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[HSBC] HSBC 2.99% 5-yr fixed rate, closed mortgage (high ratio)

  • Last Updated:
  • Apr 4th, 2019 12:15 am
[OP]
Newbie
May 29, 2017
13 posts
27 upvotes

[HSBC] HSBC 2.99% 5-yr fixed rate, closed mortgage (high ratio)

Deal Link:
Price:
2.99%
Expiry:
September 30, 2019
Retailer:
HSBC
More offers from HSBC
Lowest rate I have seen lately from a bank... plus $0-2000 cash back depending on the size of your mortgage

2.99%
(2.99% APR)*
5 year fixed closed term mortgage rate on a high ratio mortgage1

3.09%
(3.12% APR)*
5 year variable** closed term mortgage switch rate or purchase rate


3.24%
(3.27% APR)**
5 year fixed closed term mortgage switch rate or purchase rate
129 replies
Deal Addict
May 12, 2007
1124 posts
281 upvotes
Why would one do 3.24 over 2.99? Both fixed 5yr

Sorry I see now 2.99 is high ratio
Sr. Member
Mar 12, 2017
573 posts
1731 upvotes
series1000 wrote:
Mar 5th, 2019 11:28 pm
Why would one do 3.24 over 2.99? Both fixed 5yr

Sorry I see now 2.99 is high ratio
What's a high ratio mortgage?
Member
User avatar
Dec 12, 2012
285 posts
480 upvotes
Krime1k wrote:
Mar 5th, 2019 11:30 pm
What's a high ratio mortgage?
When the borrower has less than 20% down payment.
Jr. Member
Dec 19, 2014
121 posts
120 upvotes
Calgary, AB
Krime1k wrote:
Mar 5th, 2019 11:30 pm

What's a high ratio mortgage?
Mortgages which are insured by CMHC aka people who put less than 20% down.
Deal Addict
Feb 26, 2006
2369 posts
390 upvotes
Ottawa
Krime1k wrote:
Mar 5th, 2019 11:30 pm
What's a high ratio mortgage?
High Ratio Mortgage is when customer obtains a personal mortgage with mortgage default insurance with HSBC Canada. For full terms and conditions.......

That's what the little 1 is for.
Jr. Member
Nov 10, 2014
104 posts
64 upvotes
Ottawa, ON
Krime1k wrote:
Mar 5th, 2019 11:30 pm
What's a high ratio mortgage?
As per quick Google search, its when the buyer puts down less than 20% of the purchase price for the down payment, thus requiring the mortgage to be insured.
I'm surprised that banks offer lower rates on these mortgages. My guess is maybe high ratio mortgages are deemed safer since they are insured against defaults. Can someone knowledgeable chime in?
Jr. Member
Dec 19, 2014
121 posts
120 upvotes
Calgary, AB
Tadalafil wrote:
Mar 5th, 2019 11:35 pm

As per quick Google search, its when the buyer puts down less than 20% of the purchase price for the down payment, thus requiring the mortgage to be insured.
I'm surprised that banks offer lower rates on these mortgages. My guess is maybe high ratio mortgages are deemed safer since they are insured against defaults. Can someone knowledgeable chime in?
Yep its deemed safer as the mortage provider is the beneficiary on the mortgage insurance. So if anything goes wrong, the insurance pays them out.

Many mortgage providers have started pushing this mortgage with lower interest rate. When we bought a new property with 20% down in 2017, there were providers who were pushing for CMHC insurance with lower interest rate. Especially state street, hated dealing with them so took mortgage from another firm.
Last edited by Mohair on Mar 5th, 2019 11:45 pm, edited 1 time in total.
Deal Addict
User avatar
Aug 28, 2005
1404 posts
258 upvotes
Toronto
Tadalafil wrote:
Mar 5th, 2019 11:35 pm
As per quick Google search, its when the buyer puts down less than 20% of the purchase price for the down payment, thus requiring the mortgage to be insured.
I'm surprised that banks offer lower rates on these mortgages. My guess is maybe high ratio mortgages are deemed safer since they are insured against defaults. Can someone knowledgeable chime in?
Could also be that the principal is higher so the bank is earning more.
Sr. Member
User avatar
Oct 20, 2004
689 posts
36 upvotes
Economy seems to be tanking - I would say there is a good chance to see mortgage rates decrease with the big five banks soon
If not, take this rate offer from HSBC and try to match it at your bank if you are up for a renewal soon.
It is nice to be important, but more important to be nice ;)
[OP]
Newbie
May 29, 2017
13 posts
27 upvotes
OP here. I wonder if HSBC would reimburse for stuff like legal, appraisal, and collateral discharge fees for transfers from another bank?
Sr. Member
User avatar
Oct 20, 2004
689 posts
36 upvotes
gokou3 wrote:
Mar 5th, 2019 11:43 pm
OP here. I wonder if HSBC would reimburse for stuff like legal, appraisal, and collateral discharge fees for transfers from another bank?
From point 5 on the website - you may receive a cash bonus of $1,000 for mortgages between $200,000 up to $499,999.99, and $2,000 for mortgages greater than or equal to $500,000 (the “Cash Back”) (the “HSBC Mortgage Cash Back Offer”). An appraisal fee of $300 per valuation may apply.

For the appraisal fee to be charged/waived, it sounds like ymmv depending on the HSBC advisor you are dealing with.
For the legal and collateral fees .... because they are giving you cashback at the end of the day, I would say there is a decent chance they may charge you these fees regardless
Good to have a talk with a HSBC advisor to see what can be waived or not.
It is nice to be important, but more important to be nice ;)
Deal Addict
User avatar
Apr 1, 2001
4966 posts
338 upvotes
jeeva86 wrote:
Mar 5th, 2019 11:37 pm
Note that hsbc only offers collateral mortgages.
Is this a recent change?
Sr. Member
Mar 12, 2017
573 posts
1731 upvotes
Thanks for all the responses on explaining a high ratio mortgage. I’ve been out of the game for 2 years now and forgot the basics already. I was fortunate enough to get a fixed 5 year standard (non high ratio) with HSBC two years ago at 2.35%.

For those wondering, back then I was unable to get the appraisal fee waived, but they did reduce it $100 or so. The process was somewhat nightmarish, as it took insanely long to go through the process via their call centres, and finalizing it got way to close for comfort when it dragged on so long that I barely got the funds in time to close my house.

That said, not much complaints with them now that I’m in it. They have excellent top up options including 20/20 which was pretty hard to find (back then at least). If you don’t have a HSBC bank account as I don’t, annual top ups can be frustrating. I had to go in person with a cheque to a local branch, and they still managed to not deposit it directly into my mortgage account. There is some bad miscommunication between the call centre (in BC) and the local branches, and you can’t actually call a physical branch directly (at least not in Toronto) which is somewhat insane.

It is a collateral mortgage but since I treat it like a conventional mortgage not using the HELOC, top up as often as possible, have a relatively low mortgage balance, and have no plans to move during the term, it works for me. At 2.35% it was by far my best option at the time.

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