or you don't understand what she is saying.
all mortgages are collateral in the sense that all mortgages period everywhere is secured by a property.

a collateral mortgage charge is a mortgage that is essentially a giant line of credit with the particular bank (where you can keep borrowing without changes to the mortgage approval process).
where as a conventional/standard mortgage charge is a loan for your house and only your house. you can't borrow more on that same mortgage without getting rid of it and applying for a new mortgage.
HSBC's version of a collateral mortgage charge is a product as she mentioned called "equity power mortgage" which is essentially a big line of credit secured by the property in order to pay for the property and anything else you feel like.

both have the house a collateral.
Only thing to worry about here is “Under Canadian law a lender of a collateral mortgage may seize equity to cover other debt you have with the same lender. So, in essence, you are securing all of your loans, credit cards, lines, car loans, and overdrafts held with the lender of your collateral mortgage. “

RBC, HSBC and TD do collateral mortgage only and since many of us including me don’t have an option or it’s too late to find another lender, the best approach here is to cut down business with the lender of your mortgage.
Just to have a safe sleep, I would just keep nothing more than a mortgage account with the lender.
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Dec 10, 2009
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Van Isle
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.
And that gets post of the week from myself. Well said. They are ALL shady and greasy so get the lowest rate you can and walk away.
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Newbie
Jun 28, 2018
1 posts
1 upvote
TokyoG wrote:
Mar 29th, 2019 11:49 pm
WTF, why do people who owe a lot of money get better deals?!?! ... oh i see. Bigger host for these parasites. They can slowly suck your money for 25 years. I digress, this deal is HOT!! ...for those who qualify. Thanks OP
Typically banks offer their best rate to people with less than 20% down because the mortgages are insured (Premium is paid for by the borrower via their down payment which is based on a percentage of the mortgage amount). Thus, the borrower is insuring the loan for the lender, which significantly reduces the risk on behalf of the lender despite a low equity position in the property.

Most lenders will use a Down Payment tiered list for rates which is usually inverted to reflect their loan position; they use Loan to Value (LTV).

High Ratio - Less than 20% Down Payment (80.01%+ LTV): This is Mandatory Insured and considered a High Ratio Mortgage. No Risk so best rate.

Conventional - 20-35% Down Payment (65.01% - 80% LTV): This loan is not required to be insured but must meet the same guidelines as an insured mortgage. When looking at this from the lender's perspective, they have a 20-35% cushion in the market to protect their investment. (Whenever you there is an appreciation or depreciation in the value of your home it effects your equity and not the mortgage amount; the lender does not profit share in the value of the home). So if the economy goes belly up or there is a massive correction in the housing market the lender assumes more of a risk than if the loan were insured.

Conventional - 35%+ Down Payment (Less than 65% LTV): Once you're above 35% downpayment most lenders consider this low risk again and will give you best rate. (*Odds of a 35% housing correction are minimal)

Rates are also higher when they are considered Uninsurable: Rentals, Refinances, Purchase prices that are over $1,000,000.00 and amortizations over 30 years (Not capable of qualifying for insurance).

Note: Some lenders may also make different distinctions in their tiered system. Example: Only High Ratio insured (80%+ LTV) is one rate and Conventional (Less than 80% LTV) is another rate.
Last edited by WillyFisker on Apr 5th, 2019 11:07 pm, edited 1 time in total.

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